Mortgage approvals for house purchases also rose to approximately 64,200, marking the highest figure since March 2025, indicating a growing demand for home purchases.

Zoopla reported an 8% increase in sales agreed compared to last year and an 11% rise in active buyers, reflecting unusually high housing market activity for the early summer.

However, despite the increased activity in the housing market, house price inflation is slowing, with expectations that demand for mortgages will continue throughout the year.

Experts anticipate that changes in mortgage regulations will facilitate more lending to both first-time buyers and existing homeowners, particularly if interest rates decrease further.

In June 2025, remortgaging approvals surged to their highest level in over two and a half years, with 41,800 approvals recorded, surpassing the previous high of around 50,000 in October 2022.

This increase in mortgage activity is partly attributed to borrowers actively seeking better remortgage deals, even if it means switching lenders.

Many mortgage lenders have relaxed their borrowing rules, allowing some borrowers to qualify for larger loans, which has contributed to the uptick in mortgage demand.

Consumer credit growth also rose to 6.7% in June, with credit card borrowing increasing to 9.7%, suggesting that households are relying on credit for daily expenses amid rising remortgage payments.

Despite the improvements in mortgage approvals, figures remain relatively stable compared to historical averages, according to Sarah Coles from Hargreaves Lansdown.

Predictions suggest that mortgage demand will gradually increase as households gain confidence in their finances and the economy.

In June, household deposits with banks increased by £7.8 billion, partly influenced by speculation around potential changes to cash ISA limits.

In June, UK non-financial businesses repaid £2.5 billion in loans, marking a significant shift in borrowing trends, particularly among large businesses.