# Mortgage lending increases despite elevated rates for homeowners

By Aneisha Beveridge — 2026-07-29

Mortgage lending was higher last month despite increases in rates for homeowners, according to Bank of England figures.

The central bank said in its regular money and credit report that net borrowing of mortgage debt jumped to £7.7 billion in June, compared with £3.3 billion in the previous month.

Meanwhile, the number of mortgage approvals for home purchases also rose to 58,200 for the month, compared with 56,600 in May.

Aneisha Beveridge, research director at Connells Group, said: “While mortgage rates have edged higher in recent months, the market continues to move forward, with activity increasingly driven by buyers and homeowners who need to move rather than those waiting for the perfect rate environment.

“Higher loan-to-income lending has helped some borrowers access larger loans and supported demand, particularly among first-time buyers.

“However, affordability remains stretched for many households, meaning the benefits haven’t been felt evenly across the market.

“We’ve also seen borrowers become much more proactive in managing their mortgage costs. After the volatility in rates seen over the last few years, homeowners are keeping a close eye on the market and often starting the remortgage process several months before their current deal ends.

“Remortgage activity remains below last year’s levels, but that’s partly a reflection of how many borrowers acted early to secure new deals during the spring when mortgage rates began to rise. As a result, some activity has effectively been pulled forward rather than lost altogether.

“Overall, the latest figures suggest the housing market remains resilient. While higher borrowing costs continue to weigh on affordability, a period of relative economic stability has helped underpin buyer confidence and keep transactions moving.”

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