Bank of England Money and Credit Report July 2026
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 decreased to £4.3 billion in July, from £7.7 billion in June, below the previous 6-month average of £5.3 billion.
- Net mortgage approvals for house purchases decreased to 56,100 in July, below an average of around 60,800 over the previous 6-months. Approvals for remortgaging increased to 34,500 in July, from 34,100 in June.
- Net borrowing of consumer credit by individuals increased to £2.0 billion in July, from £1.9 billion in June, slightly above the previous 6-month average of £1.9 billion. Within this, net borrowing through credit cards was £0.9 billion in July, down from £1.0 billion in June. Net borrowing through other forms of consumer credit (such as car dealership finance and personal loans) increased to £1.1 billion in July, from £0.9 billion in June.
- Private non-financial corporations (PNFCs) raised close to no net finance in July, following net repayments of £2.4 billion in June. Within total net finance raised, bank loans amounted to £0.9 billion of repayments in July, following £4.7 billion net borrowing in June.
- The net flow of sterling money (known as M4ex) decreased to -£10.1 billion in July, from £15.5 billion in June. NIOFCs decreased their holdings of money by £14.0 billion. This was partially offset by Households and PNFCs increasing their holdings of money by £3.8 billion and £0.1 respectively. Households deposited £2.2 billion into ISAs, £1.1 billion into non-interest-bearing deposit accounts and £0.1 billion into interest-bearing time deposits. These increases were partially offset by withdrawals of £3.5 billion from interest-bearing sight deposit accounts.
- The flow of sterling net lending to private sector companies and households (M4Lex) decreased to £0.0 billion in July, following an increase of £39.1 billion in June. July’s lending was mainly driven by Households and PNFCs borrowing £5.1 billion and £1.9 billion respectively, compared with £8.0 billion and £2.6 billion in June. These increases were offset by NIOFCs repaying £7.0 billion.
Secured gross lending decreased slightly to £25.9 billion in July, down from £26.9 billion in June, slightly below the 6-month average of £26.4 billion. Repayments increased slightly in July to £21.3 billion, from £21.2 billion, still above the 6-month average of £20.8 billion.
Net mortgage approvals (that is, approvals net of cancellations) for house purchases, which is an indicator of future borrowing, decreased to 56,100 in July, from 58,200 in June. Approvals for remortgaging (which only capture remortgaging with a different lender) increased to 34,500 in July, from 34,100 in June.
Nathan Emerson, CEO at Propertymark, comments:
“Recent months have seen lower levels of mortgage approvals and lending, reflecting continued pressure on household finances and caution around moving home.
“With the Autumn Budget due next month, many people may be holding back on major housing decisions until there is greater economic clarity, particularly groups such as first-time buyers, for example.
“Across the year, we have seen ambition across all nations regarding the delivery of new sustainable homes, alongside the infrastructure needed to support new developments. As the year draws to a close, it would be encouraging to see mortgage approvals and net lending find a firmer footing. However, this is likely to remain closely aligned with the wider global economy.”
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