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 was £1,527.3 billion at the end of 2020 Q3, 2.9% higher than a year earlier (Table A).
- The value of gross mortgage advances in 2020 Q3 was £62.5 billion, 14.7% lower than in 2019 Q3 (Table A and Chart 1).
- The value of new mortgage commitments (lending agreed to be advanced in the coming months) was 6.8% higher than a year earlier, at £78.9 billion and the highest level since 2007 Q3 (Table A and Chart 1).
- The share of gross advances with interest rates less than 2% above Bank Rate was 74.2% in 2020 Q3, 10.0 percentage points (pp) lower than a year ago (Chart 2). See the Bank’s data on Effective Interest Rates[1].
- The share of mortgages advanced in 2020 Q3 with loan to value (LTV) ratios exceeding 90% was 3.5%, 2.4pp lower than a year earlier (Chart 3).
- The share of gross advances for remortgages for owner occupation was 25%, a decrease of 3pp since 2019 Q3. The share for house purchase for owner occupation was 55.8%, up 2.6pp from 2019 Q3. (Chart 5).
- The value of outstanding balances with some arrears fell by 1.2% over the quarter to £13.8 billion, and now accounts for 0.90% 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
|
|
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
|---|---|---|---|---|---|---|
|
|
2019 |
|
|
2020 |
|
|
|
Business flows |
|
|
|
|
|
|
|
Gross advances |
66.1 |
73.3 |
73.5 |
65.8 |
44.2 |
62.5 |
|
New commitments |
73.4 |
73.8 |
70.6 |
67.3 |
34.4 |
78.9 |
|
|
|
|
|
|
|
|
|
Residential loan amounts outstanding |
|
|
|
|
|
|
|
Total Regulated and Non-regulated |
1,465.6 |
1,484.6 |
1,498.0 |
1,508.8 |
1,515.8 |
1,527.3 |
*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 £62.5 billion in 2020 Q3, 14.7% lower than in 2019 Q3 (Table A and Chart 1).
- The value of new mortgage commitments (lending agreed to be advanced in the coming months) was 6.8% higher than a year earlier, at £78.9 billion and the highest level since 2007 Q3.
Chart
Data table
- The distribution of interest rates relative to Bank Rate remained broadly unchanged over the quarter for gross mortgage advances with rates below 3% in Q3. (Chart 2).
- The share of advances with interest rates less than 2% above Bank Rate was 74.2%, 10.0pp lower than a year ago.
- The share of advances with interest rates between 2% and 3% above Bank Rate was broadly unchanged over the quarter at 20.3%, and the share of advances with interest rates 3% or more above Bank Rate fell by 1.4pp to 5.6% from 2020 Q2.
Chart
Data table
- The share of mortgages advanced in Q3 with loan to value (LTV) ratios exceeding 75% increased on the quarter to 39.6%, but is still 1.5pp lower than a year earlier (Chart 3).
- The share of advances with LTV ratios exceeding 90% decreased on the quarter, by 1.3pp, to 3.5%. This is 2.4pp lower than a year earlier.
- 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 increased by 5.1pp on the quarter to 48.2%, the highest since 2007 Q1 when the series began (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 11.3% of gross mortgage lending in Q3 2020, 1.0pp more than in the previous quarter.
- Borrowers with a joint income who had a LTI of 3 or above. These loans accounted for 36.9% of gross mortgage lending in Q3 2020, a 4.2pp increase 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 12.5% in 2020 Q3, an increase of 0.2pp from 2019 Q3 (Chart 5). The share of advances to owner occupiers was 87.5%.
- Of the 87.5% of advances for owner occupiers, the share for remortgages was 25%, a decrease of 3pp since 2019 Q3. The share for house purchase was 55.8%, up 2.6pp from 2019 Q3. Further advances and other mortgages (including lifetime mortgages) accounted for 6.7% of gross advances combined.
- Of the 55.8% of advances for house purchases by owner occupiers, lending to first-time buyers was 1.0pp higher than in 2019 Q3, at 22.9% of gross advances. The share advanced to home movers increased by 1.6pp on a year earlier, to 32.9%.
Chart
Data table
- 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) decreased by 1.2% on the quarter, to £13.8 billion (Chart 6).
- The proportion of total loan balances with arrears was broadly unchanged at 0.90%.
Copyright
The data on this page is available under the terms of the Open Government Licence[3].