FX.co ★ UK Mortgage Lending Slumps in July, Signalling Cooling Housing Demand

Mortgage lending in the United Kingdom dropped sharply in July 2026, pointing to a notable cooling in housing market activity. According to the latest data updated on 1 September 2026, new mortgage lending fell to £4.29 billion in July, down from £7.68 billion in June 2026.

The steep month-on-month decline suggests that potential homebuyers may be turning more cautious, with weaker borrowing possibly reflecting affordability pressures or shifting expectations on interest rates and house prices. While one month’s data does not establish a trend, the retreat from June’s stronger figure is likely to draw close attention from lenders, policymakers and investors seeking early signs of a broader slowdown in the UK property market.