Net mortgage borrowing by UK households surged to GBP 7.7 billion in June 2026 from GBP 3.3 billion in May, far exceeding market expectations of GBP 3.95 billion and the previous six-month average of GBP 4.9 billion, despite rising borrowing costs. The annual growth rate of net mortgage lending also edged up to 3.6% from 3.5%. Gross mortgage lending rose slightly to GBP 27.4 billion from GBP 27.2 billion, remaining above the six-month average of GBP 26.0 billion. Meanwhile, repayments fell to GBP 21.3 billion from GBP 22.7 billion, although they continued to exceed the recent six-month average of GBP 20.4 billion. Meanwhile, the effective interest rate on newly drawn mortgages climbed to 4.35% in June from 4.22% in May, its highest level in more than a year. The average rate on the outstanding stock of mortgages also increased, reaching a record high of 3.96%.