Government · UK · Bank of England
UK Credit Card Borrowing Grows 11.8% in April 2026
UK consumers kept borrowing on credit cards in April 2026, with annual card-borrowing growth at 11.8%, even as mortgage lending softened and households moved a record amount into ISAs. The pattern points to careful but credit-supported spending.
Source published Summarised
Key findings at a glance
- 11.8% annual growth rate of UK credit card borrowing in April 2026
- 8.8% annual growth rate of all UK consumer credit in the year to April 2026
- £1.9bn net consumer credit borrowed by individuals in April, level with the six-month average
- £0.8bn net consumer borrowing on credit cards in April
- 21.20% average effective interest rate on interest-charging credit cards in April
- 65,900 net mortgage approvals for house purchase in April, an indicator of future borrowing
- £4.4bn net mortgage debt taken on by individuals in April
- 4.08% effective interest rate on newly drawn mortgages in April
- £12.0bn net household flows into ISAs in April
- £5.8bn net rise in household deposits with banks and building societies in April
- £1bn net bank borrowing by UK small and medium-sized businesses in April
- 9.53% effective interest rate on new personal loans in April
What the report covers
The Bank of England published its Money and Credit statistical release for April 2026 on 2 June 2026. The release is one of the most-watched monthly reads on the financial health of UK households and businesses, covering how much people borrowed on mortgages and consumer credit, how much they saved, and what they paid to borrow.
Two numbers stand out for anyone selling to UK consumers. Credit card borrowing was still growing at 11.8% a year, and households added a net £5.8 billion to deposits, driven by £12.0 billion of inflows into ISAs. At the same time, net mortgage borrowing fell to £4.4 billion, its softest reading in months. The combination suggests households that are protective of savings but willing to use cards to fund day-to-day and discretionary spending, a backdrop that mirrors our recent look at UK card spending and the stalling online share.
The business side is steadier. UK non-financial firms borrowed a net £5.2 billion from banks, with small and medium-sized businesses taking on £1 billion and large firms £4.2 billion. SME borrowing growth ticked up to 4.2% on the year, a modest but positive signal for B2B demand.
What this means for UK marketers
The headline for marketers is not the mortgage slowdown, it is the split between how people save and how they spend. Households are protecting cash, evidenced by the £12.0 billion ISA inflow, while still running up card balances. That tension shapes how purchase decisions get made.
For retail and ecommerce brands, the practical reads are clear. With credit card borrowing growing at 11.8% and card APRs sitting above 21%, the cost of carrying a balance is high, so financing and affordability messaging matters. Flexible payment options, transparent pricing, and value framing tend to convert better when consumers are credit-aware. If you offer buy-now-pay-later or instalments, make the terms visible early, not buried at checkout. This is the kind of demand-led positioning we build into client campaigns through our digital marketing services.
Big-ticket and home-related categories should watch the mortgage data as a leading indicator. Net approvals of 65,900 for house purchase point to a reasonable pipeline of future home moves, which feeds demand for furniture, renovation, appliances, and home services in the months ahead. Plan paid budgets to follow that lag rather than the current month's transactions.
For B2B and finance brands, the steadier SME borrowing growth of 4.2% suggests small firms are still investing, just carefully. Lead generation that leans on certainty, return on investment, and risk reduction will land better than growth-at-all-costs messaging. Set this against the wider spending picture in the latest ONS retail sales figures before committing budget, since lending conditions and till receipts do not always move together.
How they got the data
The figures come from the Bank of England's Money and Credit release, compiled from data reported by UK monetary financial institutions (banks and building societies). The series cover net lending, gross lending and repayments, mortgage approvals, consumer credit, deposits, and effective interest rates, and are seasonally adjusted. The Bank reports both monthly flows and annual growth rates, and references six-month averages to put each month in context.
Mortgage approval figures are net of cancellations and are treated as an indicator of future borrowing rather than completed lending. Effective interest rates reflect the actual rates paid on newly drawn and outstanding balances. The April 2026 data was published on 2 June 2026, with the next release scheduled for 29 June 2026. Companion detail on borrowing and savings rates sits in the Bank's Effective interest rates release.
Government · UK
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From Bank of England · published 02/06/2026