Published by: UK Finance Search for original: Link
Key Takeaways
Despite household sentiment remaining weak due to economic uncertainties, retail spending and borrowing demonstrated growth in Q3 2025. Growth in retail store spending is driven by gradual wage increases helping household disposable income recover post the cost-of-living crisis. House purchase mortgage lending resumed growth in Q3, stabilising after initial disruptions caused by Stamp Duty adjustments earlier in the year. Affordability pressures remain high, but modest regulatory flexibility is supporting increased access to mortgage credit for some borrowers at the margins. The growth in mortgage refinancing activity after a slow first half underscores customers’ proactive approach to securing fixed rate deals as existing deals expire. Savings growth slowed but remained at decade highs, supported by improved real wage growth and heightened caution amid economic uncertainty. Mortgage arrears continue to decline and ar...
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