Government · UK · Bank of England
UK mortgage borrowing more than doubles to £7.7bn
UK net mortgage borrowing more than doubled to £7.7 billion in June 2026, well clear of the £4.9 billion six-month average, while annual credit card growth accelerated to 12.5%. Households are committing to house moves again and financing more of their everyday spending on cards.
Source published Summarised
Key findings at a glance
- £7.7bn net mortgage debt borrowed by UK individuals in June, up from £3.3bn in May
- £4.9bn previous six-month average for net mortgage borrowing, well below June's reading
- 58,200 net mortgage approvals for house purchase in June, up from 56,600 in May
- 34,200 remortgaging approvals in June, up from 33,800 in May
- 4.35% effective interest rate on newly drawn mortgages in June, up from 4.22% in May
- £1.8bn net consumer credit borrowed by individuals in June, in line with the six-month average
- £0.9bn net borrowing on credit cards in June, up from £0.6bn in May
- 12.5% annual growth rate for credit card borrowing in June, up from 12.2% in May
- 9.1% annual growth rate for all consumer credit in June, up from 9.0% in May
- 21.49% effective interest rate on interest-charging credit cards in June
- £6.3bn net amount UK households added to their deposits in June
- £0.6bn net bank borrowing by UK SMEs in June, up from £0.1bn in May
What the report covers
The Bank of England published its Money and Credit statistical release for June 2026 on 29 July 2026. It is the monthly benchmark for how much UK households and businesses borrowed, how much they saved, and what they actually paid to borrow, compiled from returns filed by banks and building societies.
The June read reverses the picture from a month earlier. Net mortgage borrowing more than doubled to £7.7 billion, comfortably above the £4.9 billion six-month average, and both house-purchase and remortgaging approvals edged up. The Bank also revised May upwards to £3.3 billion, above the £2.9 billion first reported in our note on UK mortgage borrowing in May 2026, so the rebound starts from a slightly firmer base than it first appeared.
Consumer credit tells a quieter but more interesting story. Total net borrowing held at £1.8 billion, yet the mix shifted towards cards: card borrowing rose to £0.9 billion and its annual growth rate reached 12.5%, against 7.6% for car finance and personal loans. Households still added £6.3 billion to deposits over the month, and SMEs borrowed a net £0.6 billion from banks after barely borrowing at all in May.
What this means for UK marketers
Mortgage approvals are the number to plan against. At 58,200 for house purchase and 34,200 for remortgaging, June's approvals feed completions roughly two to three months out, which puts a firmer autumn pipeline in front of anyone selling into a house move: furniture, flooring, appliances, storage, removals, and home services. Last month's data argued for trimming those budgets. This month's argues for restoring them, and for pulling the September planning cycle forward rather than waiting for sales to confirm the turn.
The credit card figures matter more than their size suggests. Annual card growth of 12.5% alongside an effective card rate of 21.49% means a growing share of discretionary UK spending is being financed at expensive rates. For ecommerce, that raises the value of anything reducing payment friction at checkout: instalment options, clear total-cost messaging, and honest delivery and returns terms. It also raises the risk in urgency-led discounting, because shoppers borrowing at 21% are more price-attentive, not less. Read it alongside the record online share in the June 2026 retail sales report and the case for testing checkout before adding spend gets stronger, which is the work we scope under conversion rate optimisation.
Two further points. Finance and mortgage-broker clients now have demand moving rather than waiting, so lower-funnel campaigns on remortgage timing and affordability should be funded ahead of the next Bank Rate decision. And UK SMEs borrowing £0.6 billion on net, with annual growth of just 4.1% against 10.5% for large businesses, confirms smaller advertisers are still working from tight budgets. If you sell to SMEs, price and package for that: shorter commitments, clearer payback, proof before scale. The wider household backdrop sits in the ONS retail sales bulletin for June 2026.
How they got the data
The figures come from the Bank of England's Money and Credit release, compiled from statistical returns filed by UK monetary financial institutions (banks and building societies). The series cover net and gross lending, repayments, mortgage approvals, consumer credit, household and business deposits, and effective interest rates. Headline series are seasonally adjusted, and the Bank publishes monthly flows alongside annual growth rates and six-month averages so a single month can be read in context.
Mortgage approvals are reported net of cancellations and treated as an indicator of future borrowing rather than completed lending, which is why they lead the housing-related categories by roughly a quarter. Effective interest rates are the rates actually paid, on newly drawn balances and on the outstanding stock, not advertised rates. Earlier months are revised as fuller returns arrive, which is how May's net mortgage borrowing moved from £2.9 billion to £3.3 billion. The June 2026 data was published on 29 July 2026, with companion rate detail in the Bank's Effective interest rates release.
Government · UK
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From Bank of England · published 29/07/2026