FX.co ★ UK Mortgage Lending Drops Sharply in May, Signalling Cooling Housing Demand

Mortgage lending in the United Kingdom fell sharply in May 2026, underscoring signs of cooling demand in the housing market. According to the latest data updated on 29 June 2026, new mortgage lending declined to £2.89 billion in May, down from £4.37 billion in April 2026.

The sizeable month‑on‑month drop in lending volumes suggests that potential homebuyers may be becoming more cautious, whether due to borrowing costs, affordability pressures or broader economic uncertainty. While one month’s data does not establish a trend, the pullback from April’s level will be closely watched by analysts and lenders as they assess the resilience of the UK housing sector heading into the second half of 2026.