UK Mortgage Lending Sees Unexpected Boost Amid Rising Interest Rates

Mortgage lending saw a significant increase in June despite elevated interest rates for homeowners, according to Bank of England figures.

The central bank's regular money and credit report revealed that net borrowing of mortgage debt jumped to £7.7 billion in June, up from £3.3 billion in the previous month.

This rise comes amidst a backdrop of steadily increasing mortgage rates, driven by concerns over inflation caused by the conflict in the Middle East.

The average two-year fixed residential mortgage rate stood at 5.62% on Wednesday, while a five-year fix was priced at 5.66%, according to Moneyfacts data.

Nathan Emerson, chief executive of Propertymark, attributed the modest rise in mortgage approvals to 'relative economic stability', but noted that activity has yet to fully recover.