Net mortgage approvals for house purchases in the UK, a key indicator of future borrowing, rose to 63,032 in May 2025, up from an upwardly revised 60,656 in April and well above market expectations of 59,750. The stronger-than-expected rebound suggests the housing market is recovering swiftly following the expiration of a homebuyer tax break in April. Meanwhile, approvals for remortgaging (limited to borrowers switching to a different lender) climbed by 6,200 to 41,500 - the largest monthly increase since February 2024. The ‘effective’ interest rate on newly drawn mortgages edged down to 4.47% in May from 4.49% in April, while the rate on outstanding mortgage balances inched up to 3.87% from 3.86%.