Approvals for house purchase loans — often seen as a forward-looking indicator — declined for the fourth month in a row, down by 3,100 to 60,500. In contrast, remortgage approvals with new lenders rose by 1,600 to 35,300, building on a 1,000 increase in March.
The effective interest rate on newly arranged mortgages edged down slightly to 4.49% in April. Meanwhile, the rate on existing loans crept up to 3.86% from 3.84%.
“UK mortgage approvals have declined for the third consecutive month, casting a shadow over the outlook for early 2025 and prompting renewed calls for the Financial Conduct Authority (FCA) to reassess current lending regulations,” said Aaron Milburn (pictured left), UK managing director at Pepper Advantage. “While the recent interest rate cut may provide some relief for existing borrowers, the data highlights the market’s ongoing struggle with economic uncertainty.
“Persistently high inflation and broader macroeconomic pressures continue to dampen expectations for further rate reductions, leaving the mortgage market in a prolonged state of flux.”
Nathan Emerson (pictured centre), chief executive of Propertymark, noted that affordability concerns remain front of mind for many prospective buyers. “As the global economy continues to find a new balance, many people are acutely aware there could be challenges ahead regarding overall affordability when approaching the buying and selling process,” he said. “Many people may have also been temporarily deterred from potentially moving house following Stamp Duty threshold hikes across England and Northern Ireland from the start of April.”