FX.co ★ UK Net Mortgage Borrowing Slows

In October 2025, net borrowing of mortgage debt by individuals in the UK decreased to £4.3 billion from £5.2 billion in September, contrary to market expectations of £4.5 billion. Gross lending saw a slight decline, reaching £24.5 billion compared to £24.8 billion, while gross repayments increased by £1.5 billion, totaling £22.1 billion. The year-over-year growth rate for net mortgage lending remained consistent at 3.2% in October, the highest rate observed since January 2023. The 'effective' interest rate for newly issued mortgages reduced slightly to 4.17% from 4.19% in September, its lowest since January 2023 when it was 3.88%, continuing the decreasing trend seen since March 2025. Meanwhile, the interest rate on the existing mortgage stock stayed steady for the third month in a row at 3.89%.