1 December 2025
If you are covering the latest Money and Credit statistics, please see the following comment from Ian Futcher, financial planner at Quilter:
The latest Money and Credit data show that households were putting major financial decisions on hold while waiting for clarity on housing policy. In October, net mortgage borrowing by individuals fell back to £4.3 billion, down from £5.2 billion in September. Net mortgage approvals for house purchase slipped to 65,000, and remortgage approvals dropped to 33,100, which is the lowest since February. This slowdown reflects the uncertainty surrounding housing-related reforms in the run up to the budget, which led many would-be buyers and movers to sit on their hands until they knew how the changes might affect them.
Because the budget only arrived in the final days of November, it is likely that much of next month’s data will also reflect this pre-budget caution. Only now that the detail has been released should those who had delayed decisions begin to move forward with home purchases, remortgaging or switching deals. There will still be some higher value homeowners considering their position carefully if they expect to be affected by the so-called mansion tax, but for most people the policy picture is now clearer.
The figures also show continued sensible money management from households who are working hard to rebuild financial resilience. In October, households added £6.8 billion in net deposits, including over £4 billion into ISAs and other interest-bearing accounts. This is notable given the recent changes to cash ISA rules that will slash the limit on cash ISAs to £12,000 apart from those over 65.
Consumer credit borrowing remains modest. Net borrowing fell to £1.1 billion in October, down from £1.4 billion in September, with both credit card and personal loan borrowing easing slightly. This signals that people are being cautious about taking on high-cost debt at a time when costs remain elevated.
Overall, the data tell the story of a market temporarily subdued by policy uncertainty rather than a lack of demand. With the budget now behind us, the housing market should gradually regain its footing, although the recovery is likely to be steady rather than swift as households continue to balance their spending, borrowing and saving decisions carefully alongside relatively high interest rates.
