UK Mortgage Lending Surges to £7.7 Billion in June

The Bank of England reported that net mortgage debt borrowing by individuals surged to £7.7 billion in June 2026, more than double the £3.3 billion recorded in May. Mortgage approvals for home purchases rose to 58,200 from 56,600, while remortgaging approvals increased to 34,200 from 33,800.

This growth occurred alongside rising costs. Average two-year and five-year fixed residential mortgages reached 5.62% and 5.66% respectively, and the effective interest rate for new mortgages climbed to 4.35% from 4.22%. Analysts suggest the trend was supported by a period of relative economic stability after the central bank held interest rates at 3.75%. The Bank of England is expected to maintain this rate during its monetary policy decision on July 30.

Consumer credit also rose to £1.8 billion, driven largely by credit card lending which reached £0.9 billion. The annual growth rate for credit card borrowing accelerated to 12.5%, leading some observers to suggest households are borrowing out of necessity to cover living costs. Business borrowing similarly increased to £1.5 billion in June.