The latest monthly Money and Credit report showed that mortgage approvals for house purchases dropped to 64,530 from 65,010 in October

UK mortgage approvals dipped in November 2025, while consumer borrowing rose, according to figures released on Monday by the Bank of England.

The latest monthly Money and Credit report showed that mortgage approvals for house purchases dropped to 64,530 from 65,010 in October.

Net borrowing of mortgage debt increased to £4.5 billion in November, following a decrease of £1 billion to £4.2 billion in October.

The ‘effective’ interest rate – the actual interest paid – on newly-drawn mortgages rose for the first time since February 2025 to 4.20% in November from 4.17% the month before. The rate on the outstanding stock of mortgages was 3.90%, up from 3.89%.

The report also showed that net borrowing of consumer credit by individuals increased to £2.1 billion in November from £1.7 billion in October. Within that, net borrowing through credit cards was £1 billion, up from £0.7 billion in October. Net borrowing through other forms of consumer credit, such as car dealership finance and personal loans, nudged up to £1.1 billion from £1 billion.

Matt Swannell, chief economic advisor to the EY ITEM Club, pointed out that despite the dip in mortgage approvals, market activity continues to run above post-pandemic norms.

Firm levels of activity reflect the improvement in mortgage affordability over the past couple of years, but the big gains are now behind us. Pay growth slowed in 2025 and is expected to cool further this year, he said.

In addition, mortgage rates have fallen considerably in recent years, and though the Monetary Policy Committee (MPC) has emphasised that further rate cuts are likely, its recent guidance has been cautious, he said.

He added: This suggests the scope for swap rates and mortgage rates to fall this year is limited. With further mortgage affordability gains likely to be modest, demand is expected to plateau over the next couple of years, although tight supply points to a gradual rise in house prices.