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

Net mortgage approvals for UK house purchases fell to 56,205 in May 2026, down from a revised 66,034 in April and below market expectations of 62,900. This was the lowest level since December 2023 and significantly below the six-month average of 63,300, as rising mortgage rates and deteriorating consumer confidence—further undermined by the Iran war—weighed on house prices and buyer demand. Remortgaging approvals also declined sharply, dropping to 33,300 in May from 51,200 in April. The effective interest rate on newly drawn mortgages rose to 4.22% in May, compared with 4.08% in April, while the rate on outstanding mortgages held steady at 3.92%.