The number of mortgage approvals fell for the fifth month in a row in January, according to Bank of England figures, to reach the lowest monthly total since May 2020.

Fewer approvals

The Bank said that, excluding the pandemic and its immediate aftermath, January’s total was the lowest for approvals since January 2009. Around 39,600 mortgages were approved for house purchase in January 2023, down from 40,500 in December. With mortgage approvals on the slide, what’s the latest state of play for rates?

Stable rates

Having soared above 6% last September, lenders have recently been lowering the rates of five-year fixed deals below 4%. Although higher than a year ago, there is much more stability in these rates compared to the chaotic scenes that followed the ‘mini Budget.’ With house prices still predicted to fall by the end of the year, mortgage approvals could pick up in the ensuing buyers’ market.

Stick or twist?

Fixed-rate mortgages are great at providing certainty about what you’ll pay. When rates rise, those with fixed deals are protected. The downside, of course, is that should rates start to fall then you could end up locked in at an above-average rate.

If you’re looking to mortgage, or re-mortgage, we’re here to help you through the complexities of the market to find the most suitable option for your unique needs.