Net mortgage approvals for house purchases increased to 62,600 in February 2026, up from 60,200 in January, but below the average of around 63,500 over the previous 6-months according to BoE data.

Approvals for remortgaging increased to 41,200 in February from 38,500 in January, with an ‘effective’ interest rate of 4.10% in February, from 4.09% in January.

Alice Haine, Personal Finance Analyst at Bestinvest by Evelyn Partners, said: “UK mortgage approvals edged up in February, suggesting that buyers were less hesitant to proceed with purchases amid improving affordability - the result of easing inflation and softer mortgage rates - and greater clarity on property taxation following the Autumn Budget.    

“The effective rate on newly drawn mortgages increased to 4.10% in February from 4.09% in the previous month amid shifting interest rate expectations. The effective rate on the outstanding stock of mortgages also rose to 3.95%, up from 3.90%. Since then, rapid changes in inflation and interest rate expectations have pushed average two- and five-year fixed rates even higher, creating more pain for households hoping for things to get better and reducing mortgage choice as some lenders withdraw products altogether.”