UK household interest rates: secured loans
UK household interest rates: secured loans stood at 4% in Aug 2026, according to Bank of England. It is one of the indicators in the Savings and loan rates table (Value · Monthly), with a complete series running from Jan 2016 to Aug 2026. The complete series with an interactive chart, free to download.
This indicator in the Savings and loan rates table
| Indicator | 08-2026 | 07-2026 | 06-2026 | 05-2026 | 04-2026 | 03-2026 | 02-2026 | 01-2026 | 12-2025 | 11-2025 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Households | |||||||||||
| Households: secured loans, outstanding | 4 | 3.97 | 3.96 | 3.92 | 3.92 | 3.93 | 3.95 | 3.9 | 3.92 | 3.9 | |
| Households: secured loans, new business | 4.6 | 4.45 | 4.35 | 4.22 | 4.08 | 4.03 | 4.1 | 4.09 | 4.15 | 4.2 |
Understanding UK household interest rates: secured loans
Average percentage charges levied by monetary financial institutions across the United Kingdom on resident household secured lending balances reflect the effective cost of existing mortgages and property-backed credit. This stock measure aggregates all outstanding housing loans, encompassing both variable rate arrangements that fluctuate automatically with benchmark rates and older fixed-rate contracts established years prior. Secured loans differ from unsecured borrowing through the presence of residential property collateral, which alters risk weighting and dictates the structural divergence in interest rates between these lending categories.
Interpreting this monthly indicator necessitates understanding that aggregate borrowing costs adjust slowly as legacy fixed-rate deals expire and borrowers transition to current market pricing. Analysts comparing this series with quoted headline mortgage rates must account for the difference between actual amounts paid on diverse historical portfolios and advertised rates for new applicants. Revisions to early data releases emerge occasionally as lenders refine their portfolio classifications. Month-to-month changes are typically muted, making period-on-period comparisons less informative than tracking broader multi-year trajectories across the housing finance cycle.
Frequently asked questions
- What types of borrowing are included in this secured loan category?
- The measure primarily captures residential mortgages and property-backed loans extended to households by regulated financial institutions.
- Why does this outstanding rate move slower than official interest rate changes?
- Many households remain locked into multi-year fixed-rate mortgages agreed previously, insulating them temporarily from recent monetary policy adjustments.
- Can this figure be compared directly to new mortgage quotation rates?
- No, outstanding rates blend historical and current contracts across all borrowers, whereas quoted rates show only what lenders offer new applicants today.