Mortgage Market Set for Fresh Surge as Approvals Climb Again
Momentum is building again in the mortgage market and one of the UK’s leading brokers believes this recovery still has room to run.
New research from Alexander Hall suggests mortgage approvals for both home purchases and remortgaging have been steadily climbing over the past three years and that upward trend is expected to continue through the first half of this year.
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Let’s break this down. After a turbulent period marked by rising interest rates and affordability pressures, the market appears to be stabilizing. Data drawn from the Bank of England shows that average monthly approvals for house purchases have risen significantly since 2023. There was a seasonal slowdown toward the end of last year, which is typical in the final quarter, but the broader trajectory remains positive.
Now, forecasts point to modest but consistent monthly growth in approvals through the first and second quarters. That may not sound dramatic, but in a market where confidence is everything, steady gains matter. They signal that buyers are returning, lenders are active and deals are getting done.
Remortgaging is another key part of the story. Many borrowers who locked into fixed-rate deals during the ultra-low rate era are now reaching the end of those terms. And instead of facing the sharp shocks seen a year or two ago, they are entering a more competitive environment. Rates have eased compared to their recent peaks and lenders are expanding product ranges while adjusting affordability criteria.
That combination is encouraging more homeowners to act. Forecasts suggest remortgage approvals could jump sharply in the coming months, reflecting pent-up demand and improved confidence.
Why does this matter beyond the UK? Because housing markets often serve as a barometer for economic stability. When mortgage activity rises, it supports construction, legal services, home improvements and consumer spending. It signals that households feel secure enough to make long-term financial commitments.
Of course, risks remain. Political uncertainty, inflation pressures and global economic shifts can all influence borrowing costs and sentiment. But for now, the data paints a picture of resilience rather than retreat.
If this projected momentum continues, the first half of the year could mark a meaningful turning point for the housing sector and possibly for broader economic confidence as well.
Stay with us for continuing coverage of global housing and financial markets, because in times like these, understanding the direction of lending and homeownership trends has never been more important.
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