Mortgage Approvals March 2026 Upward
Mortgage approvals March 2026 rise as borrowing climbs and interest rates ease across the UK housing market. The latest Bank of England (BoE) Money and Credit statistics reveal a steady uptick in mortgage approvals and a modest fall in average rates.
Mortgage Approvals Climb Above Six-Month Average
Net mortgage approvals reached 63,500 in March 2026. This figure rose from 62,700 in February and surpassed the previous six-month average of 63,200. The data signals continued momentum across the lending market.
Remortgaging Activity Surges
Remortgage approvals saw a particularly sharp rise. Approvals jumped from 41,200 in February to 51,300 in March. This surge aligns closely with the end of post-pandemic five-year fixed deals reaching maturity.
Furthermore, net mortgage borrowing climbed to £6.2 billion in March. This compares to £5.2 billion in February and sits well above the six-month average of £4.9 billion. Overall, borrowing activity reflected a market gaining genuine traction.
Mortgage Approvals March Towards Lower Interest Rates
Interest rates on newly drawn mortgages fell from 4.10% in February to 4.03% in March. Simultaneously, rates on the outstanding stock of mortgages dropped to 3.93%. These modest reductions offered buyers a slightly more affordable entry point.
The BoE voted to hold the base rate at 3.75% during this period. However, internal minutes revealed the Monetary Policy Committee was closely weighing inflationary pressures. Specifically, it considered potential “second-round” effects on wages and prices driven by rising energy costs.
A Commitment to Price Stability
The BoE reaffirmed its commitment to keeping CPI inflation at 2%. It stated it would “act as necessary” to keep inflation on track. Moreover, it hinted that a base rate increase later in 2026 remains a genuine possibility.
Industry Voices Urge Cautious Optimism
Property professionals welcomed the figures whilst urging careful interpretation. Jason Tebb, President of OnTheMarket, noted the broader context clearly. “These figures reflect decisions made before, and in the early stages of, conflict in the Middle East,” he explained.
Tebb added that recent base rate holds from the BoE had helped reinforce market stability. His organisation’s own Property Sentiment Index pointed to resilience among both buyers and sellers. Even amid political and economic turbulence, attitudes towards affordability and moving home remained remarkably consistent.
Confidence Holds Despite Uncertainty
Nevertheless, not all commentators shared the same level of confidence. Nathan Emerson, CEO of Propertymark, welcomed the lending momentum but struck a measured tone. He pointed to inflation nudging back up to 3.3% as a potential influence on future rate decisions.
Emerson also highlighted the delayed nature of financial pressure on households. “Additional pressure on household finances often arrives as an aftershock,” he said, “sometimes many months later.” Consumers were already absorbing immediate cost increases on everyday household items.
Household Finances Face Growing Pressure
Beyond mortgage rates, broader cost pressures continued to mount for consumers. Emerson drew attention to upcoming energy price cap decisions by Ofgem. A review is due imminently, and any upward revision could add further strain to monthly budgets.
Additionally, general price increases on household goods were already being felt. Emerson urged consumers to remain “extra vigilant” on monthly spending. He warned that outgoings may continue to climb as 2026 progresses.
Timing Adds Important Context
Crucially, these figures capture a specific window of time. The data reflects activity after the Spring Statement on 3rd March. However, it predates the full economic implications of Middle East tensions becoming clear.
This timing matters significantly when assessing the figures. What looks positive today may face fresh headwinds in the months ahead. Analysts will be watching April and May data closely for any signs of a shift.
Looking Ahead: Resilience Meets Realism
Despite the uncertainties, the March data paints a broadly positive picture. Approvals are rising, rates are easing slightly, and borrower confidence appears intact. Therefore, the housing market enters the spring period on reasonably firm footing.
However, the outlook beyond spring remains less certain. Inflationary pressures, global instability, and potential rate changes loom on the horizon. Both buyers and industry professionals will need to balance optimism with careful financial planning in the months to come.
