M4Lex net lending reaches highest level since September 2022

Sterling net lending to private sector companies and households was £18.9 billion in June 2025, up from £8.5 billion in May, according to the Bank of England's Money and Credit release published on 29 July 2025¹. The Bank said this was the highest net lending since September 2022, when the figure was £25.2 billion¹.

The June flow was driven by increases of £10.3 billion in net lending to non-intermediating other financial corporations (NIOFCs), £5.0 billion to households and £3.5 billion to private non-financial corporations (PNFCs)¹. The net flow of sterling money, M4ex, was £11.3 billion in June, compared with £5.6 billion in May, with households increasing their money holdings by £7.8 billion¹.

Within household borrowing, net borrowing of mortgage debt rose by £3.1 billion to £5.3 billion in June, after a £2.8 billion increase to £2.2 billion in May¹. Net mortgage approvals for house purchases increased by 900 to 64,200, and approvals for remortgaging rose by 200 to 41,800, which the Bank said was the highest number of remortgaging approvals since October 2022 (50,000)¹. Net borrowing of consumer credit rose to £1.4 billion from £0.9 billion, with credit card borrowing up to £0.7 billion from £0.2 billion and other consumer credit broadly unchanged at £0.7 billion¹.

The effective interest rate on newly drawn mortgages fell for the fourth consecutive month, to 4.34% in June from 4.47% in May, while the rate on the outstanding stock of mortgages rose slightly to 3.88% from 3.87%¹. The effective rate on new personal loans fell by 30 basis points to 8.42%, and the rate on interest-charging credit cards fell by 5 basis points to 21.49%¹.

On business borrowing, UK non-financial businesses repaid, on net, £2.5 billion of loans to banks and building societies in June, compared with £8.6 billion of net borrowing in May¹. Large non-financial businesses repaid £2.8 billion on net, which the Bank said was the highest net repayment from large businesses since June 2023¹. The annual growth rate of borrowing by large businesses fell to 6.7% from 8.5%, while the rate for small and medium-sized businesses rose from -0.2% to 0.3%¹.

Source: Bank of England, Money and Credit, June 2025¹. May figures for approvals are derived from the reported June increases.

Why it matters for households

The figures describe borrowing and saving that has already happened in June 2025, not the terms available now. For households with a mortgage, the effective rate on new mortgages fell to 4.34% in June, the fourth monthly fall, while the average rate on the existing stock of mortgages edged up to 3.88%¹. Remortgaging approvals reached their highest level since October 2022, which indicates more borrowers were arranging new deals with a different lender in June¹.

Households added £7.8 billion to their money holdings in June, including £3.6 billion into ISAs and £1.2 billion into interest bearing sight accounts¹. The effective rate on new time deposits rose by 10 basis points to 4.02%, while the rate on the outstanding stock of sight deposits fell to 1.91% from 1.96%¹. On borrowing costs, the effective rate on interest-charging overdrafts fell by 5 basis points to 22.23%¹.

What happens next

The Bank of England's next Money and Credit release is due on 1 September 2025¹. No further dates are given in the release. The Bank said these monthly statistics are used by its policy committees to understand economic trends and developments in the UK banking system¹. Broader context on interest rates and the economy is covered in the rates and economy guide.