Bank of England Money and Credit Report – January 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 rose by £0.9 billion, to £4.2 billion in January.
  • Net mortgage approvals for house purchases decreased by 300 to 66,200 in January, compared to an increase of 400 in December. Approvals for remortgaging increased by 2,200 to 32,900, after falling for the previous two months.
  • Net consumer credit borrowing by individuals was £1.7 billion in January, up from £1.1 billion in the previous month. Within this, net borrowing through credit cards increased to £1.1 billion from £0.4 billion, and was the highest increase since November 2023.
  • During January, private non-financial corporations (PNFCs) repaid, on net, £2.4 billion of finance, compared to repayments of £2.9 billion in December.
  • The net flow of sterling money (known as M4ex) was £25.7 billion in January, compared to £10.5 billion in December. This was mostly driven by non-intermediate other financial corporations’ (NIOFCs’) holdings of money, which increased by £10.7 billion.
  • The net flow of sterling net lending to private sector companies and households (M4Lex) was £7.2 billion in January, compared to £5.0 billion in the previous month. Households accounted for £4.6 billion of the January flow.

Lending to and deposits from individuals

Mortgage lending:

Net borrowing of mortgage debt by individuals increased by £0.9 billion to £4.2 billion in January, following an increase in net borrowing of £1.1 billion in December. The annual growth rate for net mortgage lending rose to 1.8% in January from 1.5% in December, continuing the upward trend observed since April 2024. Gross lending was little changed in January at £21.3 billion, while gross repayments decreased to £16.3 billion, from £18.5 billion in December.

Net mortgage approvals (that is, approvals net of cancellations) for house purchases, which is an indicator of future borrowing, decreased by 300 to 66,200 in January, following an increase of 400 in December. Approvals for remortgaging (which only capture remortgaging with a different lender) increased by 2,200 to 32,900 in January, after falling over the previous two months.

The ‘effective’ interest rate – the actual interest paid – on newly drawn mortgages increased by 4 basis points, to 4.51% in January. The rate on the outstanding stock of mortgages was 3.81% in January, up from 3.79% in December.

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

Breaking News

Popping the Asking Price Bubble

Where in the Uk Can Buyers Snap Up Property Bargains and Where Properties Go for a Premium Above Asking Price   New research from fast selling property company, Upstix has uncovered the UK’s most surprising postcodes for snapping up a property at bargain prices this year, highlighting a widening gap between sellers’ expectations and the…
Read More
Rightmove logo
Breaking News

Highest demand to lease office space since pre-pandemic

The latest insights from the UK’s number one commercial property website Rightmove, reveals that the number of unique enquiries to lease office space is at its highest point since pre-pandemic, as businesses look for spaces that meet modern requirements. Demand to lease office space is 19% higher than the same period a year ago and…
Read More
Planning disputes on new build land
Estate Agent Talk

Planning consultations for major infrastructure to be streamlined

Robert Bruce, a planning and infrastructure partner at law firm Freeths LLP, said he: “Welcomed the change as a significant step to speeding up the DCO process and the focus on the quality and effectiveness of the consultation, rather than box ticking and a risk averse approach to pre-application consultation due to the current legal…
Read More
Breaking News

‘The property ladder pulls further away’ warns Open Property Group

For many first-time buyers across England, the dream of homeownership continues to slip further out of reach. Despite rising wages, soaring house prices are making it harder than ever to get on the property ladder. A leading UK professional house buying company ‘Open Property Group’ based in Buckinghamshire UK, has raised concerns over the ongoing…
Read More
Estate Agent Talk

How Long It Takes to Buy a House in the UK: 5 Common Delays That Can Slow Down Your Home Purchase

Wondering how long it takes to buy a house in the UK? The average timeline ranges from 8 to 22 weeks, but even that can stretch significantly due to unexpected delays, especially if you’re a first-time buyer or caught in a chain. That’s why working with experienced professionals like Belvoir — one of the UK’s…
Read More
Love or Hate Rightmove
Breaking News

Rightmove to host Renters’ Rights Bill webinar with Guild of Lettings

Rightmove is hosting a live and interactive webinar session with the Guild of Lettings to help agents get Renters’ Rights Ready. The webinar will take place from 10:00am – 11:00am on Wednesday 23rd April. Susie Crolla, Managing Director for the Guild of Lettings, will be joining Rightmove to help agents with questions they may have about…
Read More