# Mortgage lending increases despite elevated rates for homeowners

By Sarah Coles — 2026-07-29

Sarah Coles, head of personal finance at AJ Bell, said: “Mortgage approvals for new purchases rose slightly in June. This is likely to owe something to the fact the Iran peace deal was announced on June 23, which depressed oil prices, lowered inflation expectations and started a retreat for mortgage rates. It meant buyers ended the month in a better position. However, approvals are still pretty sluggish, so this isn’t exactly a busy market – it’s just a slightly less deathly one.

“In July, mortgage rates remain volatile, and affordability is still an issue – particularly in pricier parts of the country. It means some buyers will decide to take a summer break, especially as house prices are falling in some parts of the country, so hanging on for a while could get them a better deal. If you’re playing the waiting game, it’s worth using the opportunity to put yourself in the best possible position to buy – whether that’s by topping up a Lifetime ISA for this year or beefing up your emergency savings fund ready for the first expensive months after a move.”

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