Net mortgage borrowing rose to £7.7 billion in June 2026

Net borrowing of mortgage debt by individuals increased to £7.7 billion in June 2026, from £3.3 billion in May, the Bank of England said in its Money and Credit release published on 29 July 2026. The June figure was above the previous six-month average of £4.9 billion¹.

Net mortgage approvals for house purchases, which the Bank describes as an indicator of future borrowing, rose to 58,200 in June from 56,600 in May, but remained below an average of around 61,400 over the previous six months. Approvals for remortgaging with a different lender increased to 34,200 from 33,800¹.

Secured gross lending edged up to £27.4 billion in June from £27.2 billion in May, above the six-month average of £26.0 billion. Repayments fell to £21.3 billion from £22.7 billion, but stayed above the six-month average of £20.4 billion. The Bank notes that the gap between gross lending minus repayments and the net lending figures reflects different seasonal adjustment methods applied across those series¹.

The effective interest rate, meaning the actual interest paid, on newly drawn mortgages increased to 4.35% in June from 4.22% in May. The rate on the outstanding stock of mortgages was 3.96%, up from 3.92%¹.

"Net borrowing of mortgage debt by individuals increased to £7.7 billion in June, from £3.3 billion in May, above the previous 6-month average of £4.9 billion."

Consumer credit told a steadier story. Net borrowing of consumer credit by individuals rose slightly to £1.8 billion in June from £1.7 billion in May, in line with the previous six-month average of £1.8 billion. Within that, credit card borrowing was £0.9 billion, up from £0.6 billion, while other forms of consumer credit such as car dealership finance and personal loans fell to £0.9 billion from £1.1 billion¹.

Measure	May 2026	June 2026
Net mortgage borrowing	£3.3bn	£7.7bn
Mortgage approvals, house purchase	56,600	58,200
Remortgage approvals	33,800	34,200
Net consumer credit borrowing	£1.7bn	£1.8bn
Effective rate, newly drawn mortgages	4.22%	4.35%

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

Households' deposits with banks and building societies increased by £6.3 billion in June, following net deposits of £5.6 billion in May. That included £2.0 billion into ISAs, £1.6 billion into interest-bearing time accounts and £0.4 billion into non-interest bearing accounts, partly offset by withdrawals of £1.3 billion from interest-bearing sight deposit accounts. The effective interest rate on individuals' new time deposits rose to 4.30% from 4.26%¹.

On the business side, private non-financial corporations repaid, on net, £2.5 billion of finance in June, following net borrowing of £1.2 billion in May, driven by bond redemptions, equity buybacks and commercial paper redemptions, partly offset by £4.7 billion of net bank borrowing¹.

Why it matters for households

The June figures describe how much households collectively added to their mortgage debt, not what any individual pays. Net borrowing of £7.7 billion is the amount by which new mortgage lending exceeded repayments across the month, so a rise points to more money being drawn down against property than paid back¹.

The rate figures matter for anyone whose mortgage deal is due to end or who is taking out a new one. The effective rate on newly drawn mortgages, at 4.35% in June, is the average actually paid on new lending that month, and it rose from 4.22% in May. The rate on the existing stock of mortgages, at 3.96%, is lower, reflecting deals agreed earlier. That gap means borrowers moving from older deals onto new ones face a different rate from the one on their current loan¹.

Approvals, at 58,200 for house purchases, indicate how much borrowing is likely to complete in the coming months. The Bank's own comparison shows June below the recent six-month average, so the pipeline of new lending is running under its recent pace even as the value of borrowing rose¹.

For savers, the effective rate on new time deposits rose to 4.30%, while the rate on the outstanding stock of time deposits was 3.36% and on sight deposits 1.65%. Households added £6.3 billion to deposits in June, with ISA inflows of £2.0 billion¹.