UK mortgage lending is expected to grow more slowly this year than in 2025 – while lending by banks to businesses is set to nearly halve amid global and economic uncertainty, according to an economic forecasting group.
The EY Item Club bank lending forecast said the net increase in the overall value of mortgage lending will slow to 2.5% this year, compared with a 3% rise in 2025, as limited improvements in affordability and borrowing costs quell housing demand.
