Bank of England Money and Credit – July 2025
September 1, 2025
Key points:
- Net borrowing of mortgage debt by individuals decreased by £0.9 billion to £4.5 billion in July, compared to a £3.2 billion increase to £5.4 billion of net borrowing in June.
- Net mortgage approvals for house purchases increased by 800 in July, to 65,400. Approvals for remortgaging decreased by 2700 in July, to 38,900.
- Net borrowing of consumer credit by individuals rose slightly to £1.6 billion, from £1.5 billion in the previous month. Within this, net borrowing through credit cards slightly increased to £0.8 billion in July, from £0.7 billion in June. Net borrowing through other forms of consumer credit increased to £0.9 billion in July, from £0.7 billion over the same period.
- The annual growth rate of borrowing by large businesses increased from 6.7% to 8.0% in July. The annual growth rate of borrowing by SMEs increased from 0.3% to 0.9%, the highest since August 2021 (1.3%).
- Private non-financial corporations (PNFCs) borrowed, on net, £0.3 billion of finance in July, following net borrowing of £1.1 billion in June.
- The net flow of sterling money (known as M4ex) was £7.1 billion in July, compared to £11.4 billion in June. Within this, households increased their holdings of money by £7.3 billion. Additionally, PNFCs also increased their holdings of money by £0.5 billion, while NIOFCs decreased holdings by £0.6 billion.
- The flow of sterling net lending to private sector companies and households (M4Lex) was £7.7 billion in July, compared to £19.9 billion in June. This was driven by increases of £5.2 billion and £3.4 billion in net lending to households and PNFCs respectively, while partly offset by net repayments by NIOFCs of £1.0 billion.
Nathan Emerson, CEO of Propertymark, comments:
“Considering the many twists and turns within the wider economy currently, it’s extremely positive to see a further uplift in mortgage approvals. The resilience of the housing market is often a direct indicator of consumer confidence and affordability, and it has been reassuring to see forward momentum as the year has progressed.
“Hopefully, now that the Bank of England has taken the call to cut the base rate by a further quarter per cent, we should see lenders bringing additional levels of competition to the marketplace. Those already on fixed-term mortgage products should already be feeling the combined benefit of three base rate cuts across the year.”
You May Also Enjoy
London renters making it onto the ladder without a deposit
Developers helping London renters onto the property ladder without a deposit, when the Government won’t The latest insight from London’s largest lettings and sales estate agent brand, Foxtons, has revealed that despite the Government providing no new support in the recent Budget for first time buyers, a growing collaboration between developers and lenders is helping…
Read More 
Prime London Sees Post-Budget Surge in £2m+ Listings
The latest research from prime London property experts, Jefferies London, reveals that, just two weeks on from the Autumn Budget and its newly announced prime property surcharges, an estimated 444 homes priced at £2m or more have been listed for sale across the capital. These new listings account for around one in 10 (9%) of…
Read More 
2026 Will Test BTR’s Potential and Government’s Resolve
By Justine Edmonds, Head of Build to Rent / Leasing Strategies, LRG Throughout 2025 I have spent hours in meetings with and on discussion panels with institutional investors, developers and local authorities. And everything I’ve picked up on in the last year suggests that 2026 will be a crossroads for Build to Rent (BTR). The…
Read More 
December Cash Buyers on the Decline
So is a sale before Christmas still possible? New analysis from Springbok Properties reveals that the number of cash buyers declines in December, so any sellers who are keen to secure a quick sale ahead of Christmas might need to explore different avenues. Springbok Properties have studied historic data on the estimated number of cash…
Read More 
Breaking Property News 10/12/25
Daily bite-sized proptech and property news in partnership with Proptech-X. Fine & Country welcomes back Managing Director Nicky Stevenson Fine & Country is pleased to announce the return of Managing Director, Nicky Stevenson, following her maternity leave. Stevenson, who has played a central role in driving the brand’s growth and strengthening its position in…
Read More 
Rental demand drops to six-year low
Rental demand drops to six-year low as supply improves and rental growth slows to 2.2 per cent reports Zoopla Demand for rented homes has fallen by a fifth over the last year and is the lowest for six years. There are 15% more homes for rent than last year, boosting choice for renters UK…
Read More