Net mortgage approvals for house purchases increased to 63,000 in May, a total up by 2,400 compared to April, new Bank of England (BoE) figures have shown.

May’s rise was the first time this monthly total has increased since December 2024.

Approvals for remortgaging, which only capture deals remortgaged with a different lender, also saw increase in May and climbed by 6,200 to 41,500. This as the largest increase since February 2024 (6,600).

The BoE’s data also revealed that net borrowing of mortgage debt by individuals increased by £2.8bn to £2.1bn in May, following a large decrease in net borrowing of £13.8bn to -£800m in April.

Figures also showed that the annual growth rate for net mortgage lending increased slightly from 2.5% to 2.6% in May.

CEO of Octane Capital, Jonathan Samuels, commented: “May’s uplift in mortgage approvals is a clear sign the market is regaining its footing after a more muted few months and, with the distraction of the stamp duty deadline now behind us, buyers are re-engaging and they’re doing so with confidence.

“Stable interest rates and a wider range of more favourable mortgage products are fuelling renewed demand, particularly among first-time buyers and movers looking to capitalise on improving affordability.

“We’re heading into H2 with momentum and the fundamentals suggest we’re set for a stronger second half of the year, with sentiment finally moving in the right direction.”

CEO of Just Mortgages and Spicerhaart, John Phillips, added: “The housing market continues to show real resilience – even in the face of stubborn inflation and some painful changes that came with the new tax year. This has been helped by continued innovation from lenders and real proactive support from advisers.”

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