UK Mortgage Approvals Hit Two-Year Low Amid Rising Costs

The number of mortgage approvals for home buyers in the UK hit its lowest level in over two years, according to recent figures from the Bank of England.

In July, there were 56,053 mortgage approvals made to home buyers, which is a decrease from the 58,215 approvals recorded in June. This represents the lowest monthly figure since January 2024, when there were 56,032 approvals.

The average UK house price also saw a slight increase of 0.2% month-on-month in August, according to Nationwide Building Society, with prices averaging £275,465 across the country. The annual increase was 1.6%.

Experts point to the recent increase in fixed-rate mortgage costs and geopolitical tensions as contributing factors to the decline in mortgage approvals.