UK Mortgage Lending Below Expectations

Net borrowing of mortgage debt by UK individuals decreased to £3.9 billion in September, from £4.2 billion in August, below the previous 6-month average of £4.9 billion and market expectations of £4.2 billion. The annual growth rate for net mortgage lending decreased to 3.4% in September, from 3.6% in August. Secured gross lending increased slightly to £24.2 billion in September, up from £23.7 billion in August, still below the 6-month average of £26.3 billion. Repayments increased slightly in September to £21.4 billion, from £20.2 billion, slightly above the 6-month average of £21.3 billion. Meanwhile, the ‘effective’ interest rate on newly drawn mortgages increased to 4.63% in September, from 4.60% in August, while the rate on the outstanding stock of mortgages was 4.03% in September, up from 4.00% in August.

Net mortgage borrowing by UK individuals increased to £4.4 billion in August 2026, up from a revised £4.1 billion in July but below the six-month average of £5.2 billion. The annual growth rate of net mortgage lending was unchanged at 3.6%. Gross secured lending fell to £23.6 billion, from £25.3 billion in July and below the six-month average of £26.5 billion, while repayments eased to £20.4 billion from £21.1 billion. Meanwhile, the effective interest rate on newly drawn mortgages rose to 4.60%, from 4.45%, while the rate on the outstanding mortgage stock edged up to 4.00% from 3.97%.

Net mortgage borrowing by UK individuals fell to £4.3 billion in July, down from £7.7 billion in June and below the previous six-month average of £5.3 billion. The annual growth rate of net mortgage lending was unchanged at 3.6%. Gross secured lending also eased to £25.9 billion from £26.9 billion, slightly below its six-month average of £26.4 billion. Repayments edged up to £21.3 billion from £21.2 billion, remaining above the six-month average of £20.8 billion. The effective interest rate on newly drawn mortgages rose to 4.45% in July from 4.35% in June, while the rate on the outstanding mortgage stock increased slightly to 3.97% from 3.96%.