Mortgage approvals in March 2026 sat slightly higher than the six month average and average mortgage rates decreased slightly, according to the latest Bank of England (BoE) Money and Credit statistics.
Net mortgage approvals, a measure of future borrowing, increased to 63,500 in March from 62,700 in February, above an average of around 63,200 over the previous six months. In line with the end of the COVID-boom five year fixed deals coming to an end, approvals for remortgaging increased to 51,300 in March, from 41,200 in February.
As a result, net mortgage borrowing increased to £6.2 billion in March, from £5.2 billion in February, above the previous six month average of £4.9 billion.
Commentators from around the property community have highlighted the need for the numbers to be viewed in the context of the the economic climate in March; after the Spring Statement on 3rd March, and before the full implications of the conflict in the Middle East had been realised.
Jason Tebb, president of OnTheMarket, said: “Of course, these figures reflect decisions made before, and in the early 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. It demonstrates the ongoing resilience of the housing market and 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 resilience and optimism among buyers and sellers. Even against a backdrop of ongoing political and economic turbulence, attitudes towards affordability, property values and moving home remain remarkably consistent.”
The BoE’s report shows interest rates on newly drawn mortgages fell from 4.1% in February 2026 to 4.03% in March. At the same time, the rates on the outstanding stock of mortgages also fell to 3.93% in March, down from 3.95% in February. Although the BoE voted to hold interest rates at 3.75%, the minutes of the meeting provide an insight into current thinking within the monetary policy committee, as it considered the possible repercussions of a “second-round” impact on price and wage setting as a result of inflationary pressures in the wake of higher energy prices.
With a commitment to maintaining inflation at 2%, the bank said it would continue to “act as necessary to ensure that CPI inflation remains on track” and suggested an increase in the base rate later this year.
Consumers may well be “extra vigilant” when it comes to monthly spending, Nathan Emerson, CEO of Propertymark, said. “While it is positive to witness continued momentum regarding lending, we must be mindful of potential longer-term impacts due to current global unrest. We have witnessed inflation nudge back upward to 3.3%, which may influence future base rate decisions across the summer months.
“Additional pressure on household finances often gets translated to consumer level as an ‘aftershock’, sometimes many months in delay. However, already there have been instant burdens for consumers to deal with, such as price increases on general household items, and we have additional hikes to consider, such as how Ofgem might react regarding the next energy price cap review, which is due to take place next month.
“Currently, it is a case of being extra vigilant on monthly spending, considering that some outgoings may climb upwards as the year plays out.”
