UK Mortgage Lending Rises to 6-Month High

Net borrowing of mortgage debt by UK individuals increased to a five-month high of £4.84 billion in February 2026 from £4.2 billion in January, above the previous 6-month average of £4.5 billion and higher than market expectations of £4.1 billion. The annual growth rate for net mortgage lending increased slightly to 3.4% in February, from 3.3% in January. Secured gross lending increased slightly to £23.9 billion in February, up from £23.6 billion in January, slightly above the 6-month average of £23.7 billion. Repayments decreased in February, to £18.4 billion from £18.8 billion, below the 6-month average of £19.9 billion. The ‘effective’ interest rate on newly drawn mortgages slightly increased, to 4.10% in February, from 4.09% in January. The rate on the outstanding stock of mortgages was 3.95% in February, up from 3.90% in January.

Net mortgage borrowing by UK individuals eased to £4.08 billion in January 2026, down from a revised £4.49 billion and below the previous six-month average of £4.5 billion. The annual growth rate for net mortgage lending eased to 3.3% in January from 3.4% in December. Secured gross lending increased slightly to £23.4 billion in January, up from £23.0 billion in December, still slightly below the six-month average of £23.8 billion. Repayments increased in January to £19.1 billion, from £18.8 billion, below the six-month average of £20.0 billion. The effective interest rate on newly drawn mortgages edged down to 4.09% from 4.15%, while the rate on the outstanding stock of mortgages slipped slightly to 3.90% from 3.92%.

Net mortgage borrowing by UK individuals remained unchanged at £4.6 billion in December 2025, slightly above market expectations of £4.5 billion. Gross lending fell by £0.5 billion to £23.0 billion, while gross repayments also declined by £0.6 billion to £18.8 billion. The annual growth rate for net mortgage lending held steady at 3.4%. The effective interest rate on newly drawn mortgages edged down to 4.15% in December, from 4.20% in November. Meanwhile, the rate on the outstanding stock of mortgages rose slightly to 3.92%, up from 3.90% the previous month.