Mortgage Borrowing Surges in June, but Approvals Remain Below Average

Mortgage borrowing surged in June, according to the latest Bank of England (BoE) Money and Credit report. Net mortgage approvals for house purchases rose to 58,200 in June, although this figure remains below the average of around 61,400 over the past six months.

The net borrowing of mortgage debt by individuals increased to £7.7bn in June from £3.3bn in May, exceeding the previous six-month average of £4.9bn. Approvals for remortgaging also saw a notable increase, rising to 34,200 in June from 33,800 in May.

Nathan Emerson, chief executive at Propertymark, attributed the rise in net mortgage approvals to relative economic stability and easing inflation. However, he cautioned that while confidence may be improving, activity has yet to fully recover. Ongoing uncertainty in the Middle East and higher household costs remain significant headwinds for many aspiring homeowners.