Net mortgage approvals slipped to 61,000 in December, 3,100 less than November’s net total, new Bank of England (BoE) figures have shown.

The central bank’s data revealed that remortgage approvals, by contrast, climbed by 1,600 to 38,400 in December.

The latest Money and Credit report from the BoE also indicated that net borrowing of mortgage debt by individuals during December was unchanged when compared to November, at £4.6bn.

Gross lending decreased by £500m in December to £23bn, while gross repayments fell by £600m to £18.8bn.

The BoE also reported that the annual growth rate for net mortgage lending remained unchanged in December, at 3.4%.

Managing director of capital markets and finance at LiveMore, Simon Webb, said that approvals falling by 3,100 in December is “disconcerting”.

“We were expecting the market to pick up in the wake of the Autumn budget, but the base rate cut that came in mid-December should give borrowing a boost when January figures are released,” Webb said.

Growth director at Target Group, Melanie Spencer, added that having been “buoyed” by the base rate cut in December and predictions of both two more cuts this year, lenders have been “very active” in early 2026.

“Given the current factors in play at home and abroad – along with increasing choice at the higher end of the mortgage market – there’s no doubt that lenders need to stay vigilant,” Spencer commented.

“Not only does it place greater importance on efficient, scalable and tech-enabled solutions and processes, but it places fresh emphasis on servicing and ensuring that lenders have the right capabilities in place – either in-house through digital transformation or outsourced to the right partners.”

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