FX.co ★ UK Mortgage Approvals Rise in June Despite Higher Borrowing Costs

Net mortgage approvals for house purchases in the UK, a key indicator of future borrowing, rose to 58,200 in June 2026 from a revised 56,600 in May, beating market expectations of 57,100. However, approvals remained close to two-year lows and below the prior six-month average of around 61,400, underscoring the drag from elevated borrowing costs. Approvals for remortgaging with a different lender also inched up, to 34,200 from 33,800. At the same time, the effective interest rate on newly drawn mortgages increased to 4.35% in June from 4.22% in May, its highest level in more than a year. The average rate on the overall stock of mortgages also moved higher, reaching a record 3.96%.