FX.co ★ UK Mortgage Approvals Jump in May

In May 2025, net mortgage approvals for home purchases in the UK—a crucial indicator of upcoming borrowing activity—climbed to 63,032. This increase followed an upward revision of 60,656 in April and surpassed market forecasts of 59,750. The stronger-than-expected rise indicates a rapid recovery in the housing market after the April expiration of a homebuyer tax incentive. Concurrently, remortgage approvals (pertaining to borrowers transitioning to a new lender) surged by 6,200 to reach a total of 41,500, marking the largest monthly increase since February 2024. In May, the 'effective' interest rate for newly drawn mortgages slightly decreased to 4.47% from 4.49% in April, whereas the rate on existing mortgage balances rose marginally to 3.87% from 3.86%.