Bank of England Money and Credit Report – January 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:
- et borrowing of mortgage debt by individuals decreased to £4.1 billion in January, from £4.5 billion in December, below the previous 6-month average of £4.5 billion.
- Net mortgage approvals for house purchases decreased to 60,000 in January, below an average of around 64,100 over the previous 6-months. Approvals for remortgaging decreased slightly to 38,100 in January from 38,400 in December.
- Net borrowing of consumer credit by individuals increased to £1.8 billion in January, from £1.7 billion in December, in line with the previous 6-month average of £1.8 billion. Within this, net borrowing through credit cards was £0.9 billion in January, up from £0.8 billion in December. Net borrowing through other forms of consumer credit (such as car dealership finance and personal loans) remained unchanged at £0.9 billion in January.
- Private non-financial corporations (PNFCs) borrowed, on net, £5.1 billion of finance in January, following net repayments of £1.2 billion in December. Within total net finance raised, bank loans amounted to £2.8 billion of borrowing in January, following £6.2 billion of net borrowing in December.
- The net flow of sterling money (M4ex) was -£7.1 billion in January, compared to £13.9 billion in December. This was largely driven by NIOFCs and PNFCs decreasing their holdings of money by £6.3 billion and £5.0 billion respectively. These decreases were partially offset by households increasing their holdings of money by £4.2 billion, within this households deposited £5.2 billion into ISAs, £3.1 billion into non-interest-bearing deposit accounts and £2.5 billion into interest-bearing sight deposit accounts.
- The flow of sterling net lending to private sector companies and households (M4Lex) was £10.5 billion in January, compared to £13.1 billion in December. January’s lending was driven by households, PNFCs, and NIOFCs borrowing £4.8 billion, £2.9 billion and £2.8 billion respectively, compared to borrowings of £5.5 billion, £5.1 billion and £2.5 billion respectively in December.
Nathan Emerson, CEO of Propertymark, comments:
“As we progress further into 2026, we are continuing to see movement across the housing market, though the latest figures suggest a period of moderation rather than acceleration.
“Encouragingly, Propertymark member agents are reporting a near 25% increase in the number of viewings per available property compared to twelve months ago, demonstrating that buyer interest is clearly present. However, we are yet to see this heightened activity fully translate into completed transactions, reflecting an evident degree of caution among consumers.
“Although affordability conditions have improved compared to a year ago, many buyers are still carefully assessing their financial position before committing. We anticipate confidence will strengthen gradually as stability around borrowing costs continues to filter through, but for now the market is adjusting at a steady and measured pace.”
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