Overview
These monthly statistics on the amount of, and interest rates on, borrowing and deposits by households and businesses are used by the Bank’s policy committees to understand economic trends and developments in the UK banking system.
Key points:
- Net borrowing of mortgage debt by individuals increased to £7.7 billion in June, from £3.3 billion in May, above the previous 6-month average of £4.9 billion.
- Net mortgage approvals for house purchases increased to 58,200 in June, but was below an average of around 61,400 over the previous 6-months. Approvals for remortgaging increased to 34,200 in June, from 33,800 in May.
- Net borrowing of consumer credit by individuals slightly increased to £1.8 billion in June, from £1.7 billion in May, and was in line with the previous 6-month average of £1.8 billion. Within this, net borrowing through credit cards was £0.9 billion in June, up from £0.6 billion in May. Net borrowing through other forms of consumer credit (such as car dealership finance and personal loans) decreased to £0.9 billion in June, from £1.1 billion in May.
- Private non-financial corporations (PNFCs) repaid, on net, £2.5 billion of finance in June, following net borrowing of £1.2 billion in May. Within total net finance raised, bank loans amounted to £4.7 billion of borrowing in June, following £1.9 billion net borrowing in May.
- The net flow of sterling money (known as M4ex) increased to £14.6 billion in June, from £11.9 billion in May. This was driven by Households, NIOFCs and PNFCs increasing their holdings of money by £6.3 billion, £4.8 billion and £3.4 respectively. Households deposited £2.0 billion into ISAs, £1.6 billion into interest-bearing time deposits and £0.4 billion into non-interest bearing deposit accounts. These increases were partially offset by withdrawals of £1.3 billion from interest-bearing sight deposit accounts.
- The flow of sterling net lending to private sector companies and households (M4Lex) increased to £39.1 billion in June, following a decrease to -£0.1 billion in May. June’s lending was mainly driven by NIOFCs borrowing £28.5 billion, compared with £6.9 billion of repayments in May. Households and PNFCs also borrowed £7.9 billion and £2.7 billion, compared with £4.5 billion and £2.3 billion in May, respectively.
References in the text point to the summary tables below.
For further statistics, please see our visual summaries, Effective Rates (ER) statistical release, Capital Issuance statistical release, and Bankstats tables.
Lending to and deposits from individuals
Mortgage lending (M&C Tables D and E):
Net borrowing of mortgage debt by individuals increased to £7.7 billion in June, from £3.3 billion in May, above the previous 6-month average of £4.9 billion. The annual growth rate for net mortgage lending increased slightly to 3.6% in June from 3.5% in May.
Secured gross lending increased slightly to £27.4 billion in June, up from £27.2 billion in May, above the 6-month average of £26.0 billion. Repayments decreased in June to £21.3 billion, from £22.7 billion, but remained above the 6-month average of £20.4 billion.
Note: The difference between gross lending minus repayments and net lending figures is due to varying seasonal adjustment methods applied across these series (see Chart 1).
Chart 1: Secured lending inc. house purchase, remortgaging and other advances
Seasonally adjusted
Net mortgage approvals (that is, approvals net of cancellations) for house purchases, which is an indicator of future borrowing, increased to 58,200 in June, from 56,600 in May. Approvals for remortgaging (which only capture remortgaging with a different lender) also increased to 34,200 in June, from 33,800 in May.
Chart 2: Mortgage approvals
Seasonally adjusted
The ‘effective’ interest rate – the actual interest paid – on newly drawn mortgages increased to 4.35% in June, from 4.22 in May. The rate on the outstanding stock of mortgages was 3.96% in June, up from 3.92% in May.
Consumer credit (M&C Tables B and C):
In June, net borrowing of consumer credit by individuals slightly increased to £1.8 billion from £1.7 billion in May (Chart 3), and was in line with the previous 6-month average of £1.8 billion. Within this, net borrowing through credit cards was £0.9 billion in June, up from £0.6 billion in May. Net borrowing through other forms of consumer credit (such as car dealership finance and personal loans) decreased to £0.9 billion in June, from £1.1 billion in May.
Chart 3: Consumer credit
Seasonally adjusted
The annual growth rate for all consumer credit increased slightly to 9.1% in June, from 9.0% in May. Over the same period, the annual growth rate for credit card borrowing increased to 12.5% from 12.2%, while for other forms of consumer credit it remained unchanged at 7.6% (Chart 4).
