What Rising Mortgage Approvals Mean for Buyer Confidence

Signs of Momentum in an Uncertain Market

In a welcome turn for the property market, mortgage approvals for house purchases rose sharply to over 64,000 in June 2025, the highest level seen since early 2022. Alongside this, remortgaging activity also reached a multi-year high, suggesting a notable rebound in borrower confidence despite ongoing economic pressures.

At a time when headlines are still dominated by inflation concerns and global market volatility, this surge in approvals reflects a shift in sentiment among both buyers and lenders. So, what is driving this renewed activity, and what does it mean for those looking to move, invest, or refinance?

Why Are Mortgage Approvals Rising?

A number of factors have contributed to the spike in mortgage approvals. First, lenders have been gradually reducing interest rates in response to falling swap rates and a more stable economic outlook. This has made fixed-rate products more attractive and attainable for buyers who may have previously delayed decisions during periods of volatility.

Second, the housing market is seeing pent-up demand come to the surface. Many would-be buyers paused their plans over the past 18 months, waiting for more favourable conditions. With increased rate stability and greater lender flexibility, particularly for first-time buyers and self-employed applicants, many are now ready to act.

We are also seeing a more confident response from lenders, some of whom have expanded their product ranges and relaxed certain criteria to attract new business. In turn, this is giving buyers more options and encouraging further movement in the market.

What This Means for Buyers and Movers

While the economic backdrop still poses challenges, the recent spike in approvals is a positive indicator. It suggests that buyers are feeling more confident in their ability to secure competitive mortgage deals, and that lenders are increasingly willing to support a broader range of applicants.

For first-time buyers, the increase in lending activity could signal a more accessible market, especially as some lenders revisit higher loan-to-value products. For existing homeowners, the surge in remortgaging activity reflects a growing awareness of the opportunity to lock in better rates or refinance onto more flexible terms.

Making the Most of a Renewed Market

If you have been holding off on a purchase or remortgage, now may be the right time to revisit your plans. With more lenders returning to the market with improved deals, and confidence building across the board, the environment is more favourable than it has been in some time.

At Altura Mortgage Finance, we are helping clients across the UK take advantage of these changes. Whether you are a first-time buyer, a homeowner looking to remortgage, or simply exploring your next move, we can help you access competitive products and navigate the market with confidence.