London, 30 April 2024 – UK banks approved the highest number of mortgages in 1.5 years in March, driven by a combination of easing concerns over rising interest rates and continued strong demand for property. According to data from the Bank of England (BoE), lenders approved 61,300 mortgages in March, up from 60,500 in February. The March figure is the highest since September 2022 and also beat analyst expectations of 61,000 approvals.
While rising interest rates had initially cooled activity in the mortgage market, it appears that buyers are gradually adjusting to them. The number of mortgage approvals in March also surpassed analyst expectations, coming in at 61,000. In addition to the rising volume of mortgages, total gross lending also increased in March, reaching £20.1 billion (€23.51 billion). This is the highest level of lending since February 2023.
Despite the growing appetite for mortgages, analysts expect that the housing market is likely to slow down in the future. This is due to rising property prices and further interest rate hikes, which the BoE has signaled are likely in its fight against inflation.
Additional information:
- UK property prices have risen significantly in recent years, making it difficult for many people to afford to buy a home.
- Mortgage interest rates have soared to 15-year highs, increasing monthly repayments on loans.
- Despite the rising cost of borrowing, demand for property in the UK remains strong.
Sources: Bank of England press release
