London, January 6, 2026, 08:35 (GMT) — Regular session
- Lloyds shares rose 1.6% to 101.51p, after touching a 52-week high of 101.70p.
- Bank of England data showed consumer borrowing rose £2.08 billion in November while mortgage approvals dipped.
- Investors are watching mortgage pricing pressure and Lloyds’ Jan. 29 results for the next signal.
Lloyds Banking Group (LLOY.L) shares rose 1.6% to 101.51 pence by 0835 GMT, after touching 101.70 pence — the top of their 52-week range. 1
The move puts the spotlight back on a familiar pressure point for the lender: UK mortgages. With borrowers refinancing and lenders fighting for new business, investors are trying to read what happens next to volumes and pricing into the results season.
Bank of England data on Monday showed net consumer borrowing increased by 2.08 billion pounds ($2.79 billion) in November — the biggest rise since November 2023 and above forecasts in a Reuters poll. Mortgage approvals for house purchase slipped to 64,530 from 65,010, and “speculation about tax rises ahead of November’s Budget didn’t influence households’ spending decisions too much,” said Alex Kerr, a UK economist at Capital Economics. 2
Mortgage pricing is also shifting quickly. HSBC has cut rates across a range of residential and buy-to-let (landlord) mortgages, with new deals taking effect on Monday, a move that brokers said could trigger a price war, the Guardian reported. The paper said about 1.8 million homeowners are expected to refinance mortgages this year as fixed-rate deals reset. 3
Cheaper mortgages can lift demand and ease pressure on stretched borrowers, but they can also squeeze net interest margin — the gap between what a bank earns on loans and pays on deposits. For retail-focused lenders such as Lloyds, small changes in that spread can swing earnings.
On the charts, the stock has pushed above the 100-pence level, a psychological marker for many traders. Investing.com put the 200-day moving average — a widely watched trend gauge — at about 96.4 pence.
The next near-term read on the UK economy comes later on Tuesday with December business surveys due, including the UK PMI — a survey-based snapshot of activity in services and manufacturing. The next UK inflation update is scheduled for Jan. 21, and the Bank of England’s next policy decision is due on Feb. 5. 4
But a faster-than-expected mortgage rate war would bite first, pulling down margins before higher volumes show through. The sharp rise in consumer borrowing also cuts both ways: it supports near-term revenue, but it can leave lenders more exposed if household finances weaken.
