UK mortgage approvals up 11% in Q2 2026 — high-LTV lending hits 18-year high

Our take

This is a UK-market story, so South African buyers and landlords won't feel it directly in their bond statements — but there are useful signals worth tracking. The surge in high loan-to-value lending (above 90%) to an 18-year peak tells us something important: where affordability is stretched, first-time buyers increasingly depend on low-deposit products to get onto the ladder. SA faces a structurally similar challenge. With property prices in Cape Town and Johannesburg still elevated relative to household incomes, and the prime lending rate only gradually easing, South African first-time buyers are equally reliant on 100% bond applications and developer deposit-assistance schemes. Local lenders have shown appetite for higher-LTV lending when applicants are well-qualified, but affordability criteria remain tight. The UK buy-to-let retreat is also a familiar theme — rising costs and regulatory pressure have cooled landlord appetite there, much as higher bond repayments and the Rental Housing Act's compliance requirements have made some SA landlords reconsider their portfolios. For SA agents and bond originators, the broader lesson is clear: as deposit-saving becomes harder, guiding clients through pre-qualification and credit-readiness early in the process is more valuable than ever.