Bank of England data shows mortgage approvals for house purchases fell to 56,200 in May, the lowest level since December 2023, as borrowing costs rose and buyer caution fed back into the market.
The central bank also said net borrowing of mortgage debt dropped to £2.9 billion from £4.4 billion in April, while remortgage approvals fell sharply to 33,300 from 51,200. The effective rate on newly drawn mortgages rose to 4.22 percent in May from 4.08 percent a month earlier.
For landlords, the figures matter because weaker mortgage activity usually means a softer sales market, slower purchase pipelines and a more price-sensitive refinancing backdrop. That can help some investors negotiate on acquisitions, but it also shows how quickly rate moves can cool demand across the wider housing market.
Approvals slide as mortgage costs bite
The Bank said net mortgage approvals for house purchases fell from 66,000 in April to 56,200 in May, leaving approvals below the previous six-month average of 63,300. It was the weakest reading since December 2023, when approvals stood at 52,600.
Net borrowing of mortgage debt also eased back to £2.9 billion, the lowest since May 2025. At the same time, approvals for remortgaging with a different lender fell to 33,300 from 51,200 in April, suggesting households were slower to refinance as pricing worsened earlier in the spring.
The latest release adds a fresh hard-data check on the rate turbulence landlords have been watching for months. Average mortgage pricing moved up through the early part of 2026 before beginning to ease again, and the May figures capture the point where that higher cost of debt fed through into lower activity.
Why the slowdown matters for landlords
For buy-to-let investors, the immediate read-across is not just about owner-occupier demand. A weaker purchase market can lengthen sale times, widen discounts and leave more stock sitting unsold for longer. That can create buying opportunities for landlords with finance ready, even as it makes refinancing and onward sales more sensitive to rate movements.
This follows Landlord Knowledge’s report on the FCA’s mortgage rule review, which examined whether looser affordability rules could widen the buyer pool later this year. The latest Bank of England figures suggest that, for now, higher borrowing costs are still doing more to restrain demand than regulatory changes are to support it.
Landlords also have to read the approvals data alongside lender behaviour. Recent repricing by major buy-to-let lenders, including The Mortgage Works’ latest rate cut for limited company borrowing, shows competition is still active. But the Bank’s figures are a reminder that demand can cool faster than pricing improves.
There is also a timing point here. If mortgage rates continue to ease over the summer, May may prove to be a low point before demand steadies. If not, landlords should expect slower transaction flows and a more hesitant autumn market.
Full details are set out in the Bank of England’s Money and Credit – May 2026 release.
What this means for landlords
- If you’re buying: slower approvals can mean less competition and more room to negotiate on price.
- If you’re remortgaging: keep watching lender repricing closely, because product choice may improve before headline market demand does.
- Watch for: whether summer approvals recover as rates ease – that will shape how strong the autumn market looks.
- If you’re planning a sale: build in more time, because weaker approval numbers often feed through into longer transaction pipelines.
- Bottom line: the market is not seizing up, but higher mortgage costs are still clearly holding activity back.
Editor’s view
These figures will not shock landlords, but they do cut through the wishful thinking. Rate relief is helping at the margin, yet the Bank’s own data shows the spring squeeze still had enough force to knock demand lower.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 30 June 2026
Sources: Bank of England
Related reading: BoE: mortgage approvals rise but borrowing cools in April
