Mortgage borrowing and approvals fell in May 2026

Net mortgage borrowing by individuals fell to £2.9 billion in May 2026, down from £4.4 billion in April, according to the Bank of England's Money and Credit release published on 29 June 2026¹. That was below the previous six-month average of £5.1 billion and the lowest figure since May 2025, when it was £1.9 billion¹.

Net mortgage approvals for house purchases, described by the Bank as an indicator of future borrowing, decreased to 56,200 in May from 66,000 in April¹. That was below the average of 63,300 over the previous six months and the lowest since December 2023, when approvals were 52,600¹. Approvals for remortgaging, which capture only remortgaging with a different lender, also fell, to 33,300 in May from 51,200 in April¹.

The effective interest rate, the actual interest paid, on newly drawn mortgages increased to 4.22% in May from 4.08% in April¹. The rate on the outstanding stock of mortgages was unchanged at 3.92%¹. Secured gross lending decreased slightly to £27.1 billion in May from £27.4 billion in April, above the six-month average of £25.3 billion, while repayments rose slightly to £22.9 billion from £22.6 billion¹.

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

Consumer credit told a different story. Net borrowing of consumer credit was largely unchanged at £1.7 billion in May, slightly below the previous six-month average of £1.9 billion¹. Within that, credit card borrowing fell to £0.6 billion from £0.8 billion, while other forms of consumer credit, such as car dealership finance and personal loans, rose to £1.1 billion from £0.9 billion¹. The annual growth rate for all consumer credit was 8.9% in May, up from 8.7% in April¹. The effective rate on new personal loans rose to 9.66% from 9.53%, and on interest-charging credit cards to 21.45% from 21.20%¹.

Households' deposits with banks and building societies increased by £5.4 billion in May, following net deposits of £5.7 billion in April, driven by £3.1 billion paid into ISAs and £1.3 billion into interest-bearing time accounts¹. The effective interest rate on individuals' new time deposits rose to 4.26% from 4.07%, while the rate on the outstanding stock of sight deposits was unchanged at 1.65%¹.

Why it matters for households

Fewer approvals in May points to less mortgage lending completing in the months that follow, since approvals are counted before loans are drawn down¹. Households remortgaging with a different lender also face a smaller pool of activity: approvals on that measure fell by 17,900 between April and May¹. The rate paid on new mortgages rose to 4.22%, while the average rate across the existing stock of mortgages stayed at 3.92%, so borrowers moving onto new deals in May paid more than those remaining on their current rate¹. On the savings side, the rate paid on new time deposits rose to 4.26%, while the rate on sight deposits, where most instant-access money sits, was unchanged at 1.65%¹. Consumer credit growth accelerated to 8.9% a year, with credit card borrowing growing at 12.1%¹.

What happens next

The Bank of England's next Money and Credit release is due on 29 July 2026¹. No further detail on the May figures has been reported.