Bank of England mortgage lending doubles in June as approvals edge up

Bank of England data show that net mortgage lending jumped from £3.3 bn in May to £7.7 bn in June, the highest level since March 2025. Mortgage approvals also rose modestly, reaching 58,200 in June from 56,565 in May, but remained below the six‑month average of about 61,400.

The increase comes as the Consumer Prices Index fell to 2.6 % in June, down from 2.8 % in May, reinforcing expectations that the Monetary Policy Committee will keep the Bank Rate at 3.75 % at its July meeting. Analysts note that the surge may reflect borrowers locking in rates before a potential rise tied to the renewed US‑Iran conflict and higher energy prices.

Industry figures warned of continued pressure on affordability. SPF Private Clients chief executive Mark Harris said, “Mortgage rates have risen back to the same level seen a month ago amid renewed tensions in the Middle East.” Propertymark CEO Nathan Emerson added that while approvals suggest improving confidence, activity has not yet returned to long‑term norms.