Net mortgage borrowing fell in April while approvals for house purchases rose

Net borrowing of mortgage debt by individuals fell to £4.4 billion in April, from £6.8 billion in March, the Bank of England said in its Money and Credit release published on 2 June 2026¹. The April figure was below the previous six-month average of £5.1 billion¹.

Net mortgage approvals for house purchases, which the Bank describes as an indicator of future borrowing, rose to 65,900 in April from 64,000 in March, above an average of around 63,100 over the previous six months¹. Approvals for remortgaging, which capture only remortgaging with a different lender, were broadly unchanged on March¹.

Secured gross lending decreased slightly to £27.5 billion in April, from £28.7 billion in March, and remained slightly above the six-month average of £24.8 billion¹. Repayments increased to £22.7 billion, from £19.8 billion in March, above the six-month average of £19.7 billion¹. The Bank notes that the difference between gross lending minus repayments and net lending figures is due to varying seasonal adjustment methods applied across these series¹.

The annual growth rate for net mortgage lending increased slightly to 3.3% in April, from 3.0% in March¹. The effective interest rate, described as the actual interest paid, on newly drawn mortgages rose to 4.08% in April, from 4.03% in March, while the rate on the outstanding stock of mortgages was 3.92%, down from 3.93%¹.

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

Consumer credit borrowing was largely unchanged at £1.9 billion in April, in line with the previous six-month average of £1.9 billion¹. Within that, net borrowing through credit cards was £0.8 billion, up from £0.7 billion in March, while net borrowing through other forms of consumer credit, such as car dealership finance and personal loans, fell to £1.0 billion from £1.2 billion¹. The annual growth rate for all consumer credit decreased to 8.8% in April; credit card borrowing growth fell to 11.8% from 12.3%, and growth in other consumer credit was unchanged at 7.4%¹.

The effective rate on new personal loans to individuals rose to 9.53% in April from 9.09% in March, and the rate on interest-charging credit cards fell to 21.20% from 21.63%¹. The rate on interest-charging overdrafts increased by 13 basis points to 21.79%¹.

Households' deposits with banks and building societies increased to £5.8 billion in April, following net deposits of £5.6 billion in March, driven by £12.0 billion deposited into ISAs and £1.3 billion into non-interest-bearing accounts, offset by withdrawals of £13.1 billion from interest-bearing sight deposit accounts and £0.3 billion from interest-bearing time accounts¹.

Why it matters for households

The figures cover April and were published on 2 June 2026¹. Lower net mortgage borrowing means households collectively added less new mortgage debt than in March, even as the number of approvals for house purchases rose, pointing to more borrowing agreed but not yet drawn down¹. Repayments of £22.7 billion in April exceeded the six-month average, which reduces the outstanding stock of mortgage debt¹.

For anyone with an existing mortgage, the rate on the outstanding stock edged down to 3.92%¹. For those taking out a new mortgage in April, the effective rate paid rose to 4.08%¹. The Bank's average mortgage interest figures track these rates over time, and its household borrowing page sets out how much UK households owe in mortgage and consumer credit. Borrowing more on an existing mortgage is covered in further advances, and extending a term in mortgage terms and extensions.

On consumer credit, credit card borrowing grew slightly month on month while other borrowing fell, and the annual growth rate for all consumer credit slowed to 8.8%¹. The effective rate on new personal loans rose to 9.53%¹.

What happens next

The Bank of England's next Money and Credit release is due on 29 June 2026¹.