Consumer credit borrowing decreases for second consecutive month

Net borrowing of consumer credit by individuals fell to £1.1 billion in October, down from £1.4 billion in September, according to the Bank of England's Money and Credit release published on 1 December 2025¹. It was the second consecutive monthly decrease¹.

Within the total, net borrowing through credit cards was £0.6 billion in October, slightly down from £0.7 billion in September. Net borrowing through other forms of consumer credit, such as car dealership finance and personal loans, was £0.5 billion, down from £0.7 billion the previous month¹.

The annual growth rate for all consumer credit was unchanged at 7.2% in October. The annual growth rate for credit card borrowing rose slightly to 10.9% from 10.8%, while the rate for other forms of consumer credit fell to 5.5% from 5.7%¹.

Rates on consumer credit moved in different directions. The effective interest rate on interest-charging overdrafts fell by 8 basis points to 21.78% in October. The rate on new personal loans rose for the third consecutive month, to 8.39% from 8.34%, and the rate on interest-charging credit cards increased to 21.54% from 21.44%¹.

The Bank also reported on mortgage lending. Net borrowing of mortgage debt by individuals fell back to £4.3 billion in October, after a rise to £5.2 billion in September. Gross lending was £24.5 billion, down slightly from £24.8 billion, while gross repayments rose by £1.5 billion to £22.1 billion. The annual growth rate for net mortgage lending was unchanged at 3.2%, the highest since January 2023¹.

Approvals for remortgaging with a different lender fell by 3,600 to 33,100, the lowest since February 2025¹.

The effective interest rate on newly drawn mortgages was 4.17% in October, down from 4.19% in September and the lowest since January 2023. The rate on the outstanding stock of mortgages was unchanged for a third month at 3.89%¹.

Households deposited an additional £6.8 billion with banks and building societies in October, after net deposits of £8.2 billion in September. This included £5.5 billion into interest-bearing sight deposit accounts, £4.2 billion into ISAs and £0.3 billion into interest-bearing time deposit accounts, partly offset by withdrawals of £1.8 billion from non-interest-bearing accounts¹.

On the business side, private non-financial corporations repaid, on net, £4.8 billion of finance in October, the highest level of net repayments since October 2023¹.

Source: Bank of England, Money and Credit, October 2025¹. The September approvals figure is derived from the reported decrease of 600 to 65,000 in October¹.

Why it matters for households

The figures describe how much households collectively borrowed and saved in October, not what any individual owes. A fall in net consumer credit borrowing means the gap between new borrowing and repayments narrowed, which can reflect either less new borrowing or faster repayment; the release does not separate the two¹.

The annual growth rate for all consumer credit was unchanged at 7.2%, so the stock of consumer credit is still growing, even as the monthly net flow fell¹. Credit card borrowing is growing faster than other consumer credit, at 10.9% a year against 5.5%¹.

For mortgage holders and buyers, the effective rate on new mortgages was 4.17% in October, the lowest since January 2023, while the rate on the existing stock of mortgages stayed at 3.89%¹. That gap means borrowers moving onto new deals may face a different rate from those on existing ones. Mortgage approvals, which the Bank treats as an indicator of future borrowing, fell to 65,000¹.

Households added £6.8 billion to deposits in October, with £4.2 billion going into ISAs¹. The effective rate on new time deposits was 3.84%, up from 3.82%, while the rate on the outstanding stock of time deposits fell to 3.37% and the rate on outstanding sight deposits fell to 1.77%¹.

What happens next

The Bank of England's next Money and Credit release is due on 5 January 2026¹. The October release does not report any policy decisions or changes to rules affecting consumer credit or mortgages.

Broader rates and economy coverage is also published.