Net mortgage approvals for house purchase fell by 3,100 to 61,000 in December 2025, according to the latest Bank of England (BoE) Money and Credit report.

Remortgaging approvals rose by 1,600 to 38,400, while net borrowing of consumer credit by individuals fell to £1.5 billion from £2.1 billion in November.

Other types of consumer credit, such as personal loans, dropped to £0.8 billion from £1.2 billion.

Quilter mortgage expert Karen Noye said: “Both the Bank of England Money and Credit statistics and HMRC’s property transaction data point to a housing market very much in a holding pattern.

“There are early signs of easing on pricing, with the effective rate on newly drawn mortgages edging down to 4.15%.

“Markets are currently pricing in the potential for two or three base rate cuts over the course of this year. If that materialises, mortgage rates should gradually drift lower, which could improve affordability and encourage more people to move. Even small reductions can make a meaningful difference to monthly repayments and stress test calculations.”

Estate agent and former RICS residential chairman Jeremy Leaf said: “In our offices, we have noticed the market is on the move and certainly since a particularly quiet December.

“Mortgage approvals always prove to be a reliable indicator of future market direction but it was no surprise that the Bank of England numbers were a little lower last month bearing in mind the hit to confidence from the Budget uncertainty.”