5 January 2026
If you are covering the latest Bank of England money and credit statistics, please see the following comment from Ian Futcher, financial planner at Quilter:
“The latest Money and Credit data from the Bank of England show £5.1bn was ploughed into ISAs ahead of the late November budget as savers pre-empted the Chancellor’s plans.
“The rumour mill had been in overdrive in the lead up to the budget, and those surrounding Rachel Reeves’ ISA changes seemingly spurred more people to pile money into their savings. Households deposited an additional £8.1bn with banks and building societies in November, up considerably from £6.7bn in October. £5.1bn was ploughed into ISAs, a notable increase given the Chancellor has since declared she will slash the cash ISA limit to £12,000 from April 2027 for people under the age of 65.
“Elsewhere, many households continued to hold off on making any big financial decisions as they awaited clarity from the budget. Net mortgage approvals, an indicator of future borrowing, fell to 64,500, while net mortgage borrowing by individuals rose only slightly to £4.5bn in November, a modest uptick given it followed a £1bn decrease to £4.2bn in October.
“By contrast, approvals for remortgaging increased by 3,200 to 36,600 in November. This was likely driven by lower mortgage rates thanks to swap rates reducing throughout the month. Now the budget has passed, and households have more certainty over what is to come, we will likely see a gradual pick up in momentum as those who had delayed home moves or changes to their mortgage deals feel more comfortable to do so.
“Meanwhile, the countdown to Christmas saw a heavier reliance on consumer credit. Net borrowing of consumer credit rose to £2.1bn in November, up from £1.7bn in October. Credit card borrowing was the biggest driver, rising to £1.0bn in November, up from £0.7bn in October, while personal loan borrowing rose slightly to £1.1bn from £1.0bn.
“For now, the data continue to demonstrate the impact of budget uncertainty rather than an overall lack of demand. Now that the budget has passed and interest rates have been cut once more, the housing market should gradually pick back up, but households will continue to need to balance their spending, borrowing and saving decisions carefully.”
