I’ve been looking at the latest mortgage figures from the Bank of England, and they make for interesting reading if you’re thinking about buying a home or remortgaging.
In July 2026, the number of mortgage approvals for house purchases fell to 56,100, down from 58,200 in June and below the previous six-month average of around 60,800.
At the same time, consumer credit borrowing increased to £2.0 billion in July, compared with £1.9 billion in June.
So, what does this tell us?
The mortgage market isn’t straightforward
I don’t think it’s as simple as saying that increased borrowing is the reason mortgage approvals have fallen. The Bank of England doesn’t make that connection, and there are a number of factors affecting the mortgage market.
But I do think the figures highlight something I see regularly in my work as a mortgage adviser:
People’s financial circumstances aren’t always straightforward.
For some people, getting a mortgage is relatively simple. They have a good credit history, stable income, a suitable deposit and no significant existing financial commitments.
But that’s not everyone’s situation.
I speak to people who have existing debts, missed payments, defaults, CCJs, unusual income patterns or other circumstances that can make a standard mortgage application more difficult.
And that’s where things can become more complicated.
Existing debt can form part of the picture
When you’re applying for a mortgage, it’s important to look at your overall financial position rather than simply focusing on your salary and deposit.
Existing borrowing and monthly commitments can affect affordability.
And sometimes people have taken on additional credit because of circumstances outside their control – perhaps an unexpected expense, a period of reduced income or simply a difficult period financially.
That doesn’t automatically mean they can’t get a mortgage.
It does mean I need to understand the circumstances properly before looking at potential lenders.
I’ll want to understand things such as:
- What borrowing do you currently have?
- What are the monthly repayments?
- How has your credit history developed?
- Have you had any missed payments or defaults?
- When did any credit problems happen?
- Has your financial situation improved since then?
- What is your current income?
- How much deposit do you have?
- What are you hoping to achieve?
The answers to those questions can make a big difference.
The FCA is reviewing the mortgage rules
There’s another reason I think this is an interesting time to be talking about mortgages.
The Financial Conduct Authority (FCA) is currently reviewing mortgage rules, including whether some creditworthy borrowers are being prevented from accessing suitable mortgage products.
Its consultation specifically considers people who can sometimes find the mortgage process more difficult, including those with past credit difficulties, variable or irregular income and older borrowers.
The FCA has recognised that the current rules may prevent some creditworthy consumers from accessing suitable mortgages. Its consultation closed in July 2026, with a policy statement expected in the second half of the year.
For me, this is an important conversation.
Because having something in your financial history that isn’t perfect doesn’t necessarily mean you aren’t a creditworthy borrower today.
Your credit history is only part of the story
This is something I talk about with clients quite a lot.
I’ve worked with people whose financial difficulties started with something that might initially seem quite minor – perhaps a missed utility bill or mobile phone payment.
If payment problems continue, they can potentially develop into a default. A default will generally remain on your credit file for six years from the date it was recorded.
That can mean something that happened several years ago is still relevant when you come to apply for a mortgage.
But it doesn’t necessarily mean the door is closed.
Different lenders have different criteria, and they don’t all assess an application in exactly the same way.
That’s why I don’t believe in simply looking at a credit score and deciding whether someone can or can’t get a mortgage.
I want to understand what happened, why it happened and what your finances look like now.
Don’t make multiple applications before getting advice
If you’re worried about your credit history or your existing borrowing, one of the things I’d recommend is getting advice before making lots of mortgage applications.
Applying to lender after lender isn’t necessarily the best approach.
Instead, I’d rather understand your circumstances first and then look at which lenders may be able to consider your particular situation.
That’s particularly important if you’ve had a default, CCJ, missed payments or other credit issues.
It can also be useful if your income or employment circumstances aren’t straightforward.
A more complicated situation doesn’t necessarily mean no
The latest Bank of England figures show that the mortgage market is changing, while the FCA is looking at whether the current rules work for all creditworthy borrowers.
At the same time, many households are managing different forms of borrowing and financial commitments.
For me, that reinforces why specialist mortgage advice can be valuable.
Sometimes the answer isn’t simply yes or no.
It’s about understanding the full picture and finding a lender whose criteria may fit your circumstances.
At Custom Mortgages & Finance, we help clients whose circumstances don’t always fit the standard mortgage application.
If you’re worried that your credit history, existing debt or financial circumstances could prevent you from getting a mortgage, I’m always happy to have an initial conversation.
You might be surprised by what could be possible.
Your circumstances might be more complicated than average. That doesn’t necessarily mean getting a mortgage is impossible.
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