Mortgage approvals surged in April, demonstrating that “first-time buyers are taking advantage of a more negotiable market” – yet experts cautioned that “on the ground today, the mood is far more cautious“.

According to Bank of England data released this week, net mortgage approvals for house purchases climbed to 65,900 in April, surpassing the six-month average of approximately 63,100. Approvals for remortgaging remained largely stable compared to March.

Meanwhile, net borrowing of mortgage debt by individuals decreased to £4.4 billion in April, from £6.8 billion in March, below the previous six-month average of £5.1 billion. This follows Nationwide’s House Price Index revealing that UK annual house price growth eased to 1.7% in May, down from 3% in April – with house prices falling 0.6% month on month, marking the first monthly decline of the year.

Ranald Mitchell, director of Norwich-based bad credit mortgage specialists Charwin Mortgages, noted that the figures pointed to first-time buyers returning to the market.

He added: “April’s rise in mortgage approvals shows buyers are back in the game, but not throwing caution to the wind. First-time buyers are taking advantage of a more negotiable market, lenders are competing harder on affordability, and borrowers are finally accepting that waiting for perfect conditions is a losing strategy. This is not a boom, but it is a healthier, more functional mortgage market.”

Thomas Boughton, founder of London-based Artillium Real Estate Finance, revealed that April proved to be a particularly hectic period for his firm.

He added: “April was particularly busy, reflecting growing acceptance that interest rates are likely to remain volatile. Rather than waiting for ideal conditions, many people are choosing either to continue renting or move forward with a purchase instead of shopping around for interest rates.

“Lenders are becoming more flexible with increased use of technology to improve efficiency and a more pragmatic approach to cases slightly outside standard criteria. This reflects a broader shift in borrower profiles, with previously ‘higher risk’ cases becoming more commonplace as lenders adapt.

“While enquiry levels are at record highs, this has not always translated into more applications. Instead, clients are seeking advice and clarity earlier, allowing us to help them understand their options, plan ahead, and make more informed decisions with confidence. Clients are leaning more on our professional outlook of the market when making decisions more than ever.”

Meanwhile, Darryl Dhoffer, founder of Bedford-based The Mortgage Geezer, noted that sentiment was “more cautious” now compared to April.

He added: “The April spike is a rearview mirror metric reflecting the brief window of cheaper fixed rates back in January and February. First-time buyers, driven by skyrocketing rents, jumped in early to lock in lower rates. However, the drop in net borrowing to £4.4 billion shows buyers are choosing cheaper properties or using larger deposits to pass tough affordability tests.

“On the ground today, the mood is far more cautious. The early year momentum has slowed. With mortgage rates creeping back up buyers face a harsh reality check. While official numbers look rosy, the current market is highly price sensitive.

“Chains are brittle and down-valuations are common; deals only cross the finish line when sellers drop expectations. Nationwide’s recent 0.6% house price drop reflects the true street reality, a grinding market where closing deals requires twice the effort.”

Manooch Suree, director at Uxbridge-based Zinga Financial Services, said confidence was on the rise across the housing market.

He added: “The rise in approvals in April is largely a confidence story. Buyers, particularly first‐timers, are sensing that the window of opportunity is still open. House prices have softened in many areas, lenders have been competing harder on rates, and people who sat on their hands through last year’s volatility are now re‐entering the market.

“It’s not a surge, but it’s a clear sign that sentiment is improving. First‐time buyers are definitely a big part of the movement. Many of them are taking advantage of a calmer market where they’re not having to bid against ten other buyers. They’re also adjusting to the ‘new normal’ for interest rates, once people accept that 1% mortgages aren’t coming back, they start making decisions again.

“We’re also seeing more activity from movers who delayed plans during the rate spikes. Some borrowers who secured lower‐rate offers earlier in the year are now pushing ahead before those offers expire, which has helped lift April’s numbers.”

Louis Mason, content and communications director at London-based Oportfolio Mortgages, revealed that a growing number of prospective buyers were opting to press ahead rather than sit on the fence.

He added: “The increase in approvals in April feels like a mix of improving confidence, more competitive lenders, and buyers realising the market may finally offer a bit of breathing room again. We’re definitely seeing more first-time buyers returning.

“After the volatility of the last two years, many are treating the current market a bit more boldly. It’s not perfect conditions, but probably safer to move now than wait forever. Lenders have also become more flexible, with improved affordability models and higher income multiples helping buyers access larger loans, particularly in London, where house prices still behave as though they’ve never heard of inflation.

“The drop in borrowing after March isn’t too surprising either, as March was boosted by buyers rushing to complete before stamp duty changes. On the ground, the market feels busy but sensible. Buyers are active again, but far more cautious and financially disciplined than during the ultra-low-rate era.”

