Money and Credit – May 2026
June 29, 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:
- Net borrowing of mortgage debt by individuals decreased to £2.9 billion in May, from £4.4 billion in April. This was below the previous 6-month average of £5.1 billion, and the lowest since May 2025 (£1.9 billion).
- Net mortgage approvals for house purchases decreased to 56,200 in May, below an average of 63,300 over the previous six months. Approvals for remortgaging also decreased, to 33,300 in May, from 51,200 in April.
- Net borrowing of consumer credit by individuals remained largely unchanged, when compared to April at £1.7 billion in May. This was slightly below the previous 6-month average of £1.9 billion. Within this, net borrowing through credit cards was £0.6 billion in May, down from £0.8 billion in April. Net borrowing through other forms of consumer credit (such as car dealership finance and personal loans) increased to £1.1 billion in May, from £0.9 billion in April.
- Private non-financial corporations (PNFCs) borrowed, on net, £1.1 billion of finance in May, following net borrowing of £5.4 billion in April. Within total net finance raised, bank loans amounted to £1.8 billion of borrowing in May, compared to £4.3 billion of net borrowing in April.
- The net flow of sterling money (M4ex) increased to £11.0 billion in May, from £9.2 billion in April. This was driven by non-intermediate other financial corporations (NIOFCs) and households increasing their holdings of money by £6.4 billion and £5.4 billion respectively. These increases were slightly offset by PNFCs decreasing their money holdings by £0.8 billion.
- The flow of sterling net lending to private sector companies and households (M4Lex) decreased to £0.6 billion in May, following an increase of £11.5 billion in April. May’s lower net lending was driven by NIOFCs repaying £6.9 billion, compared to £2.1 billion net borrowing in April. This was partly offset by households and PNFCs borrowing £4.2 billion and £2.2 billion respectively, compared with £5.0 billion and £4.4 billion in April, respectively.
Nathan Emerson, CEO at Propertymark, comments:
“A decline in net mortgage borrowing and a decrease in mortgage approvals reflects the continued caution many households are exercising when making significant financial commitments. Affordability remains a key consideration for many buyers, and any uncertainty around household finances or borrowing costs can influence purchasing decisions.
“Despite this, there remains underlying demand from people looking to move home. Propertymark members continue to see committed buyers in the market, and greater certainty around lending conditions, alongside increased housing supply, will be essential to restoring confidence and supporting a healthy level of housing market activity in the months ahead.”
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