FX.co ★ UK Net Mortgage Borrowing Rebounds in May

Net mortgage borrowing by UK individuals climbed to £2.1 billion in May 2025, marking a £2.8 billion increase compared to a substantial decline of £13.8 billion experienced in April, which saw net borrowing dive to -£0.8 billion. Though the May figure slightly missed market forecasts of £2.5 billion, it indicates a prompt recovery in the housing market following the cessation of a homebuyer tax incentive in April. The annual growth rate of net mortgage lending inched up to 2.6% in May, from 2.5% in April. Gross mortgage lending rose to £20.4 billion, improving from £16.9 billion the previous month, while gross repayments decreased to £17.6 billion, down from £18.2 billion. Meanwhile, the 'effective' interest rate—that is, the actual interest paid—on new mortgages slightly decreased to 4.47% in May from 4.49% in April. Conversely, the interest rate on existing mortgage balances saw a minor increase to 3.87% from 3.86%.