Target Group comments on BoE Money and Credit

29 July 2026

Melanie Spencer, growth director at Target Group, said:

“An increase in both net mortgage borrowing and approvals shows there is still underlying demand in this market, despite a very challenging backdrop. While we know that lenders have increased pricing in recent weeks due to the rise in swap rates, there is equally potential buyers out there that have had enough of the crisis fatigue and want to kick on with plans. With no signs of an end to this conflict, lenders will continue to face a tug of war between prudent pricing and the need to meet their own lending targets and ambitions for market share.

“It’s yet another reminder that lenders are operating in a market where conditions can change rapidly. Operational agility is therefore just as critical as pricing itself, ensuring firms pair efficient, scalable and tech-enabled solutions with the right capabilities – either in-house through digital transformation or outsourced to the right partners. The ability to respond quickly to changing funding costs, borrower demand and market sentiment will be crucial to support intermediaries and build momentum in the months ahead.”