“Mortgage approvals and borrowing rose in June as those in a position to buy may have sought to lock in the relatively attractive rates on offer ahead of potential rises later in the year. Despite wider economic and policy uncertainty, the UK housing market remains relatively resilient.
“Since May, the warmer weather has boosted consumer spending, and that momentum will likely carry through to July as the sunshine and The World Cup gave consumers a welcome distraction from economic realities. June’s rise in borrowing suggests many turned to credit to foot the bill.
“Lenders and consumers alike will need to pay close attention to their financial exposures, and capital provisions, as peaking energy prices and subdued wages will continue to weigh heavy on households through the remainder of the year.”
