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.”

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.”