UK Mortgage Lending Surges Despite Rising Interest Rates

Mortgage lending in the UK surged to £7.7 billion in June, despite rising interest rates and economic uncertainty sparked by the conflict in the Middle East.

The Bank of England's money and credit report showed a significant increase in net borrowing of mortgage debt compared to May, when it was £3.3 billion.

Meanwhile, mortgage approvals for home purchases rose to 58,200 in June, up from 56,600 the previous month.

This modest rise in mortgage approvals could indicate some economic stability after recent Bank of England decisions to hold interest rates at 3.75%.

Nathan Emerson, chief executive at Propertymark, said: 'The increase in net mortgage approvals for house purchases in June suggests that buyers responded positively to a period of relative economic stability.'