Babek Ismayil, chief executive of homebuying platform OneDome, said first-time buyers are once again entering the market.

He added: “One contributor to the rise in mortgage approvals was almost certainly the increased awareness among first-time buyers that current market conditions are a perfect opportunity to get onto the ladder. Yes, mortgage rates are higher than they were a few months ago before the war in the Middle East began, but lenders are improving their affordability and aspiring buyers are in a position to make some punchy offers. First-time buyers are calculating that they can claw back on the asking price the extra money they will pay on a mortgage, and then some.”

Michelle Lawson, director of Fareham-based Lawson Financial, described April as an exceptionally strong month for her firm.

She added: “April was one of our best ever months, so this reflects the data. There are a lot of mortgage maturities with some still to come off the low rates and there was a bit of purchase activity.

“The market has quietened now, but buyers need to see the current climate as an opportunity to negotiate, as the savings on the property price will usually outweigh the extra in monthly payments due to higher interest rates due to the Middle East fallout. This does appear to be calming, so first-time buyers should be looking to buy and make the most of the current timing.”

Andrew Montlake, chief executive of London-based Coreco, insisted the mortgage market continued to confound the sceptics.

He added: “If proof were needed that the UK mortgage market is resilient, this is it. Demand for bricks and mortar continued despite all the geopolitical volatility and lenders are doing their level best to stimulate activity and the supply side.”

Mortgage brokers have welcomed rate reductions from Halifax, but cautioned that “borrowers should not assume rates will continue on a downward trajectory” in the wake of US strikes on Iranian military installations over the weekend, which sent oil prices creeping upwards again on Monday morning. Late on Friday afternoon, Halifax announced it would be slashing its First-Time Buyer and Homemover fixed rates by up to 0.12% and remortgage fixed rates by up to 0.14%.

Gen H also unveiled a further round of rate reductions across its product range on Monday. Its five-year and two-year 60%–80% loan-to-value (LTV) rates will drop by 0.2% and 0.15% respectively from this evening. The lender’s New Build Boost rate will similarly be trimmed by 0.1%.

The reductions come as Nationwide figures reveal house prices declined by 0.6% last month, as the fallout from the Middle East crisis began to weigh heavily on consumer confidence and mortgage rates. Shaun Sturgess, director at Swansea-based Sturgess Mortgage Solutions, praised the cuts, but called on borrowers to remain vigilant rather than take any further reductions for granted.

He said: “When a lender like the Halifax cuts rates, other lenders take note. As we enter a new month, the hope is that rates continue to edge down, but escalating tensions between the US and Iran over the weekend are already sending the oil price higher, which has the potential to apply upward pressure on swap rates that determine fixed-rate mortgage pricing. Gen H announcing cuts on Monday is another positive, but borrowers should not assume rates will continue on a downward trajectory as markets remain volatile.”

Emma Jones, managing director of Runcorn-based Whenthebanksaysno.co.uk, echoed that sentiment: “Halifax announcing cuts on Friday and Gen H this morning gets June off to a good start, but in the current turbulent economic environment lenders can price in the other direction very quickly.”

Omer Mehmet, managing director of Welling-based Trinity Finance, also warned that any reductions could be swiftly reversed: “These cuts are a step in the right direction, but nothing can be taken for granted with markets so on edge and rate reductions can quickly be reversed. The lower rates that some borrowers are holding out for are by no means guaranteed.”

Justin Moy, managing director of Chelmsford-based EHF Mortgages, said: “It’s good to see further cuts from one of the major High Street lenders, as swap rates improve a little and confidence returns with mortgage providers. However, the ‘little and often’ approach creates havoc for both brokers and borrowers, so hopefully we will not see any changes smaller than 0.1% from Halifax or other high street lenders.”

David Stirling, Independent Financial Adviser at Belfast-based Mint Wealth, cautioned borrowers against mistaking what they were seeing as a longer-term shift, warning they shouldn’t “mistake momentum for a trend”.

He continued: “Swap rates are still volatile and what’s available on Monday may not be there by Friday. If you’re sitting on the fence waiting for rates to fall further, you could easily miss the window. If the numbers stack up for you today, then you should act. Lock it in, and then keep one eye on the market.”

Charles Hart, business principal at Milton Keynes-based LionHart Mortgages and Protection, stressed that time was of the essence for borrowers navigating the current market climate: “We have repeatedly seen how fragile and short-lived these wins can be, so acting quickly to secure fresh reduced rates will be key.”

