UK Mortgage Borrowing Jumps Well Above Expectations in June

Net mortgage borrowing by UK households surged to £7.7 billion in June 2026 from £3.3 billion in May, far exceeding market expectations of £3.95 billion and the previous six-month average of £4.9 billion, despite rising borrowing costs. The annual growth rate of net mortgage lending also edged up to 3.6% from 3.5%. Gross mortgage lending rose slightly to £27.4 billion from £27.2 billion, remaining above the six-month average of £26.0 billion. Meanwhile, repayments fell to £21.3 billion from £22.7 billion, although they continued to exceed the recent six-month average of £20.4 billion. Meanwhile, the effective interest rate on newly drawn mortgages climbed to 4.35% in June from 4.22% in May, its highest level in more than a year. The average rate on the outstanding stock of mortgages also increased, reaching a record high of 3.96%.





