After a subdued April, the latest Bank of England figures paint a more promising picture of the UK mortgage market — a subtle but meaningful shift that could mark the start of a summer resurgence.
A Rebound in Borrowing Confidence
According to May’s Money and Credit report, net borrowing of mortgage debt by individuals increased by £2.8bn — reversing the sharp £13.8bn fall recorded in April. While these fluctuations are not uncommon around financial year-ends and policy speculation, this rebound suggests a stabilisation in buyer sentiment.
The annual growth rate for net mortgage lending nudged up from 2.5% to 2.6%, while gross lending rose to £20.4bn, up from £16.9bn the month before. At the same time, gross repayments decreased to £17.6bn — a signal that more borrowers are holding their ground and choosing to remain in the market rather than repay early or exit.
Approvals Edge Upward for First Time This Year
Perhaps the most telling indicator is the rise in mortgage approvals. May saw net mortgage approvals for house purchases increase by 2,400 to 63,000 — the first uptick since December 2024. Remortgage approvals also saw a meaningful lift, up by 6,200 to 41,500. That’s the largest increase since February 2024 and may point to improving borrower appetite and lender competition on refinancing.
From Hesitation to Hesitant Optimism
Nathan Emerson, Chief Executive of Propertymark, described the shift as “one of the loudest signals” of improving affordability and growing economic confidence. He also highlighted a 30% increase in property viewings across the UK in May — underlining that consumer activity is not just returning, but gathering momentum.
We’re seeing the same across our Simpson & Marwick branches. Buyers who pressed pause earlier in the year are now re-engaging, reassured by falling fixed rates and improved clarity around interest rate direction. That said, the market remains price-sensitive and buyers continue to expect value — particularly in the £300k–£600k bracket, where choice is more competitive.
National Housing Bank: A Welcome Signal of Intent
Adding to the optimism, the UK Government’s pledge to launch a National Housing Bank — with a target of delivering 500,000 new homes — is a promising step. If delivered well, it could unlock supply-side constraints, increase flexibility for aspiring homeowners, and address some of the structural barriers to long-term affordability.
Macroeconomic Forces Still at Play
KPMG’s Karim Haji noted that the bounce in approvals bucks the downward trend seen earlier in the year. “The gradual easing of interest rates could be helping to boost confidence and demand,” he said. While the cost of living remains high, a fall in unsecured consumer borrowing suggests rising incomes are beginning to catch up with day-to-day expenses.
That sentiment is reflected on the ground. We’re still seeing some hesitation among more cautious buyers, especially those watching the Bank of England’s base rate decisions closely. But with many lenders already trimming mortgage rates and competition heating up in the mid-tier lending space, the trend is gently upward.
The Simpson & Marwick Take
This latest data points not to a boom, but to a firming of the foundations. Confidence is gradually returning. For sellers, now is a sensible moment to re-enter the market before demand outpaces supply. For buyers, competitive mortgage products and a more stable rate environment offer opportunity — but selectivity remains key.
As ever, our teams across Edinburgh, the Lothians, Aberdeen and the North East are on hand to advise clients on how best to navigate these conditions — with a steady hand, local insight and sharp market intelligence.