Nouran Moustafa, practice principal and IFA at Roxton Wealth, suggested the impact of the rate reductions would be modest given the prevailing mood of weak confidence and mounting costs: “Halifax cutting rates is good news, but let’s not pretend a 0.12% reduction suddenly fixes affordability. Borrowers are not sitting there thinking, ‘fantastic, my life has changed’.

“They are still dealing with higher monthly payments, tighter criteria, childcare costs, food prices and nervous household budgets. I do not think we are heading into some magical rate freefall. This feels more like careful competition than a market revolution.

“The borrowers who benefit most will be the ones who review early, understand their options and do not just chase the lowest headline rate. A small rate cut helps, but strategy matters more than excitement.”

Nationwide and Virgin Money have joined NatWest, Santander and numerous other lenders in slashing their mortgage rates on Monday. While brokers suggested lenders appear to be gaining confidence, they also cautioned that borrowers should view this as “positive momentum rather than a guarantee cheaper deals will keep coming”.

From Tuesday, Nationwide is trimming selected fixed rates across its First Time Buyer, Home Mover, Existing Customers Moving Home and Remortgage product ranges by up to 0.36%. Virgin has also unveiled some “pretty large” rate reductions, according to one broker.

Throughout its Purchase range, two-year fixed rates will be lowered by up to 0.26%, five-year fixed rates by up to 0.24% and Shared Ownership fixed rates by up to 0.26%. On the remortgage side, two-year Virgin fixed rates will be trimmed by up to 0.24% and five-year fixed rates by up to 0.10%.

Carlo Pileggi, head of mortgage products at Nationwide, said: “We’re pleased to be cutting our mortgage rates once again, with the biggest reductions this time aimed at first-time buyers. Some of our biggest rate cuts are being made on our higher loan-to-value mortgages, which will help those with smaller deposits to take their first step onto the property ladder.”

Brokers welcomed the reductions but warned that conditions remain unpredictable.

Nouran Moustafa, practice principal and IFA at Roxton Wealth, said: “These cuts are welcome, but borrowers should not assume they are guaranteed to last. Mortgage pricing is not only about lender appetite, but is influenced by swap rates, gilt yields and expectations around inflation and the Bank of England base rate.”

“If geopolitical tensions escalate and oil prices move higher, that can quickly feed back into inflation fears and make markets more nervous. That is where cuts become fragile. I do not think borrowers should panic, but I also would not wait forever for a perfect rate.

“If a deal works for someone’s budget and circumstances, it may be sensible to secure it, particularly where the lender allows a product switch before completion if pricing improves. The market is moving in the right direction, but still sensitive to global shocks.

“Virgin, Nationwide, NatWest and Santander cutting rates is encouraging, but until inflation and geopolitical risks calm down, borrowers should see this as positive momentum rather than a guarantee cheaper deals will keep coming.”

Emma Jones, managing director at Runcorn-based Whenthebanksaysno.co.uk, concurred that the current direction of travel on rates was far from guaranteed: “Last week’s momentum has continued into this week, despite no clear evidence that the Middle East conflict is close to being resolved.

“Lenders appear more confident, but people considering buying or remortgaging should not get complacent and assume rates will continue to fall because we have seen how quickly things can turn in recent months.”

Omer Mehmet, managing director at Welling-based Trinity Finance, shared a similar view: “You sense that lenders are keen to boost their business volumes right now, as the way rates are being cut does not entirely sync with geopolitical events, which remain uncertain.”

Dariusz Karpowicz, director at Doncaster-based Albion Financial Advice, welcomed the reductions as “genuinely good news”. He continued: “Lenders are clearly competing again rather than nibbling at the edges, and borrowers on shorter fixes will feel the sharpest benefit.

“That said, Trump calling Iran’s response to his peace plan “totally unacceptable” overnight is exactly the sort of headline that rattles swap rates. Oil spikes feed inflation fears, and inflation fears feed pricing.”

Aaron Strutt, product and communications director at London-based Trinity Financial, characterised the cuts as “pretty large”, while also striking a note of caution.

He said: “It is hard to predict exactly what will happen in the mortgage market over the short term due to the ongoing fluctuating funding costs. Thankfully, there are more lenders offering two-year fixes below 4.5% now and five-year fixes priced at 4.70% or slightly lower.

“The good news is that rates are reasonably priced again in general and the anticipated pricing hikes have not happened yet. HSBC is topping the mortgage best buy tables at the moment.”

Andrew Montlake, CEO at London-based Coreco, a broker, said borrowers would welcome these cuts even though rates are still higher than they were before the war in the Middle East.

He continued: “There’s still quite some way to go before we return to the level rates were at before the conflict, but for now mortgage rates are moving in the right direction, and for some borrowers the reductions now emerging will help ease some of the pressure.”