UK mortgage approvals for home purchases fell to 54,900 in August 2026 and the rate on new mortgages rose to 4.60%, Bank of England figures show
The Bank of England's Money and Credit release for August 2026, published on 29 September, shows net mortgage approvals for house purchases down to 54,900 from 55,900 in July, below an average of around 60,100 over the previous six months. The effective interest rate on newly drawn mortgages rose to 4.60% from 4.45%.
What the Bank of England published
The Bank of England publishes its Money and Credit statistics every month. The release for August 2026, dated 29 September, says net mortgage approvals for house purchases, which the Bank calls an indicator of future borrowing, decreased to 54,900 in August from 55,900 in July. That is below an average of around 60,100 over the previous six months. Approvals for remortgaging, which only count remortgaging with a different lender, decreased to 34,000 from 34,600.
Borrowing and rates
Net borrowing of mortgage debt by individuals increased to £4.4 billion in August from £4.1 billion in July, below the previous six-month average of £5.2 billion, and the annual growth rate of net mortgage lending stayed at 3.6%. Gross secured lending decreased to £23.6 billion from £25.3 billion. The effective interest rate, the rate actually paid, on newly drawn mortgages increased to 4.60% from 4.45%, and the rate on all outstanding mortgages was 4.00%, up from 3.97%. On 17 September 2026 the Bank announced that its Monetary Policy Committee had voted by six to three to hold Bank Rate at 3.75%, with three members voting to raise it to 4%. UK CPI inflation was 3.1% in August, and the Bank's minutes note that borrowing rates for households, including two-year fixed-rate mortgages, remained higher than before the conflict in the Middle East. Its next rate decision is due on 5 November 2026.
What Al Mithaq adds
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