Britain’s expected mortgage market recovery has failed to materialise, with stubborn borrowing costs and economic uncertainty continuing to weigh on homebuyers.
Mortgage Advice Bureau (MAB) said the housing and mortgage market had become more challenging over the summer, prompting it to cut its profit expectations for the year.
The group said the easing in interest rates and gradual recovery in house purchases widely anticipated at the beginning of 2026 had not happened.
UK home purchase transactions were 3% lower during the first seven months of the year, while mortgage approvals for house purchases fell 15% year-on-year in July.
MAB said global developments had added to uncertainty over inflation and the future path of borrowing costs and warned it did not expect a meaningful recovery in purchase activity in the short term.
Instead, the mortgage market remains dominated by existing homeowners refinancing as fixed-rate deals expire.
FSTE100
The UK's flagship share index, the FTSE 100, was down nine-points at 10,802 shortly after opening this morning.
Brent crude oil futures were up 2.19%, sitting at $100.06 barrel this morning.
Companies reporting
- Energean - Half Year Results
- Spire Healthcare Group - Half Year Results
- WAG Payment Solutions - Half Year Results