Net mortgage borrowing by UK individuals fell to GBP 2.9 billion in May 2026, down from GBP 4.4 billion in April and below market expectations of GBP 4.6 billion. This marked the lowest level since May 2025 and was well under the six-month average of GBP 5.1 billion, as rising mortgage rates and weakened consumer confidence amplified by the Iran war have suppressed buyer demand. The annual growth rate for net mortgage lending edged up slightly to 3.4% in May, from 3.3% in April. Gross secured lending dipped to GBP 27.1 billion, from GBP 27.4 billion in April, but remained above the six-month average of GBP 25.3 billion. Meanwhile, repayments rose to GBP 22.9 billion in May, up from GBP 22.6 billion in April and above the six-month average of GBP 19.9 billion. The effective interest rate on newly drawn mortgages rose to 4.22% in May, up from 4.08% in April, while the rate on outstanding mortgages remained steady at 3.92%.