Mortgage lending in the United Kingdom declined at the start of 2026, underscoring signs of softening demand in the housing market. In January 2026, new mortgage lending fell to £4.08 billion, down from £4.60 billion in December 2025.
The month‑on‑month drop suggests potential borrowers may be adopting a more cautious stance at the turn of the year, following a stronger lending figure in December. While seasonal effects often play a role in housing market dynamics, the latest data will be closely watched by lenders and policymakers for indications of broader shifts in credit appetite and housing activity.
The figures, updated on 2 March 2026, point to a cooler tone in the UK mortgage market as the year begins, with market participants likely to monitor upcoming months for confirmation of whether this represents a temporary pause or the start of a more sustained moderation in lending volumes.
