Money and Credit – June 2026
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.
Nathan Emerson, CEO at Propertymark, comments:
“The increase in net mortgage approvals for house purchases increased June suggests that buyers responded positively to a period of relative economic stability. However, approvals remained below the average recorded over the previous six months, indicating that while confidence may be improving, activity has yet to fully recover.
“A consistent Bank of England base rate, competitive mortgage products, easing inflation and a temporary reduction in geopolitical tensions are all likely to have supported buyer confidence during the month.
“As inflation continues to ease, households should benefit from greater financial certainty, making it easier for many prospective buyers to plan ahead, build savings for a deposit and take advantage of more competitive borrowing costs.
“However, there remain headwinds. Inflation is still above the Bank of England’s 2 per cent target ahead of this Thursday’s interest rate decision, while higher household costs, including increased energy prices from 1 July, continue to place pressure on household finances.
“Ongoing uncertainty in the Middle East also has the potential to affect global energy markets and inflationary pressures, meaning affordability will remain a key challenge for many aspiring homeowners.”
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