The Bank of England (BoE)’s latest Money and Credit Statistical Release to the end of August 2025 - 1st October 2025

The Bank of England (BoE) has published its latest Money and Credit report. Some of the main highlights include:

• Households deposited, on net, an additional £5.4bn with banks and building societies in August, following net deposits of £7.1bn in July. This was mainly driven by households depositing an additional £2.6bn into interest-bearing sight accounts, £2.3bn into ISAs and £0.7bn into non-interest-bearing sight accounts. These inflows were partially offset by withdrawals of £1.9bn from interest-bearing time accounts. (Sight accounts are accounts from which money can be withdrawn either without notice, or after a very short notice period. Time accounts pay a fixed rate of interest until a given maturity date. Funds placed in a time account usually cannot be withdrawn prior to maturity or they can perhaps only be withdrawn with advanced notice and/or by having a penalty assessed.)

• The effective interest rate paid on individuals’ new time deposit accounts with banks and building societies decreased by 5 basis points, to 3.79% in August from 3.84% in July. The effective rate on the outstanding stock of time deposit accounts fell by 4 basis points to 3.49% from 3.53% in July. The effective rate on the outstanding stock of sight deposit accounts was 1.84% in August, down from 1.89% in July.

• Individuals borrowed, on net, £4.3bn of mortgage debt in August, £0.2bn down from a £0.9bn decrease in July to £4.5bn. The annual growth rate for net mortgage lending increased from 2.9% to 3.0% in August. Gross lending decreased to £22.7bn in August, from £24.5bn in July. Gross repayments increased, to £20.0bn in August, from £19.8bn in July.

• Net mortgage approvals for house purchases (that is, approvals net of cancellations), which is an indicator of future borrowing, decreased by 500 to 64,700 in August. Net approvals for remortgaging (which only capture remortgaging with a different lender) decreased in August, by 900 to 37,900.

• The ‘effective’ interest rate – the actual interest rate paid – on newly drawn mortgages decreased for the sixth consecutive month, to 4.26% in August, down from 4.28% in July. However, the rate on the outstanding stock of mortgages increased slightly to 3.89% in August from 3.88% in July.  

• Net borrowing on consumer credit by individuals remained flat at  £1.7bn in August, from £1.6bn in July. Within this, net borrowing through credit cards slightly decreased to £0.7bn in August, from £0.8bn in July. Net borrowing through other forms of consumer credit (such as car dealership finance and personal loans) increased slightly to £1.0bn in August from £0.9bn in July. The annual growth rate for all consumer credit increased slightly to 7.1% in August from 7.0% in July. The annual growth rate for credit card borrowing increased to 10.5% in August from 10.1% in July, and the annual growth rate for other forms of consumer credit slightly increased to 5.7% from 5.6% in July.

• The effective interest rate on interest-charging overdrafts increased by 6 basis points, from 21.47% in July to 21.53% in August. The effective rate on interest-charging credit cards decreased by 23 basis points during this period, from 21.65% to 21.42%. The effective rate on new personal loans to individuals increased, by 4 basis points, from 8.28% in July to 8.32% in August.

You can read the full BoE Money and Credit Statistical Release here.

Source: Techlink Professional. This is a news bulletin and is up-to-date as of the date of publishing. Please check the publishing date at the top of the article.