Mortgage activity picked up in June 2026, but borrowing costs also moved higher. Bank of England Money and Credit figures show house purchase mortgage approvals, net of cancellations, rose to 58,200 in June, from 56,600 in May. They were still below the previous 6-month average of around 61,400. The effective interest rate on newly drawn mortgages increased to 4.35%, from 4.22% in May.
For buyers, a busier market does not automatically mean borrowing is easier or more affordable. Before applying, check your budget, deposit, documents and wider costs.
Buyer checklist
| Area | What to check | Why it matters |
|---|---|---|
| Affordability | Income, spending, credit and dependants | These affect borrowing |
| Deposit | Savings, gifts and source of funds | Lenders may need proof |
| Mortgage cost | Rate, fees, term and total repayable | Lowest rate may not suit |
| Documents | Payslips, statements, ID and tax records | Missing items delay you |
| Property | Valuation, lease and legal checks | Criteria still apply |
Check what you can afford
A lender will usually assess income, spending, commitments, deposit and the property. Borrowing may be affected by loans, credit cards, childcare, overtime, bonuses, self-employed income or planned retirement.
If you are buying for the first time, first-time buyer mortgage advice can help you understand the process. You can also read about mortgage advice and buyers advice.
Look beyond the headline rate
A lower rate is not always the most suitable option. Consider arrangement fees, valuation costs, legal fees, early repayment charges, product conditions, repayment method, term and total amount repayable.
Mortgage language can be confusing, so the mortgage jargon buster may help. A mortgage adviser in Essex can explain options available through their service, but any recommendation should depend on your circumstances, affordability and lender criteria.
Prepare documents early
Before applying, check payslips, bank statements, proof of deposit, identification and address evidence. If you are self-employed, you may need accounts, tax calculations or tax year overviews.
An agreement in principle can indicate what a lender may lend, but it is not a mortgage offer and does not guarantee approval.
You may also need conveyancing, home insurance and suitable protection, such as life insurance, critical illness cover or income protection. Protection policies have terms, conditions, exclusions and eligibility requirements.
If you already own a home
If you are moving, review early repayment charges, whether your mortgage can be transferred and what extra borrowing may cost. You can read about home mover mortgages or, if your deal is ending, a remortgage review may help.
FAQs
Did mortgage approvals rise in June?
Yes. House purchase approvals increased in June, although they remained below the previous 6-month average.
Does this mean lenders are approving more easily?
Not necessarily. Lenders still apply affordability checks, credit assessments and property valuations.
Why do borrowing costs matter?
They can affect monthly repayments, affordability and the total amount repayable.
Should I apply quickly before costs change?
Not without checking your position. A rushed application may not suit your circumstances.
Can Alexandra Hamilton help me review my options?
You can read why use a mortgage broker, complete a mortgage enquiry or contact Alexandra Hamilton to discuss your circumstances. Any recommendation would depend on your needs, affordability and available products.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The precise amount will depend upon your circumstances and will be agreed with you before proceeding, but we estimate this to be £995.
The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.
