READ MORE: Mortgage activity picks up, but uncertainty may stamp out green shoots
Brokers report a noticeable uptick in enquiries from both first‑time buyers and home movers seeking to fix their repayments while headline rates remain below the peaks reached after the 2022 mini‑Budget. Intermediaries say that, although rates are well down from those crisis levels, the direction of travel in funding costs over the past month has prompted a fresh wave of applications from clients who had been waiting on the side‑lines for clearer evidence of rate cuts.
The approvals data suggest that this shift in sentiment is starting to show up in the official numbers. A level above 63,000, while still below the boom‑era norms of more than 70,000 a month, is materially stronger than the lows recorded last year and more in line with a modestly recovering market. Many lenders have been reporting increased new business pipelines since late winter, helped initially by aggressive rate cuts in January and February as competition returned to the high street.
Now, however, the balance of risk has turned. Markets are questioning how quickly the Bank of England can loosen policy without reigniting inflation, and that uncertainty is filtering through to mortgage desks. Several major lenders have already nudged up selected fixed‑rate products or withdrawn their cheapest deals, and the approvals surge in March may partly reflect borrowers bringing forward decisions in anticipation of further repricing.
