Market is in ‘natural cooldown’, says finance expert
Mortgage approvals fell 14.9% in May, down to 56,205 compared to 66,034 in April and below the six-month average of 63,000. They are down 10.8% year-on-year, compared to 62,980 in May 2025, according to the latest Bank of England figures.
Remortgaging approvals are also down to 33,300 in May from 51,200 in April. However, Rachel Springall, finance expert at Moneyfactscompare.co.uk, pointed out that last month saw the highest monthly figure for remortgage approvals in four years and the Bank of England approval data for remortgaging only captures those with a different lender, rather than those refinancing with their existing mortgage provider.
“The slowdown in mortgage approvals across house purchases and remortgaging during May is a somewhat natural cooldown considering recent unrest in the mortgage market,” she said.
“Mortgage rates have started to come down from their April peaks, so hopefully this will slowly build up momentum in the months ahead, and no doubt borrowers will be hoping for more stability in the market.”
Nathan Emerson, CEO at Propertymark, agreed: “There remains underlying demand from people looking to move home. Propertymark members continue to see committed buyers in the market, and greater certainty around lending conditions, alongside increased housing supply, will be essential to restoring confidence and supporting a healthy level of housing market activity in the months ahead.”
Inevitable given political and economic uncertainty
Marc von Grundherr, director of Benham and Reeves, said that the fluctuations were inevitable against a backdrop of ongoing political and economic uncertainty.
“A dip in mortgage approvals shouldn’t be mistaken for a loss of buyer confidence,” he said.
“The reality is that today’s buyers are far more pragmatic and decisive than they were a year or two ago. Rather than waiting indefinitely for the perfect mortgage rate, many have accepted that the market has stabilised and are moving ahead with confidence. The need to move now outweighs the hope of marginally lower rates.
A temporary blip
“As long as lenders remain competitive and borrowing costs continue to ease gradually, we expect any slowdown in approvals to prove temporary, with buyer demand remaining resilient through the second half of the year,” he said.
Verona Frankish, CEO of Yopa, also pointed out the wider recovery being witnessed across the housing market. She said: “Monthly variation is expected and the housing market rarely moves in a straight line. The bigger picture remains encouraging.
“While approval numbers may ebb and flow, the underlying market remains resilient. With lenders continuing to compete for business and expectations of further monetary easing still in place, we’re confident buyer activity will remain healthy throughout the second half of the year.”
