The pipeline of future housing transactions remains resilient, with net mortgage approvals tracking above the latest six month average, according to the latest Bank of England Money and Credit Data for April 2026.
Net mortgage approvals for house purchases increased to 65,900 in April, above an average of around 63,100 over the previous six months. This is despite new mortgages being charged on average 4.08% interest, up from 4.03% in March.
Commentators have pointed to the low levels of consumer confidence recorded by the UK GfK Consumer Confidence Index, currently at its lowest levels since October 2023, as evidence of limited intent to make “major purchases”.
Jason Tebb, President of OnTheMarket, reminds us the Bank of England’s figures are now four to five weeks old and “reflect decisions made in the earlier stages of the conflict in the Middle East when buyers may have been keen to take advantage of competitive mortgage rates they had managed to secure.”
He suggests the data does “demonstrate the ongoing resilience of the housing market” and predicts “the recent holds in base rate from the Bank of England should further help reinforce this sense of stability.”
“Our own property sentiment index suggests that buyers and sellers continue to adapt to market conditions. Even against a backdrop of ongoing political and economic turbulence, attitudes towards affordability, property values and moving home remain remarkably consistent,” he said.
Wider economic considerations, such as energy costs may also begin to factor into home movers spendings decisions, according to Nathan Emerson, CEO of Propertymark: “It is disappointing to see that April 2026, the period that today’s report covers, experienced a decrease in lending,” he said, remarking on net borrowing of mortgage debt by individuals decreasing to £4.4 billion in April, from £6.8 billion in March, below the previous six-month average of £5.1 billion.
“A surprise decrease in inflation in May could provide temporary respite for many consumers when it comes to their personal finances. It might also trigger a temporary uplift in lending by the time May’s lending figures have been published,” he added.
“However, now that Ofgem have announced that household energy prices will rise by 13 per cent in response to geopolitical tensions, many individuals and families may be facing additional financial pressures in the very near future, on top of the challenges they have had to face since the start of the year. This may steer some people to apply a more cautious approach regarding spending habits and could impact both the mortgage market and the wider economy across the forthcoming months.”
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk suggests the recent resilience may in fact reflect a rush to secure mortgage deals before the impact of the war in the Middle East begins to hit. “Approvals for remortgaging during April of 51,263 was slightly higher compared to March, of 51,247, and becomes the highest monthly figure since October 2022. The huge drive towards remortgage business is inevitable given many will be coming off cheap fixed rate mortgages this year. The other key driver would be the rush to secure a deal at a time when turmoil was rampant in the mortgage market, with rates increasing due to the unrest in the Middle East. It is also worth pointing out that the Bank of England approval data for remortgaging only captures those with a different lender,” she said.
“The number of approvals for house purchases rose up from March, to 65,945 from 63,979. Again, this change could well be a result of borrowers rushing, amid recent unrest in the mortgage market, which not only inflated mortgage rates, but also affected product choice. However, the intent to make ‘major purchases’ has dropped to its lowest level in over a year, according to GfK. Hopes that this sentiment will improve over the next few months would be incredibly optimistic, with the cost of living projected to rise, and the conflict in the Middle East now three months in.”
Meanwhile, Richard Pinch, Senior Risk Director at Broadstone, suggests April’s figures point to a lending market that is beginning to feel the impact of deteriorating consumer confidence and a more challenging interest rate outlook following the outbreak of the Iran conflict at the end of February. “Broader data through Q1 suggests a more supportive backdrop and an economy that was encouragingly beginning to build some positive momentum which helped increase borrowing activity,” he said.
“However, the Iran conflict has materially changed the outlook in the UK. Inflation concerns are back on the radar, prompting markets to reassess the path of interest rates and pushing mortgage pricing higher. That has created a renewed affordability squeeze for households at a time when many prospective buyers were banking on improvements in financing conditions.”
Mark Harris, chief executive of SPF Private Clients, suggests the “underlying resilience to the housing market…started to make itself apparent once the Budget was in the rear-view mirror and continued even as rates started to rise as a result of the Middle East conflict.” He reasons that borrowers “may be opting for the ease of sticking with their existing lender when coming to the end of their current deal, rather than shopping around for a new one”.
Tomer Aboody, director of MT Finance, thinks buyers are driving resilience despite political uncertainty. “Although we have seen slightly higher mortgage rates, surprisingly we have also seen an increase in mortgage approvals for buyers, which indicates that people still want or have to move and perhaps are getting bored of waiting around for optimal conditions,” he said.
“With no positivity coming from the government and the economic outlook looking tough, buyers are having to be resilient. The macro climate is hitting mortgage rates and inflation, but that cannot hide the poor leadership currently in evidence in the country, where there is no push for growth.”
