Mortgage Approvals Plummet as UK Housing Market Outlook Weakens

UK mortgage approvals plummeted to their lowest level since January 2024 in July, according to data from the Bank of England.

The central bank reported that lenders approved just 56,053 mortgages for house purchase last month, falling short of forecasts and marking a decline from June's revised reading of 58,215.

Meanwhile, consumer lending grew more than expected in July, with net unsecured lending to consumers rising by £2.006 billion - the largest increase since November 2025.

Ruth Gregory, deputy chief UK economist at Capital Economics, noted that the data suggests 'the near-term outlook for the housing market is weak', and that households may have funded some of their spending by lowering their saving rate and borrowing more.