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%.



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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%.
2025-12-01