Net borrowing of mortgage debt by UK individuals fell to £3.9 billion in September, down from £4.2 billion in August, coming in below both the previous six-month average of £4.9 billion and market expectations of £4.2 billion. The annual growth rate of net mortgage lending eased to 3.4% in September, from 3.6% in August.
Secured gross lending edged up to £24.2 billion in September, compared with £23.7 billion in August, though it remained below the six-month average of £26.3 billion. Mortgage repayments also rose modestly, reaching £21.4 billion in September from £20.2 billion in August, slightly above the six-month average of £21.3 billion.
The ‘effective’ interest rate on newly drawn mortgages increased to 4.63% in September, from 4.60% in August. The effective rate on the outstanding stock of mortgages also moved higher, to 4.03% in September from 4.00% in August.
