Net mortgage borrowing by UK households jumped to £7.7 billion in June 2026, up from £3.3 billion in May. This was well above both market expectations of £3.95 billion and the previous six‑month average of £4.9 billion, and came despite rising borrowing costs. The annual growth rate of net mortgage lending inched up to 3.6%, from 3.5%.
Gross mortgage lending edged higher to £27.4 billion in June, from £27.2 billion in May, remaining above the six‑month average of £26.0 billion. At the same time, repayments declined to £21.3 billion from £22.7 billion, though they still exceeded the recent six‑month average of £20.4 billion.
The effective interest rate on newly drawn mortgages rose to 4.35% in June, up from 4.22% in May, marking its highest level in more than a year. The average interest rate on the outstanding stock of mortgages also increased, reaching a record high of 3.96%.
