30.01.202609:44:13UTC+00UK Mortgage Approvals Slide to Lowest Since 2024

In December 2025, net mortgage approvals for house purchases in the UK declined to 61,013, falling from a downwardly revised figure of 64,072 the previous month and significantly below market anticipations of 64,800. This represents the lowest level observed since June 2024, highlighting the broader deceleration in the UK housing market throughout 2025. The market activity diminished following the end of a temporary tax relief on certain home purchases. Additionally, buyer demand was further subdued leading up to Finance Minister Rachel Reeves' annual budget in November, as households postponed decisions due to concerns about potential tax increases on higher-value properties.

In contrast, approvals for remortgaging, which only include refinancing with different lenders, increased by 1,600 to reach 38,400 in December. The effective interest rate on newly issued mortgages decreased slightly to 4.15% in December from 4.20% in November. Meanwhile, the rate on the outstanding mortgage stock saw a slight increase to 3.92%, up from 3.90% the previous month.