Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.
Mortgage Approvals Up, Buy-to-Let Share Down in Q2 2026
New figures from the Bank of England reveal that the total value of mortgages approved in the UK rose by 11% in the second quarter of 2026 compared to the first three months of the year. The total value for April to June reached £77.4 billion, which is also 31.7% higher than the same period in the previous year, when Stamp Duty thresholds changed.
The data also shows a shift in the types of mortgages being approved. The share of mortgage advances with loan-to-value (LTV) ratios above 90% increased by 0.4% from the previous quarter, reaching 8.4%. This is the highest proportion since 2008 and 1.4% higher than a year ago, indicating a rise in low-deposit borrowing.
For letting agents and inventory clerks, the most notable change is in the buy-to-let sector. The share of buy-to-let mortgages approved fell by 0.9% from the previous quarter to 8%, marking the lowest level since 2024. This figure is also 1.2% lower than the same period last year.
Despite the strong second quarter, more recent Bank of England data showed a decrease in mortgage approvals in July, with 56,100 mortgages agreed, down from 58,200 in June.
These trends may impact the rental market and property management, as changes in buy-to-let mortgage activity can influence the availability of rental properties and the dynamics of the private rented sector.
Source: The Negotiator