UK Net Mortgage Borrowing Slows
2025-12-01 10:26
By
Joana Ferreira
1 min. read
Net borrowing of mortgage debt by UK individuals fell to £4.3 billion in October 2025, down from £5.2 billion in September and below market expectations of £4.5 billion.
Gross lending edged slightly lower to £24.5 billion from £24.8 billion, while gross repayments rose by £1.5 billion to £22.1 billion.
The annual growth rate for net mortgage lending held steady at 3.2% in October, the highest since January 2023.
The ‘effective’ interest rate on newly drawn mortgages fell to 4.17% from 4.19% in September, marking its lowest level since January 2023 (3.88%) and continuing the downward trend observed since March 2025.
The rate on the outstanding stock of mortgages remained unchanged for a third consecutive month at 3.89%.