Chart 4: Consumer credit growth
Seasonally adjusted
The effective interest rate on interest-charging overdrafts decreased by 40 basis points, to 21.17% in June. The effective rate on new personal loans to individuals increased slightly to 9.67% in June from 9.66% in May. The effective rate on interest-charging credit cards increased in June, to 21.49% from 21.45%.
Households’ deposits (M&C Table J):
Households’ deposits with banks and building societies increased by £6.3 billion in June, following net deposits of £5.6 billion in May. This was driven by households depositing an additional £2.0 billion into ISAs, £1.6 billion into interest-bearing time accounts and £0.4 billion into non-interest bearing accounts. These inflows were partially offset by withdrawals of £1.3 billion from interest-bearing sight deposit accounts (Chart 5).
Chart 5: Breakdown of households’ deposits (Household M4)
Seasonally adjusted net flow
The effective interest rate paid on individuals’ new time deposits with banks and building societies increased to 4.30% in June from 4.26% in May. The effective rates on the outstanding stock of time and sight deposits were 3.36% and 1.65% respectively, compared to 3.31% and 1.65% in May.
Lending to and deposits from businesses
Businesses’ borrowing from banks (M&C Tables G-I):
In June, UK non-financial businesses (PNFCs and public corporations) borrowed, on net, £1.5 billion of loans from banks and building societies (including overdrafts), following £1.1 billion of net borrowing in May. Within this measure, large non-financial businesses borrowed £0.9 billion, following net borrowing of £1.0 billion in May. Small and medium-sized non-financial businesses (SMEs) borrowed, on net, £0.6 billion in June, following net borrowing of £0.1 billion in May.
The annual growth rate of borrowing by large businesses increased to 10.5% in June, from 9.9% in May. The annual growth rate of borrowing by SMEs increased slightly to 4.1% from 4.0% over the same period (Chart 6).
Chart 6: Annual growth of lending to SMEs and large businesses
Seasonally adjusted
The effective interest rate on new loans from banks to UK PNFCs increased by 7 basis points to 5.42% in June. The effective interest rate on new loans to SMEs increased to 6.36% from 6.18% over the same period.
Net Finance Raised (M&C Table F):
PNFCs repaid, on net, £2.5 billion of finance in June, following net borrowing of £1.2 billion in May. This was driven by £1.9 billion of net bond redemptions, £1.4 billion of net equity buybacks and £0.5 billion of net commercial paper redemptions. These repayments were partially offset by £4.7 billion of net borrowing through loans from banks and building societies (Chart 7).
Chart 7: Net finance raised by PNFCs
Seasonally adjusted net flow
Businesses’ deposits:
In June, UK non-financial businesses deposited, on net, £24.4 billion with banks and building societies in all currencies, following net deposits of £3.4 billion in May. The effective rate on new time deposits from PNFCs increased by 4 basis point to 3.47% in June, while the effective rate on stock sight deposits increased to 1.95%, from 1.92% in the previous month.
Aggregate money (M4ex) and lending (M4Lex) (M&C Tables J and K)
The net flow of sterling money (known as M4ex) increased to £14.6 billion in June, from £11.9 billion in May (Chart 8). Within this, households increased their holdings of money by £6.3 billion, non-intermediate other financial corporations (NIOFCs) increased holdings by £4.8 billion and PNFCs increased money holdings by £3.4 billion.
The annual growth rate of M4ex increased to 5.0% in June, from 4.8% in May.
The flow of sterling net lending to private sector companies and households (M4Lex) increased to £39.1 billion in June, following a decrease to -£0.1 billion in May (Chart 9). June’s lending was mainly driven by NIOFCs borrowing £28.5 billion, compared with £6.9 billion of repayments in May. Households and PNFCs also borrowed £7.9 billion and £2.7 billion, compared with £4.5 billion and £2.3 billion in May, respectively.
The annual growth rate of M4Lex increased to 6.7% in June, from 6.0% in May.
Chart 8: M4ex sectoral components flows
Seasonally adjusted
Chart 9: M4Lex sectoral components flows
Seasonally adjusted
Chart 10: Annual growth of M4ex and M4Lex
Queries
If you have any comments or queries about this release, please email DSD_MS@bankofengland.co.uk.
Next release date: 1 September 2026
