What were the UK mortgage approval figures in December 2025?

In December 2025, mortgage approvals for house purchases reached 61,013, the lowest level in 18 months.

Why did UK mortgage approvals decline in December 2025?

The decline in mortgage approvals was primarily due to uncertainties surrounding the recent budget, contributing to a sluggish housing market.

What is the outlook for the UK housing market in 2026?

Experts anticipate the UK housing market will rebuild momentum in 2026, with expectations of further interest rate cuts and increased stability.

Home / Business and Economy / Mortgage Approvals Hit 18-Month Low as Housing Market Cools

Mortgage Approvals Hit 18-Month Low as Housing Market Cools

30 Jan

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Summary

December saw the lowest mortgage approvals for home buyers in 18 months.
Experts anticipate a housing market rebound due to budget certainty and rate cuts.
Consumer credit growth remained steady, with credit card borrowing increasing.

Mortgage Approvals Hit 18-Month Low as Housing Market Cools

Mortgage approvals for house purchases in December fell to 61,013, marking an 18-month low and a decrease from the previous month's 64,072 approvals. This downturn reflects a sluggish housing market in the fourth quarter of 2025, largely due to budget uncertainties. Experts predict a market resurgence in 2026, as financial conditions stabilize and interest rates are expected to decline further.

Lenders have been reducing mortgage rates, and remortgaging approvals saw an increase, indicating borrowers are seeking better deals. Consumer credit growth remained stable, although credit card borrowing reached its highest point since January 2024. Household savings also saw a dip in December, influenced by seasonal spending and tax payments.