Net mortgage approvals climbed by 900 to reach 64,200 in June, according to the latest Bank of England (BoE) data.

The central bank’s figures also revealed that approvals for remortgaging, which only captured remortgages with a different lender, also increased by 200 to 41,800 in the month. This marked the highest number of approvals for remortgaging since October 2022, when there were 50,000.

June’s net borrowing of mortgage debt by individuals increased by £3.1bn to reach £5.3bn in the month. This followed the £2.8bn increase of net borrowing to £2.2bn which the BoE reported in May.

The latest figures also showed that the annual growth rate for net mortgage lending climbed from 2.6% to 2.8% in June, while gross lending increased to £23.9bn, from £20.6bn in May.

“It’s positive to see another monthly increase in mortgage approvals, even if it’s only marginal,” CEO of Just Mortgages and Spicerhaart, John Phillips, commented.

“While the summer period may slow things slightly, it’s encouraging to see some momentum building in the mortgage market, with prospective buyers and movers buoyed by ever-growing innovation among lenders and an increasing spotlight on improving affordability and access to new mortgages.

“Although the jury may still be out on its decision, all eyes will be on the MPC meeting next month and whether we see another cut to the base rate.”

Senior director of risk at Broadstone, Richard Pinch, added: “Mortgage borrowing doubled in June thanks to rates continuing to edge down and as buyers reached the end of the typically busy spring period.

“Despite ongoing market uncertainty, the direction of travel for mortgage rates appears to be downward at least in the short-term which should support sentiment when we reach the autumn.

“Meanwhile, the ongoing efforts of the FCA to ease regulation in the mortgage market to support homeownership should also drive increased lending once those reforms begin to take effect.”

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