EL7.AI
Macro EconomyMedium•29 July 2026•
1 min read

UK Mortgage Approvals Rebound as Rising Credit Card Debt Signals Household Strain

Key Facts

1UK mortgage approvals rose to 58,200 in June, exceeding the expected 57,200.
2The annual growth rate for credit card borrowing accelerated to 12.5% in June.
3Bank of England data showed default rates reached their highest level since 2009.

In a move reflecting the resilience of the British property market despite economic headwinds, official data showed an unexpected improvement in lending activity. UK mortgage approvals rose to 58,200 in June, exceeding the 57,200 expected by analysts. However, this rebound was accompanied by concerning signals regarding consumer solvency, as Bank of England data revealed that default rates have reached their highest levels since 2009.

The data suggests that households are increasingly turning to high-interest debt to cover essential expenses, with the annual growth rate for credit card borrowing accelerating to 12.5% in June. In a broader regional context, market data from July 23 showed consumer confidence at -35 in the Netherlands and 89.8 in Turkey, highlighting a mixed sentiment landscape for consumers across neighboring economies.

Investors should monitor how these credit strains impact the retail sector, especially after UK monthly retail sales grew by 1% on July 24, 2026, defying negative forecasts.