FX.co ★ UK Mortgage Borrowing Steady in December

In December 2025, net mortgage borrowing by UK individuals remained steady at £4.6 billion, slightly surpassing market expectations of £4.5 billion. During this period, gross lending decreased by £0.5 billion, reaching £23.0 billion, while gross repayments dropped by £0.6 billion to £18.8 billion. The annual growth rate for net mortgage lending remained consistent at 3.4%. The effective interest rate on newly issued mortgages slightly decreased to 4.15% from 4.20% in November. In contrast, the interest rate for the existing stock of mortgages saw a marginal increase to 3.92% from 3.90% in the previous month.