UK mortgage approvals totalled £77.4 billion in the second quarter of 2026, representing an 11% increase on the first three months of the year, according to Bank of England data.
The figure is also 31.7% higher than the same period in 2025, when changes to Stamp Duty thresholds were implemented.
High loan-to-value lending increases
The share of mortgage advances with loan-to-value ratios exceeding 90% rose 0.4 percentage points from the previous quarter to 8.4%. This marks the highest proportion since 2008 and is 1.4 percentage points higher than a year ago.
Rachel Springall, Finance Expert at Moneyfacts, said: “The rise in the proportion of mortgages above 90% loan-to-value has reached its highest level in 18 years, showing just how vital low-deposit borrowing has become in the housing market.”
She added: “Saving a large deposit is a daunting task for many borrowers, so it is essential that lenders continue to adjust their affordability criteria fairly and create innovative products to help borrowers.”
Buy-to-let share declines
The share of buy-to-let mortgages approved decreased by 0.9 percentage points from the previous quarter to 8%, the lowest level since 2024 and 1.2 percentage points down on the previous year. The decline comes as specialist lenders continue to support buy-to-let transactions in major markets.
The quarterly figures contrast with more recent monthly data, which showed mortgage approvals fell to 56,100 in July, down from 58,200 in June.
Nathan Emerson, Chief Executive of Propertymark, said: “When looking at the year to date, we have seen a myriad of complications within the economy that were largely unexpected at the very start of the year. From a consumer viewpoint, affordability has rightly been in sharp focus; however, it is extremely welcome news to see the value of gross mortgage advances increase during the second quarter of 2026.”
Market outlook
The data suggests borrower activity strengthened during the spring and early summer months, though the subsequent decline in July approvals indicates uncertainty about sustained momentum. The increase in high loan-to-value lending reflects ongoing challenges around deposit accumulation for first-time buyers and those with limited equity.
The quarterly improvement in mortgage volumes follows broader trends in the property sector, where transaction levels have shown variability throughout 2026 amid economic headwinds.
