UK Mortgage Lenders Predict More People Will Want Home Loans in the Coming Months After a Slow Start to the Year

According to a recent survey from the Bank of England released on April 9, 2026, banks and mortgage lenders in the UK are expecting more people to apply for home loans (mortgages) during the second quarter of the year—from April to June. Demand had been fairly flat in the early part of 2026, but lenders now see signs that it could pick up.

This outlook comes even as the housing market feels the effects of higher borrowing costs and uncertainty, partly caused by the war in the Middle East pushing up energy prices and inflation worries. Higher mortgage rates make monthly repayments more expensive, which can put people off buying homes. However, if lenders are right, factors like improving confidence or other economic signals might encourage more buyers to move forward. For everyday people thinking about buying a home, this could mean slightly more activity in the market ahead, but it still depends on how affordable loans remain and whether global events stabilize. The Bank of England tracks these expectations closely as part of monitoring the overall health of the economy and housing sector.