The Bank of England says net mortgage approvals for house purchases fell to 54,900 in August, down from 55,900 in July, while the effective rate on newly drawn mortgages rose to 4.60 percent from 4.45 percent.
The Bank’s latest Money and Credit release also records 34,000 remortgaging approvals in August, down from 34,600 a month earlier. Its approvals series is net of cancellations and covers house purchases across the market, rather than buy-to-let lending alone.
Landlords weighing a purchase or refinance face a quieter lending backdrop just as actual borrowing costs are moving higher. A lower approvals figure does not set a buy-to-let rate, but it is a timely check on the affordability pressure surrounding tenant demand, sale prices and remortgage decisions.
Purchase approvals fall below the recent average
The August total was below the 60,100 average over the previous six months. The Bank describes purchase approvals as an indicator of future borrowing, so the data points to softer activity before completed transactions appear in housing-market statistics.
Gross secured lending also fell to £23.6 billion from £25.3 billion in July, while repayments eased to £20.4 billion. Net mortgage borrowing nevertheless rose to £4.4 billion, from £4.1 billion, showing that the monthly flow of borrowing and the number of new approvals can move in different directions.
This follows Landlord Knowledge’s July report on mortgage approvals, when the Bank recorded 58,200 approvals in June. The new figure puts the market below that level and below the latest six-month average, giving prospective landlords more reason to test local resale values and rental demand rather than rely on a broad national headline.
Remortgaging approvals also decline
The remortgaging measure only captures borrowers moving to a different lender. It does not include every product transfer, which means it should not be treated as a complete count of landlords refinancing at the end of a fixed deal.
Still, the fall from 34,600 to 34,000 comes alongside a rise in the effective rate paid on newly drawn mortgages. That 4.60 percent measure covers all new mortgages and is not a quoted buy-to-let product rate, but it confirms that funding costs were rising in August.
Earlier Landlord Knowledge coverage of the Bank Rate decision set out why fixed pricing can diverge from the official rate. The August release adds a practical warning: landlords coming off a deal should compare product transfers, external remortgages, fees and stress-tested rental coverage using current offers, not an average rate from a wider borrower group.
What the Bank’s figures do and do not show
The Bank of England’s August Money and Credit release provides the underlying data. It does not split the purchase-approval total into owner-occupier and buy-to-let borrowing, nor does it say how individual lenders will price their next range.
The landlord angle is therefore one of market conditions, not a claim that 54,900 approvals equals a fall in buy-to-let demand. With purchase activity softer and funding costs higher, the value of a deal depends more heavily on the property, rent, deposit, tax position and the lender’s current affordability test.
What this means for landlords
- If you are buying: treat weaker purchase approvals as a prompt to review local comparables and achievable rent, not as proof that every seller will cut a price.
- If you are refinancing: compare a product transfer with a full remortgage early, because the Bank’s remortgaging series excludes many transfers.
- Watch the full cost: rate, fees, loan-to-value and rental-coverage requirements can change the result more than a headline average.
- Keep the timing clear: the release describes August activity, while any lender decision must use live product terms.
- Bottom line: lower approvals and higher new-mortgage rates make careful deal-by-deal underwriting more important this autumn.
Editor’s view
The useful part of this release is not a prediction of a property crash. It is a reminder that transaction momentum and finance costs are moving in the wrong direction at the same time. Landlords with a clear yield and exit plan will be better placed than those relying on a national average.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 30 September 2026
Sources: Bank of England
Related reading: BoE: mortgage approvals rise to 58,200 but stay below trend
