Remortgaging approvals reach highest level since October 2022

Remortgage approvals rose to 41,800 in June 2025, up by 200 on May and the highest number since October 2022, when the figure was 50,000, according to the Bank of England's Money and Credit release published on 29 July 2025¹. The Bank's approvals measure for remortgaging only captures borrowing switched to a different lender, so internal product transfers with an existing lender are not counted¹.

Net borrowing of mortgage debt by individuals increased by £3.1 billion to £5.3 billion in June, after a £2.8 billion rise to £2.2 billion in May. Gross mortgage lending rose to £23.9 billion from £20.6 billion, while gross repayments rose to £18.8 billion from £17.6 billion. The annual growth rate for net mortgage lending rose from 2.6% to 2.8%¹.

The effective interest rate, the rate actually paid, on newly drawn mortgages fell for a fourth consecutive month, to 4.34% in June from 4.47% in May. The rate on the outstanding stock of mortgages rose slightly, to 3.88% from 3.87%¹.

Other household borrowing also rose. Net mortgage approvals for house purchases increased by 900 to 64,200 in June. Net consumer credit borrowing rose to £1.4 billion from £0.9 billion in May, with credit card borrowing up to £0.7 billion from £0.2 billion and other consumer credit broadly unchanged at £0.7 billion. The annual growth rate for all consumer credit rose to 6.7% from 6.5%¹.

Source: Bank of England¹. May remortgage and house purchase approval figures are derived from the reported monthly changes.

On the deposit side, households increased their holdings of money by £7.8 billion in June, mainly through an additional £3.6 billion paid into ISAs and £1.2 billion into interest bearing sight accounts. The effective interest rate on new time deposits rose by 10 basis points to 4.02%, while the rate on the outstanding stock of time deposits fell by 4 basis points to 3.57% and the rate on outstanding sight deposits fell to 1.91% from 1.96%¹.

Among businesses, the annual growth rate of borrowing by small and medium-sized enterprises increased from -0.2% to 0.3%, the first month of positive growth since August 2021, when it was 1.3%. The annual growth rate of borrowing by large businesses fell to 6.7% from 8.5%¹.

Why it matters for households

Remortgage approvals are a count of loans agreed, not completed, and the Bank describes them as an indicator of future borrowing¹. A rise means more households have agreed a new deal with a different lender, and those loans will typically complete in the following weeks or months. The rate those borrowers pay depends on deals available at the time: the effective rate on newly drawn mortgages was 4.34% in June, down from 4.47% in May and the fourth consecutive monthly fall¹. That is the average across new lending and does not set any individual household's rate.

For households with existing mortgages, the rate on the outstanding stock edged up to 3.88% in June from 3.87% in May, reflecting the gap between older fixed deals and rates on newer lending¹. Households holding cash saw the rate on new time deposits rise to 4.02%, while rates on existing time and sight deposits fell slightly¹. Higher consumer credit borrowing, including a rise in credit card borrowing to £0.7 billion in June, indicates more households adding to unsecured debt in the month¹.

What happens next

The Bank of England's next Money and Credit release is due on 1 September 2025¹. It will cover July 2025 and show whether the June rise in remortgage approvals continued. The Bank's next interest rate decision is not given in this release.