Barclays said this was mainly driven by economic conditions that “resulted in general mortgage market suppression, including higher mortgage payments due to higher rates”. 

Some 0.2% of its book was in arrears, flat on the same period a year ago. 

Barclays UK closed the period with a mortgage book of £161.3m, slightly down from a figure of £163.6 last year. 

The average loan to value (LTV) of its portfolio was flat at 53%, as was the average LTV of new lending, which remained at 63%. 

The bank’s net interest margin (NIM) contracted from 3.2% in H1 2023 to 3.15% this year. 

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Citing an improved macroeconomic outlook and high-quality mortgage portfolio, Barclays reduced its credit impairment charge from £213m last year to £61m in the six months to June. 

Barclays UK reported a profit before tax of £1.5bn, a slight rise on its £1.4bn pre-tax profit in H1 2023. Its profit after tax figure was £1.12bn, up from £1bn last year. 

Barclays UK also said it was on track to complete its acquisition of the Tesco Bank mortgage portfolio by 1 November, subject to High Court approval.