2 June 2026
If you are covering the latest Bank of England money and credit statistics, please see the following comment from Karen Noye, mortgage expert at Quilter:
“A combination of ISA season and the prospect of Rachel Reeves’ £12,000 cap on Cash ISA contributions for under-65s, due to take effect from April 2027, saw UK households pile £12 billion into ISAs in April, according to the latest Bank of England money and credit statistics.
“Savings were also bolstered elsewhere, with household deposits with bank and building societies rising to £5.8 billion in April, up from £5.6 billion in March. Alongside ISA inflows, a further £1.3 billion was added to non-interest-bearing accounts. Meanwhile, reliance on consumer credit remained broadly steady, with net borrowing of £1.9 billion in line with the previous six-month average. Within this, credit card borrowing edged up to £0.8 billion from £0.7 billion in March, while borrowing through other forms of credit such as personal loans and car finance eased slightly to £1 billion from £1.2 billion.
“The data also outlines what has been a turbulent period for the mortgage and housing market. Net mortgage borrowing fell to £4.4 billion in April, down sharply from £6.8 billion in March and below the six-month average of £5.1 billion. However, annual growth in net mortgage lending rose to 3.3% from 3.0%, and approvals, which are an indicator of future borrowing, rose to 65,900, up from 64,000. This likely reflects the slight easing of mortgage rates following the initial shock caused by the conflict in the Middle East.
“While the market has held up relatively well thus far, pressure on household finances is building. Higher energy costs and other inflationary pressures will weigh on people’s ability to save, and when combined with elevated mortgage rates, this is likely to dampen buyer appetite and slow activity in the months ahead. Those who had been hoping for a clear downward path in interest rates this year will have had their hopes dashed since the start of the conflict. While the Bank of England has paused for now, the outlook remains uncertain and will depend heavily on how global events feed through to inflation and energy markets.
“Mortgage rates will continue to be the key driver of activity, and while the sharp increases seen previously have eased slightly, there is not yet a clear trajectory downwards. In this environment, borrowers should review their options early and seek the support of a mortgage adviser to ensure they secure the best possible rates.”
