- Deposits in banks and building societies were up by £6.3 billion in June and £2 billion was paid into Cash ISAs (source: Money and Credit - June 2026 | Bank of England)
- There was an extra £1.6 billion paid into fixed-rate accounts, and £0.4 billion into accounts paying no interest, while £1.3 billion was withdrawn from easy-access accounts paying interest
- The average rate on new fixed accounts was 4.3%, up from 4.26% in May – but the average easy-access rate was unchanged at 1.65%
- Mortgage approvals for house purchases increased slightly, from 56,600 in May to 58,200 in June, although it’s still below the six-month average of 61,400
- The average rate on new mortgages increased from 4.22% in May to 4.35% in June
Sarah Coles, head of personal finance at AJ Bell, comments:
“Savers are taking a bit of a breather from the dash for Cash ISAs, as life got in the way of our savings plans. They still put in £2 billion – but that’s their lowest for more than 18 months. Meanwhile, mortgage approvals rose slightly, but remained pretty sluggish, as higher rates took a toll.
“The cutting of the allowance for the under 65s and the raising of tax on savings interest from April 2027, were announced in November last year, and between then and the end of April 2026, savers poured £8 billion more into Cash ISAs than they had in the same period a year earlier. However, since the dawn of the new tax year, the effect has been less striking. June delivered another £2 billion – compared to £3.6 billion in June a year earlier and £3.4 billion the year before that.
“It’s not over though, because we can expect a resurgence later in the tax year. There was always going to be a lull between the panic induced by the initial announcement, and the surge we can expect as the final deadline approaches, because life will always get in the way and people will always be motivated by a deadline. It’s still going to be another bumper year for Cash ISAs, and we could see next April breaking records.
“The flow into fixed rate savings accounts continued. Competition in the market has been fierce, keeping rates elevated at a time when some of the best easy access rates (excluding those with very short-term bonuses) were falling. More recently, this trend has continued, with the most competitive rate in the three-year market finally nudging back above 5%. The outlook is far from certain though, with so much depending on unpredictable geopolitical developments, so if you’re in the market for a fixed rate account, it may be worth taking advantage of deals while they last.
Mortgages
“Mortgage approvals for new purchases rose slightly in June. This is likely to owe something to the fact the Iran peace deal was announced on 23 June, which depressed oil prices, lowered inflation expectations and started a retreat for mortgage rates. It meant buyers ended the month in a better position. However, approvals are still pretty sluggish, so this isn’t exactly a busy market – it’s just a slightly less deathly one.
"In July, mortgage rates remain volatile, and affordability is still an issue – particularly in pricier parts of the country. It means some buyers will decide to take a summer break, especially as house prices are falling in some parts of the country, so hanging on for a while could get them a better deal. If you’re playing the waiting game, it’s worth using the opportunity to put yourself in the best possible position to buy – whether that’s by topping up a Lifetime ISA for this year or beefing up your emergency savings fund ready for the first expensive months after a move.”
