FX.co ★ UK Mortgage Approvals Unexpectedly Fall

Net mortgage approvals for UK house purchases, a key gauge of future borrowing, declined to 54,900 in August 2026, down from a revised 55,900 in July and below market expectations of 56,100. This marked the lowest level since December 2023 and kept approvals well beneath the previous six-month average of around 60,100, underscoring sustained pressure from elevated borrowing costs. Approvals for remortgaging with a different lender also fell, slipping to 34,000 from 34,600. At the same time, the effective interest rate on newly drawn mortgages increased to 4.60% in August from 4.45% in July, while the rate on the outstanding stock of mortgages inched up to 4.00% from 3.97%.