The Bank of England’s latest statistics on UK household and business borrowing and deposits reveal key economic trends influencing the country’s financial system. This summary presents the notable changes observed in September, providing insights into mortgage lending, consumer credit, business borrowing, and deposit flows.

Key Highlights:

• Mortgage Lending: Net borrowing of mortgage debt decreased by £0.3 billion to £2.5 billion. Mortgage approvals for house purchases rose to 65,600, the highest level since August 2022, with remortgage approvals also increasing to 30,800.
• Consumer Credit: Net consumer credit borrowing declined slightly to £1.2 billion from £1.4 billion in August. Credit card borrowing also fell from £0.5 billion to £0.4 billion, while other forms of consumer credit, such as car loans and personal loans, experienced a minor decrease.
• Business Borrowing: Private non-financial corporations (PNFCs) raised £3.2 billion in net finance, down from August’s £6.9 billion. Bond issuance and bank loans were the primary funding sources, partly offset by equity buybacks and commercial paper repayments.
• Household Deposits: Total household deposits grew by £8.2 billion in September, driven by increases in ISA contributions, interest-bearing sight accounts, and other deposit accounts.
• Money Supply and Lending Growth: The net flow of sterling money (M4ex) increased to £8.9 billion, while net lending (M4Lex) rose to £15.4 billion, led by lending growth to households, non-intermediate financial corporations, and private non-financial companies.

These trends reflect a dynamic UK economic environment, with increasing demand for mortgages and continued activity in consumer credit, accompanied by cautious business borrowing and significant household savings. The Bank of England will continue monitoring these developments to inform policy decisions. For detailed statistics, refer to the Bank’s Effective Rates (ER), Capital Issuance, and Bankstats releases.