UK Mortgage Lending Rises to 5-Month High

Net mortgage borrowing by UK individuals rose to £6.15 billion in March 2026, up from a revised £5.22 billion in February and exceeding market expectations of £4.2 billion. This marked the highest level in a year, surpassing the six-month average of £4.9 billion, as borrowing costs continued to decline. The annual growth rate for net mortgage lending eased to 3.0% in March from 3.4% in February. Secured gross lending increased to £28.7 billion, up from £24.0 billion in February and above the six-month average of £23.9 billion. Repayments also rose to £19.7 billion in March from £18.6 billion in February, slightly below the six-month average of £19.8 billion. The effective interest rate on newly drawn mortgages fell to 4.03% in March from 4.10% in February, while the rate on the outstanding stock of mortgages edged down to 3.93% from 3.95%.

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%.