The latest Bank of England Money and Credit data paints a nuanced picture of the UK housing market. While net borrowing rose to £4.8bn, signalling continued buyer activity, mortgage approvals remain below trend, highlighting a market that is active but increasingly selective.
Industry experts note below that demand persists, but borrowers are acting more deliberately, weighing affordability and timing before committing. For brokers, these conditions underscore the importance of guidance: navigating higher rates, fluctuating approvals, and remortgaging opportunities will be crucial to help clients make informed decisions in a market that is far from uniform.
Mark Harris, chief executive of mortgage broker SPF Private Clients, says:
“Mortgage approvals picked up in February, demonstrating an underlying resilience to the housing market which really started to make itself apparent once the Budget was in the rear-view mirror.
The effective interest rate paid on new mortgages increased slightly to 4.10 per cent, and the rate on the outstanding stock of mortgages also increased to 3.95 per cent. Affordability concerns remain, and we expect to see a sharp jump in these average rates in March’s report.
Remortgaging numbers increased, suggesting that borrowers coming off low rates are mostly still shopping around for the best rate possible rather than opting for the ease of sticking with their existing lender. We expect this to increase in the coming days and weeks as the pricing of new fixed-rate mortgages continues to rise.”
Nathan Emerson, CEO of Propertymark, comments:
“With today’s figures reflecting February’s activity, it’s encouraging to see sustained momentum across the mortgage market during this period. This suggests that improving affordability and greater lender confidence were beginning to translate into real buyer activity.
However, the outlook is far from certain. Escalating geopolitical tensions are likely to feed through into inflationary pressures and base rate expectations, which could quickly dampen borrowing conditions and slow approval volumes in the months ahead.
As a result, both buyers and sellers are navigating a more complex landscape, where financial due diligence and timing are becoming increasingly critical to decision-making.
Nonetheless, the housing market remains a cornerstone of the UK economy, and a return to greater stability and confidence will be key to maintaining transactional momentum as the year progresses.”
John Phillips, CEO of Just Mortgages and Spicerhaart, said:
“Today’s figures paint a nuanced picture. On the one hand, a rise in net borrowing to £4.8bn points to buyers continuing to push on with transactions. On the other hand, approvals, while up on the month, remain below trend, showing a level of hesitation that hasn’t fully disappeared.
These figures reflect a market that’s active, but more selective. Demand hasn’t gone away; it’s become more deliberate. Those who need to move are getting on with it, while others are taking longer to commit as they weigh up affordability and timing.
For brokers, this is exactly where advice matters most. The market is neither fully accelerating nor stalling; helping clients navigate complexity and act with controlled confidence is what will keep transactions flowing.”
