Mortgage approvals on course to hit 780,000 threshold this year

The latest research by award winning mortgage adviser, Alexander Hall, has shown that, so far this year, average monthly mortgage approval levels are at their highest since 2021 and, whilst mortgage market activity may sit some way off historic highs, we're on course to see over 780,000 mortgages approved by the end of the year.

Alexander Hall analysed historic mortgage approvals data from the Bank of England to see just where the market currently sits as a result of improving borrower sentiment, driven by a string of reductions to the base rate.

The research shows that so far this year, the number of monthly mortgage approvals has averaged 65,119.

This is already some 4% higher than the average monthly total seen over the course of 2024 following a 31% increase between 2023 and 2024.

Whilst provisional, this current level of mortgage approval market activity is the highest seen since 2021 and, as a result, Alexander Hall forecasts that total mortgage approvals could reach 781,429 come the end of the year.

Stephanie Daley, Director of Partnerships at mortgage advisor, Alexander Hall, commented:

"The mortgage sector has been benefiting from improving consumer sentiment since the Bank of England first put a hold on interest rates back in September 2023 and this momentum has only grown stronger following the four cuts that have materialised since.

As a result, we've seen consistently positive growth in mortgage approval numbers over the course of the last year and it's apparent that this trend has continued into 2025.

Of course, we're yet to see the market return to full strength when comparing current activity to previous historical highs, but it's also important to note that whilst there have been improvements to market affordability by way of stronger earnings growth, the nation's homebuyers are facing a considerably tougher task in today's market.

Despite these challenges, we're on course to see total mortgage approvals exceed the 780,000 threshold this year, which demonstrates that buyer appetites are very much alive and well in today's market."