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

New Build for Merseyside
Breaking News

First-time buyer demand falls sharply

First-time buyer demand falls sharply across Britain’s major cities, with Nottingham leading the decline The latest research by Yopa has shown that first-time buyer demand has dropped significantly across a number of major British cities, with Nottingham seeing the sharpest decline since the start of the year. Yopa analysed first-time buyer (FTB) demand based on…
Read More
Breaking News

Families to save hundreds of pounds through major homebuying overhaul

·        Buying or selling a home to be faster, cheaper, and easier under common-sense reforms ·        First-time buyers to save £710 on average, putting money back into people’s pockets ·        Proposals will halve number failed transactions, preventing last minute fall throughs, slashing weeks off the process and driving up standards across the board Hundreds of thousands of first-time…
Read More
Estate Agent Talk

Got a New Home in Nelson UK? Explore Stylish Furniture for Every Corner

Moving into a new home is always exciting, and if you’ve just settled down in Nelson, UK, now is the perfect time to furnish your space with stylish, functional, and long-lasting pieces. At AH Interiors Nelson, we bring you a wide range of modern and classic furniture that makes every corner of your home truly…
Read More
Breaking News

Annual house price growth steady in September

Annual rate of house price growth of 2.2% in September, similar to 2.1% seen in August Northern Ireland remained the top performing area with annual house price growth of 9.6% Outer South East weakest performing region, with 0.3% year-on-year rise   Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said: “The annual pace of…
Read More
Rightmove logo
Breaking News

Rightmove launches Online Agent Valuation to help agents connect with more vendors

Rightmove, the UK’s largest property platform, launches Online Agent Valuation, a new product for agents designed to give them more ways to reach prospective vendors. The consumer innovation delivers quality leads by connecting agents with home-owners who are serious about moving, but who would prefer to get a valuation from a local agent online. Rightmove…
Read More
Breaking News

September sees highest number of homes listed this year

September brings post-summer surge in home seller activity, with highest number of homes listed so far in 2025 The latest internal data from eXp UK has shown that September has delivered a notable surge in market activity, with the firm recording an average of 81 new properties listed every day over the course of the…
Read More