FX.co ★ UK Mortgage Approvals Fall to Two-Year Low

Net mortgage approvals for house purchases in the UK declined to 59,999 in January 2026, down from 61,007 in December and below market expectations of 62,000, marking the lowest level since January 2024. The drop underscores a broader slowdown in the UK housing market, which was weighed down last year by the expiry of a temporary tax break on certain property transactions and by muted buyer demand ahead of the November annual budget. Remortgage approvals, covering borrowers refinancing with a different lender, also eased to 38,100 in January from 38,400 in December. The effective interest rate on newly drawn mortgages edged down to 4.09% from 4.15%, while the rate on the outstanding stock of mortgages slipped slightly to 3.90% from 3.92%.