UK's net mortgage lending in June soared to 7.7 billion pounds, far exceeding expectations

⑴ In June, UK net household mortgage borrowing surged from £3.3 billion in May to £7.7 billion, far exceeding market expectations of £3.95 billion and the six-month average of £4.9 billion, despite rising borrowing costs. The annual net mortgage growth rate edged up from 3.5% to 3.6%. ⑵ The total value of mortgages increased slightly from £27.2 billion to £27.4 billion, higher than the six-month average of £26 billion; repayment amounts fell from £22.7 billion to £21.3 billion, but remained above the six-month average of £20.4 billion. The actual interest rate for new mortgages rose from 4.22% to 4.35%, the highest in over a year; the average interest rate for outstanding mortgages climbed to a historic high of 3.96%. ⑶ Net approvals for home purchase mortgages rose from an upwardly revised 56,600 in May to 58,200, above expectations of 57,100. Despite the increase, approvals remain close to a two-year low and below the six-month average of around 61,400, reflecting the impact of high borrowing costs. Net approvals for remortgages by different lenders edged up from 33,800 to 34,200.