The FCA and the Prudential Regulatory Authority (PRA) both have responsibility for the regulation of mortgage lenders and administrators. We jointly publish the mortgage lending statistics every quarter.
Since the beginning of 2007, around 340 regulated mortgage lenders and administrators have been required to submit a Mortgage Lending and Administration Return (MLAR) each quarter, providing data on their mortgage lending activities.
Key findings
- The outstanding value of all residential mortgage loans decreased by 0.1% from the previous quarter to £1,654.3 billion, and was 0.8% lower than a year earlier (Table A).
- The value of gross mortgage advances increased by 18.6% from the previous quarter to £62.2 billion, the first increase since 2022 Q3, but remained 27.6% lower than a year earlier (Table A and Chart 1).
- The value of new mortgage commitments (lending agreed to be advanced in the coming months) decreased by 16.5% from the previous quarter to £51.5 billion, and was 41.4% lower than a year earlier (Table A and Chart 1).
- The proportion of lending to borrowers with a high loan-to-income (LTI) ratio increased by 3.9pp from the previous quarter to 49.3%, but remained 2.1pp lower than a year earlier (Chart 4).
- The share of gross mortgage advances for house purchase for owner occupation increased by 3.5pp from the previous quarter to 57.4%, and was 1.3pp higher than a year earlier (Chart 5).
- The share of gross advances for remortgages for owner occupation decreased by 2.7pp from the previous quarter to 29.4%, but remained 4.4pp higher than a year earlier (Chart 5).
- The share of gross mortgage advances for buy-to-let purposes (covering house purchase, remortgage and further advance) decreased by 0.7pp from the previous quarter to 7.5%, the lowest since 2010 Q3, and 5.0pp lower than a year earlier (Chart 5).
- New arrears cases decreased by 0.3pp from the previous quarter, to 15.8% of the total outstanding balances with arrears, but remained 5.1pp higher than a year earlier.
- The value of outstanding mortgage balances with arrears increased by 11.4% from the previous quarter, to £18.8 billion, and was 44.0% higher than a year earlier (Chart 6). The proportion of the total loan balances with arrears, relative to all outstanding mortgage balances, increased on the quarter from 1.02% to 1.14%, the highest since 2017 Q2.
Download the data from the charts below - MLAR statistics: detailed tables (Excel)
Table A: Residential loans to individuals flows and balances
Regulated and non-regulated mortgages* - £ billions - Not seasonally adjusted
|
|
Q4 |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
|---|---|---|---|---|---|---|---|---|
|
|
2021 |
2022 |
|
|
|
2023 |
|
|
|
Business flows |
|
|
|
|
|
|
|
|
|
Gross advances |
70.2 |
76.9 |
78.0 |
85.9 |
81.6 |
58.8 |
52.4 |
62.2 |
|
New commitments |
77.3 |
82.5 |
84.0 |
87.8 |
58.3 |
48.9 |
61.7 |
51.5 |
|
Residential loan amounts outstanding |
|
|
|
|
|
|
|
|
|
Total Regulated and Non-regulated |
1,613.5 |
1,630.8 |
1,648.8 |
1,667.1 |
1,675.8 |
1,675.4 |
1,655.5 |
1,654.3 |
*This data covers regulated mortgage lending, and non-regulated mortgage lending by firms which undertake regulated mortgage lending or administration of regulated mortgages.
Chart
Data table
The value of gross mortgage advances increased by 18.6% (£9.8 billion) from the previous quarter to £62.2 billion, the first increase since 2022 Q3, but remained 27.6% lower than a year earlier (Table A and Chart 1).
The value of new mortgage commitments (lending agreed to be advanced in the coming months) decreased by 16.5% from the previous quarter to £51.5 billion, and was 41.4% lower than a year earlier (Table A and Chart 1).
Chart
Data table
The share of gross mortgage advances with interest rates less than 2% above Bank Rate decreased by 0.1 percentage points (pp) from the previous quarter to 96.1%, decreasing for the first time since 2021 Q2 (before the increases in Bank Rate), but remained 3.1pp higher than a year ago (Chart 2).
The share of advances with interest rates between 2% and 3% above Bank Rate increased over the quarter to 1.9% from 1.7%, while the share of advances with interest rates 3% or more above Bank Rate decreased by 0.1pp from the previous quarter to 2.0%.
Chart
Data table
The share of gross mortgage advances with loan-to-value (LTV) ratios exceeding 90% increased by 0.4pp from the previous quarter to 4.8%, but remained 0.2pp lower than a year ago (Chart 3).
Within this, the share of mortgages advanced with LTVs over 95% has stayed consistent from the previous quarter at 0.2%. This was the same as a year earlier.
The share of mortgages advanced in 2023 Q3 with LTV ratios exceeding 75% increased by 2.2pp on the quarter to 38.7%. This is 0.3pp higher than a year earlier.
Chart
Data table
The proportion of lending to borrowers with a high loan-to-income (LTI) ratio increased by 3.9pp from the previous quarter to 49.3%, but remained 2.1pp lower than a year earlier (Chart 4). Borrowers with high LTI are defined here as:
- Borrowers with single income who had a LTI ratio of 4 or above. This decreased by 0.1pp from the previous quarter to 8.0% of gross mortgage lending, the lowest observed since 2009 Q1.
- Borrowers with a joint income who had a LTI ratio of 3 or above. This increased by 3.9pp from the previous quarter to 41.3% of gross mortgage lending, the highest observed since reporting began in 2007.
Chart
Data table
The share of gross mortgage advances for buy-to-let purposes decreased by 0.7pp from the previous quarter to 7.5%, the lowest since 2010 Q3, and 5.0pp lower than a year earlier (Chart 5). The share of advances to owner occupiers was 92.5%.
Of the 92.5% of advances for owner occupiers, the share of gross advances for remortgages decreased by 2.7pp from the previous quarter to 29.4%, but remained 4.4pp higher than a year earlier. The share for house purchase increased by 3.5pp from the previous quarter to 57.4%, and was 1.3pp higher than a year earlier. Further advances and other mortgages (including lifetime mortgages) accounted for 5.7% of gross advances in total.
Of the 57.4% of advances for house purchases by owner occupiers, lending to first-time buyers increased by 1.2pp from the previous quarter to 25.8% of gross advances, the highest since reporting began in 2007, and 2.5pp higher than a year earlier. The share advanced to home movers increased by 2.3pp from the previous quarter to 31.7%, and was 1.2pp lower than a year earlier.
Chart
Data table
New arrears cases decreased by 0.3pp from the previous quarter, to 15.8% of the total outstanding mortgage balances with arrears (defined as the borrower failing to make contractual payments equivalent to at least 1.5% of the outstanding mortgage balance or where the property is in possession), but remained 5.1pp higher than a year earlier.
The value of outstanding mortgage balances with arrears increased by 11.4% from the previous quarter to £18.8 billion. This was 44.0% higher than a year earlier (Chart 6).
The proportion of the total loan balances with arrears, relative to all outstanding mortgage balances, increased on the quarter from 1.02% to 1.14%. This is the highest since 2017 Q2.
Copyright
The data on this page is available under the terms of the Open Government Licence.