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 £1,675.4 billion at the end of 2023 Q1, 2.7% higher than a year earlier, but a decrease on the previous quarter for the first time since 2017 Q2 (Table A).
- The value of gross mortgage advances in 2023 Q1 was £58.8 billion, which was £22.9 billion lower than the previous quarter, and 23.6% lower than in 2022 Q1. This was the lowest observed since 2020 Q2 (Table A and Chart 1).
- The value of new mortgage commitments (lending agreed to be advanced in the coming months) in 2023 Q1 was 16.1% less than the previous quarter and 40.7% less than a year earlier, at £48.9 billion. This was also the lowest observed since 2020 Q2 (Table A and Chart 1).
- The share of gross mortgage advances with interest rates less than 2% above Bank Rate was 93.9% in 2023 Q1, 7.7 percentage points (pp) higher than a year ago and the highest seen since 2008 Q2 (Chart 2). See the Bank of England’s Effective Interest Rates data[1].
- The share of gross mortgage advances in 2023 Q1 with loan to value (LTV) ratios exceeding 90% was 4.0%, broadly unchanged from a year earlier but a 1.1pp decrease compared to the previous quarter (Chart 3).
- The proportion of lending to borrowers with a high loan to income (LTI) ratio decreased by 5.6pp on the quarter to 43.7% in 2023 Q1, the lowest seen since 2020 Q2 (Chart 4).
- The share for house purchase for owner occupation was 50.1%, down 0.6pp from 2022 Q1 and the lowest since 2020 Q2. The share of gross advances for remortgages for owner occupation was 34.8%, an increase of 5.8pp since 2022 Q1, and the highest observed since 2020 Q2. The share for buy-to-let purposes was 9.8%, the lowest observed since 2011 Q4 (Chart 5).
- The value of outstanding balances with arrears increased by 9.5% over the quarter and 12.5% over the year, to £14.9 billion in 2023 Q1, and now accounts for 0.89% of outstanding mortgage balances (Chart 6).
Download the data from the charts below - MLAR statistics: detailed tables[2] (Excel)
Table A: Residential loans to individuals flows and balances
Regulated and non-regulated mortgages* - £ billions - Not seasonally adjusted
|
|
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
|---|---|---|---|---|---|---|---|---|
|
|
2021 |
|
|
2022 |
|
|
|
2023 |
|
Business flows |
|
|
|
|
|
|
|
|
|
Gross advances |
89.1 |
73.4 |
70.2 |
76.9 |
78.0 |
85.9 |
81.6 |
58.8 |
|
New commitments |
86.1 |
78.9 |
77.3 |
82.5 |
84.0 |
87.8 |
58.3 |
48.9 |
|
Residential loan amounts outstanding |
|
|
|
|
|
|
|
|
|
Total Regulated and Non-regulated |
1,587.6 |
1,601.9 |
1,613.5 |
1,630.8 |
1,648.8 |
1,667.1 |
1,675.8 |
1,675.4 |
*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 in 2023 Q1 was £58.8 billion, which was £22.9 billion lower than the previous quarter, and 23.6% lower than in 2022 Q1. This was the lowest observed since 2020 Q2.
The value of new mortgage commitments (lending agreed to be advanced in the coming months) in 2023 Q1 was 16.1% less than the previous quarter and 40.7% less than a year earlier, at £48.9 billion. This was also the lowest observed since 2020 Q2.
Chart
Data table
The share of gross mortgage advances with interest rates less than 2% above Bank Rate was 93.9% in 2023 Q1, 0.2pp higher than last quarter. This was 7.7pp higher than a year ago and the highest seen since 2008 Q2 (Chart 2).
The share of advances with interest rates between 2% and 3% above Bank Rate decreased over the quarter to 3.4% from 3.8%, while the share of advances with interest rates 3% or more above Bank Rate increased by 0.2pp to 2.7% from 2022 Q4.
Chart
Data table
The share of advances with LTV ratios exceeding 90% decreased on the quarter, by 1.1pp, to 4.0% in 2023 Q1. This was approximately the same as a year earlier (Chart 3). Within this, the share of mortgages advanced with LTVs over 95% was 0.2%, broadly unchanged compared to the previous quarter.
The share of mortgages advanced in 2023 Q1 with LTV ratios exceeding 75% decreased by 4.5pp on the quarter to 32.5%. This is 3.0pp lower than a year earlier and the lowest since 2016 Q1.
Chart
Data table
The proportion of lending to borrowers with a high loan to income (LTI) ratio decreased by 5.6pp on the quarter to 43.7% in 2023 Q1, 6.0pp lower than a year earlier, and lowest observed since 2020 Q2 (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 9.1% of gross mortgage lending in 2023 Q1, a 1.5pp decrease compared to the previous quarter.
- Borrowers with a joint income who had a LTI of 3 or above. These loans accounted for 34.6% of gross mortgage lending in 2023 Q1, a 4.2pp 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 9.8% in 2023 Q1, a fall of 3.6pp from 2022 Q1 and the lowest observed since 2011 Q4 (Chart 5). The share of advances to owner occupiers was 90.2%.
Of the 90.2% of advances for owner occupiers, the share for remortgages was 34.8%, an increase of 5.8pp since 2022 Q1, and the highest observed since 2020 Q2. The share for house purchase was the lowest observed since 2020 Q2, at 50.1%, down 5.2pp on the previous quarter and down 0.6pp from 2022 Q1. Further advances and other mortgages (including lifetime mortgages) accounted for 5.3% of gross advances in total, the lowest observed since recording began.
Of the 50.1% of advances for house purchases by owner occupiers, lending to first-time buyers was 1.3pp higher than in 2022 Q1, at 22.7% of gross advances, but was 1.5pp lower than 2022 Q4. The share advanced to home movers decreased by 1.9pp on a year earlier, to 27.4%, and was 3.8pp lower than 2022 Q4. This was also the lowest observed since 2020 Q2.
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) increased by 9.5% on the quarter and 12.5% on a year earlier, to £14.9 billion. This was the highest seen since 2021 Q1 (Chart 6).
The proportion of total loan balances with arrears increased on the quarter from 0.81% to 0.89%.
Copyright
The data on this page is available under the terms of the Open Government Licence[3].