UK Mortgage Approvals Lowest Since 2024

(RTTNews) - UK mortgage approvals declined to the lowest since early 2024, while consumer credit reached its highest level since late 2025, the Bank of England said Tuesday.

The number of mortgages approved in July declined unexpectedly to 56,053 from 58,215 in June. This was the lowest since January 2024. Approvals were forecast to increase to 59,000.

The 'effective' interest rate, which is the actual interest paid on newly drawn mortgages increased to 4.45 percent from 4.35 percent in June.

Mortgage lending decreased to GBP 4.3 billion from GBP 7.7 billion. Nonetheless, the mortgage lending growth remained unchanged at 3.6 percent.

Similarly, secured gross lending decreased to GBP 25.9 billion in July from GBP 26.9 billion in June.

Data showed that consumer credit increased to GBP 2.0 billion, the highest since November 2025, from GBP 1.9 billion in June.

Within total consumer credit, net borrowing through credit cards decreased to GBP 0.9 billion from GBP 1.0 billion, while net borrowing through other forms of consumer rose to GBP 1.1 billion from GBP 0.9 billion.

Further, data showed businesses borrowed GBP 1.8 billion in July compared to GBP 1.6 billion net borrowing in June. Large businesses borrowed GBP 1.0 billion and small and medium-sized businesses borrowed GBP 0.8 billion in July.