Mortgage Approvals Hit Two-Year Low as Consumer Lending Surges

UK mortgage approvals fell to their lowest level since January 2024 in July, according to Bank of England data. The number of approved mortgages for house purchases dropped to 56,053, below all forecasts that had expected a rise to 59,500.

The data also showed that net unsecured lending to consumers rose by £2.006 billion on the month, exceeding economists' predictions and marking the biggest monthly gain since November 2025.

House price growth remains subdued, with Nationwide reporting an annual increase of just 1.6% in August, well below consumer inflation rates.