Net mortgage approvals for house purchases fell to 60,000 in January 2026

Net mortgage approvals for house purchases fell to 60,000 in January 2026, down from 61,000 in December and below an average of around 64,100 over the previous six months, according to the Bank of England's Money and Credit release published on 2 March 2026¹. Approvals for remortgaging, which capture only remortgaging with a different lender, decreased slightly to 38,100 from 38,400¹.

Net borrowing of mortgage debt by individuals decreased to £4.1 billion in January, from £4.5 billion in December, below the previous six-month average of £4.5 billion¹. The annual growth rate for net mortgage lending decreased slightly to 3.3% in January from 3.4% in December¹. Secured gross lending increased slightly to £23.4 billion, up from £23.0 billion in December and still slightly below the six-month average of £23.8 billion, while repayments rose to £19.1 billion from £18.8 billion¹.

The effective interest rate, the actual interest paid, on newly drawn mortgages decreased to 4.09% in January from 4.15% in December. The rate on the outstanding stock of mortgages was 3.90%, down from 3.92%¹.

Consumer credit moved in the other direction. Net borrowing of consumer credit by individuals increased to £1.8 billion in January, from £1.7 billion in December, in line with the previous six-month average of £1.8 billion¹. Within this, net borrowing through credit cards was £0.9 billion, up from £0.8 billion, while net borrowing through other forms of consumer credit, such as car dealership finance and personal loans, remained unchanged at £0.9 billion¹. The effective rate on interest-charging credit cards increased to 21.75% from 21.56%, and the rate on new personal loans rose to 9.03% from 8.78%¹.

Households' deposits with banks and building societies increased by £4.2 billion in January, following net deposits of £4.5 billion in December, driven by £5.2 billion deposited into ISAs, £3.1 billion into non-interest-bearing accounts and £2.5 billion into interest-bearing sight deposit accounts, partly offset by £0.8 billion of withdrawals from interest-bearing time accounts¹.

Source: Bank of England, Money and Credit, January 2026¹

Why it matters for households

Mortgage approvals are an indicator of future borrowing, so the January figure points to fewer house purchases completing in the months ahead than the recent average would suggest¹. For anyone with a mortgage already, the effective rate on the outstanding stock edged down to 3.90% in January from 3.92% in December, while the rate paid on newly drawn mortgages fell to 4.09% from 4.15%¹. Those figures describe average rates paid in the month and do not set what any individual pays.

On the savings side, the effective interest rate paid on individuals' new time deposits with banks and building societies increased to 3.77% in January from 3.76% in December, while the rates on the outstanding stock of time and sight deposits were 3.34% and 1.73% respectively, compared with 3.35% and 1.75%¹. Households put £5.2 billion into ISAs during the month¹.

For borrowers using consumer credit, the effective rate on interest-charging overdrafts increased by 71 basis points to 22.03% in January, and the rate on interest-charging credit cards rose to 21.75%¹. The annual growth rate for all consumer credit was unchanged at 8.3%¹.

What happens next

The Bank of England's next Money and Credit release is due on 30 March 2026¹. The release does not set out any policy decisions or changes to mortgage or savings terms.