UK Mortgage Borrowing At Record High

JUN MORTGAGE APPROVALS 81,338 VS MAY 86,949

JUN NET CONSUMER CREDIT GBP0.308BN VS MAY GBP0.430BN

JUN NET CHANGE SECURED LENDING GBP17.868BN VS MAY GBP6.785BN

• The UK mortgage market remained strong in Jun with mortgage borrowing surging to a record high of GBP 17.9bn ahead of the end of the stamp duty holiday. The BOE noted that there has been a shortening of time between mortgage being approved and the lending itself. Mortgage approvals eased slightly in Jun to 81,338, down from 86,949 seen in May and showing the lowest reading since Jul 2020. The effective rate on new mortgages rose by 5bp to 1.95%.
• Households borrowed GBP0.3bn as consumer credit, slightly less than in the previous month. The annual growth rate remained weak in Jun, although it ticked up slightly to -2.2%. The effective interest rate on new consumer credit edged marginally higher to 5.67% in Jun.