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 mortgages loans was £1,513.3 billion at the end of 2020 Q2, 3.2% higher than a year earlier (Table A).
- The value of gross mortgage advances in 2020 Q2 was £44.1 billion, 33.3% lower than in 2019 Q2 (Table A and Chart 1).
- The value of new mortgage commitments (lending agreed to be advanced in the coming months) was 53.2% lower than a year earlier, at £34.3 billion (Table A and Chart 1).
- The share of gross advances with interest rates less than 2% above Bank Rate was 73.3% in 2020 Q2, 10.5 percentage points (pp) lower than a year ago. The decrease was driven by the 65 basis point (bp) cut in Bank Rate in March rather than any significant change in mortgage interest rates (Chart 2). See the Bank’s data on Effective Interest Rates[1].
- The share of mortgages advanced in 2020 Q2 with loan to value (LTV) ratios exceeding 90% was 4.9%, 0.6pp lower than a year earlier (Chart 3).
- The share of gross mortgage lending for buy-to-let purposes (covering house purchase, remortgage and further advance) was 14.4%, an increase of 1.2pp from 2019 Q2 (Chart 5).
- The value of outstanding balances with some arrears increased by 2.8% over the quarter to £14.1 billion, and now accounts for 0.93% of outstanding mortgage balances (Chart 6).
Download the data from the charts below - MLAR statistics: detailed tables[2] (Excel)
Chart tips: hover over data series to view the data values and filter the data categories by clicking on the legend.
Table A: Residential loans to individuals flows and balances
Regulated and non-regulated mortgages* - £ billions - Not seasonally adjusted
|
|
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
|---|---|---|---|---|---|---|
|
|
2019 |
|
|
|
2020 |
|
|
Business flows |
|
|
|
|
|
|
|
Gross advances |
63.4 |
66.1 |
73.3 |
73.5 |
65.8 |
44.1 |
|
New commitments |
63.7 |
73.4 |
73.8 |
70.6 |
67.3 |
34.3 |
|
|
|
|
|
|
|
|
|
Residential loan amounts outstanding |
|
|
|
|
|
|
|
Total Regulated and Non-regulated |
1,451.8 |
1,466.3 |
1,485.4 |
1,498.8 |
1,509.7 |
1,513.3 |
*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 was £44.1 billion in 2020 Q2, 33.3% lower than in 2019 Q2, and the lowest level since 2013 Q2. (Table A and Chart 1).
- The value of new mortgage commitments (lending agreed to be advanced in the coming months) was 53.2% lower than a year earlier, at £34.3 billion and the lowest level since 2010 Q1.
Chart
Data table
- The distribution of interest rates relative to Bank Rate for gross mortgage advances remained broadly unchanged during Q2 following the significant changes in the distribution in Q1 due to the 65bp reduction in Bank Rate in March (Chart 2).
- The share of advances with interest rates less than 2% above Bank Rate was 73.3%.
- The share of advances with interest rates 2% or more, but less than 3%, above Bank Rate was broadly unchanged at 19.8%, and the share of advances with interest rates 3% or more above Bank Rate fell by 1 percentage point to 6.9%.
Chart
Data table
- The share of mortgages advanced in Q2 with loan to value (LTV) ratios exceeding 75% fell on the quarter to 36.5%, which is 3.2pp lower than a year earlier (Chart 3).
- The share of advances with LTV ratios exceeding 90% also decreased on the quarter, by 0.4pp, to 4.9%.
- The share of mortgages advanced with LTVs over 95% was 0.3%, broadly unchanged over recent quarters.
Chart
Data table
The proportion of lending to borrowers with a high loan to income (LTI) ratio fell by 0.6pp on the quarter to 43.1% (Chart 4). Borrowers with high LTI are defined here as:
- Borrowers with single income who had a LTI ratio of 4 or above. These loans accounted for 10.3% of gross mortgage lending in Q2 2020, 0.3pp less than in the previous quarter.
- Borrowers with a joint income who had a LTI of 3 or above. These loans accounted for 32.8% of gross mortgage lending in Q2 2020, a 0.3pp decrease compared to the previous quarter.
Chart
Data table
- The share of gross mortgage advances for buy-to-let purposes (covering house purchase, remortgage and further advance) was 14.4% in 2020 Q2 (Chart 5), an increase of 1.2pp from 2019 Q2. The share of advances to owner occupiers was 85.6%.
- Of the 85.6% of advances for owner occupiers, the share for remortgages was 37.7%, an increase of 8.2pp since 2019 Q2. The share for house purchase was 41.6%, a decline of 8.9pp from 2019 Q2. Further advances and other mortgages (including lifetime mortgages) accounted for 6.3% of gross advances combined.
- Of the 41.6% of advances for house purchases by owner occupiers, lending to first-time buyers was 3.1pp lower than in 2019 Q2, at 18.2% of gross advances. The share advanced to home movers was at its lowest share since 2009 Q1 with a 5.8pp decrease from a year earlier, to 23.4%.
Chart
Data table
- Covid related mortgage payment deferrals are not considered formal arrears.
- The value of outstanding 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) increased by 2.8% on the quarter, to £14.1 billion (Chart 6).
- The proportion of total loan balances with arrears increased to 0.93%.