Bank of England data shows net mortgage approvals for house purchases rose to 58,200 in June, up from 56,600 in May, while remortgage approvals also edged higher to 34,200. For landlords, the mixed signal is that activity improved a little, but approvals still remained below the recent six-month average and borrowing costs kept moving the wrong way.
The Bank said net mortgage borrowing jumped to £7.7bn in June from £3.3bn in May, comfortably above the previous six-month average of £4.9bn. Yet the same release shows the market is still not back to normal pace, which matters for landlords weighing whether summer buying and refinancing conditions are genuinely improving or just less weak than before.
The timing matters because recent lender repricing has cut across hopes of a cleaner recovery in buy-to-let finance. If approvals can only grind higher while rates rise, margins remain tight and deal selection matters more than broad market mood.
Approvals improved, but the market is still below trend
The Bank’s June Money and Credit release says purchase approvals were still below the previous six-month average of around 61,400. Remortgage approvals increased, but only modestly. That points to a market that is moving, though without the kind of momentum that would suggest landlords should expect easy refinancing conditions.
The wider rate picture also matters. In the Bank’s linked effective rates data, the actual interest rate on newly drawn secured loans for individuals rose to 4.35 percent in June from 4.22 percent in May. That means more mortgage activity is coming through even as pricing pressure has not fully eased.
Landlords still need to separate activity from affordability
This follows Landlord Knowledge’s Mortgage shelf-life hits two-year low as landlords are urged to lock in rates and Bank of England holds rate at 3.75% as Iran conflict delays spring cut. The latest Bank data fits that picture: demand has not disappeared, but landlords are still operating in a market where lender appetite and borrower affordability are moving at different speeds.
For landlords, the practical lesson is simple. A small rise in approvals does not guarantee better deal economics. The Bank’s June 2026 Money and Credit release shows more purchase and remortgage approvals, but still below recent trend, while its parallel effective-rates data points to higher borrowing costs on new secured lending.
That leaves investors with a narrower margin for error. Those refinancing soon may still benefit from product choice improving versus earlier in the year, but they should not assume a modest approvals bounce means costs are about to fall away quickly.
What this means for landlords
- If you’re remortgaging in the next few months: compare fixes early and stress-test monthly costs against rates staying higher for longer.
- Watch for: whether approvals keep rising in late summer without another jump in effective mortgage rates.
- Bottom line: activity is picking up a little, but affordability is still doing the real work in landlord finance decisions.
Editor’s view
There is a habit in property coverage of treating a rise in approvals as proof the market is back. It is not. For landlords, approvals only matter if the monthly payment still leaves enough room for repairs, tax and void risk after the deal completes.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 30 July 2026
Sources: Bank of England
Related reading: Mortgage shelf-life hits two-year low as landlords are urged to lock in rates
