Economic Buzz: UK net mortage lending grows at 3.4% on year in Sep-26

Bank of England stated today that net borrowing of mortgage debt by individuals decreased to £3.9 billion in September, from £4.2 billion in August, below the previous 6-month average of £4.9 billion. The annual growth rate for net mortgage lending decreased to 3.4% in September, from 3.6% in August. Net mortgage approvals for house purchases decreased to 53,400 in September, below an average of around 58,800 over the previous 6-months. Approvals for remortgaging increased to 42,600 in September, from 34,000 in August.

Net borrowing of consumer credit by individuals decreased to £1.9 billion in September, from £2.7 billion in August, slightly below the previous 6-month average of £2.1 billion. Within this, net borrowing through credit cards was £0.7 billion in September, down from £1.3 billion in August. Net borrowing through other forms of consumer credit (such as car dealership finance and personal loans) decreased to £1.2 billion in September, from £1.4 billion in August.

Private non-financial corporations (PNFCs) borrowed, on net, £3.1 billion of finance in September, following net borrowing of £8.5 billion in August. Within total net finance raised, bank loans amounted to £10.6 billion of borrowing in September, following £6.4 billion net borrowing in August.

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