Bank of England Money and Credit Report – February 2025

bank of england interest rate

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 by £0.9 billion, to £3.3 billion in February, following an increase in net borrowing of £0.8 billion in January.

Net mortgage approvals for house purchases decreased by 600 to 65,500 in February, following a decrease of 400 in January. Approvals for remortgaging decreased by 800 to 32,000, following an increase of 2,100 in the previous month.

Net consumer credit borrowing by individuals was £1.4 billion in February, down from £1.7 billion in the previous month. Within this, net borrowing through credit cards decreased to £0.8 billion from £1.1 billion.

During February, private non-financial corporations (PNFCs) repaid, on net, £1.2 billion of finance, compared to net repayments of £2.3 billion in January.

The net flow of sterling money (known as M4ex) was £1.2 billion in February, compared to £25.1 billion in January. Within this, households and non-intermediate other financial corporations (NIOFCs) increased their holdings of money, by £4.3 billion and £1.2 billion respectively, while PNFCs decreased their holdings of money by £4.3 billion.

The net flow of sterling lending to private sector companies and households (M4Lex) was £5.1 billion in February, compared to £8.2 billion in January. Households accounted for £4.2 billion of the February flow.

Lending to and deposits from individuals

Mortgage lending 

Net borrowing of mortgage debt by individuals decreased by £0.9 billion to £3.3 billion in February, following an increase in net borrowing of £0.8 billion in January. The annual growth rate for net mortgage lending was little changed at 1.9% in February. Gross lending increased to £24.3 billion in February, from £21.7 billion in January, and was the highest since November 2022 (£24.9 billion). Gross repayments also increased in February, to £19.8 billion from £16.3 billion.

Net mortgage approvals (that is, approvals net of cancellations) for house purchases, which is an indicator of future borrowing, decreased by 600 to 65,500 in February, following a decrease of 400 in January. Approvals for remortgaging (which only capture remortgaging with a different lender) decreased by 800 to 32,000 in February, following an increase of 2,100 in January.

EAN Breaking News

Breaking News from the team at Estate Agent Networking. Have a new story to share with us? Then please get in contact today! When and where we can we will refer to third party websites with a 'live link back' where news was released first.

You May Also Enjoy

Estate Agent Talk

Why Your Charger is the Silent Hero of Remote Work Culture

Telecommuting has transformed the concept of productivity. Whether it is the replacement of conference rooms with video calls or the cloud-based apps managing group work, the digital transformation has had an impact on virtually all areas of our work-life. Yet, as we curl around and argue the need for a faster Wi-Fi connection, ergonomic office…
Read More
Breaking News

Latest HMRC UK property transactions report

Headline statistics Headline statistics from the latest transactions data include: the provisional seasonally adjusted estimate of the number of UK residential transactions in July 2025 is 95,580, 4% higher than July 2024 and 1% higher than June 2025 the provisional non-seasonally adjusted estimate of the number of UK residential transactions in July 2025 is 101,070,…
Read More
Estate Agent Talk

New property taxes could be last nail in the coffin for housing investment

A new property tax could prove to be the final “nail in the coffin” for property as an investment, warns Rathbones, one of the UK’s leading wealth managers. According to reports, the Treasury is examining options for property taxes ahead of the Budget – including a levy on homes sold for more than £500,000, the…
Read More
Breaking News

Industry reacts as Landlords to be hit with N.I tax

The Government is considering a major change to the way landlords are taxed, with Chancellor Rachel Reeves weighing up plans to apply National Insurance (NI) contributions to rental income as part of her upcoming Autumn Budget. Currently, rental income is subject to income tax but not NI. However, by expanding NI to cover this additional…
Read More
Overseas Property

Brits Are Flocking to Australia in 2025 

The end of summer is always a busy time for international moves, and 2025 is no exception. So far this year, the number of people planning to move abroad has risen by 11% compared to the first half of 2024, according to Compare My Move.  What’s changed is where Brits are choosing to go. Australia…
Read More
Breaking News

UK reports rising property market momentum

eXp UK reports rising property market momentum as sellers return and more sales are agreed The latest internal data from eXp UK has revealed that housing market momentum is continuing to build, with more homes coming to market and a greater number of sales being agreed. eXp UK analysis is based on the firm’s own…
Read More