Mortgage Lenders and Administrators Statistics - 2026 Q1

Key findings

The outstanding value of all residential mortgage loans increased by 0.7% from the previous quarter to £1,746.1 billion, and was 2.6% higher than a year earlier (Table A).1

The value of gross mortgage advances decreased by 12.3% from the previous quarter to £69.6 billion, and was 10.2% lower than a year earlier (Table A and Chart 1).

The value of new mortgage commitments increased by 11.5% from the previous quarter to £78.0 billion, and was 14.2% higher than a year earlier (Table A and Chart 1).

The share of gross mortgage advances with interest rates less than 2% above Bank Rate decreased by 0.2pp from the previous quarter to 94.7%, the lowest since 2023 Q1, and was 1.9pp lower than a year earlier (Chart 2).

The share of gross mortgage advances with loan-to-value (LTV) ratios exceeding 90% decreased by 0.3 percentage points (pp) from the previous quarter to 8.0%, the first decrease in share since 2024 Q4, but remained 1.4pp higher than a year earlier (Chart 3).

The share of gross mortgage advances for buy-to-let purposes increased by 0.5pp from the previous quarter to 8.9%, and was 0.8pp higher than a year earlier (Chart 5).

The share of gross mortgage advances for house purchase for owner occupation decreased by 3.9pp from the previous quarter to 57.7%, and was 8.6pp lower than a year earlier (Chart 5).

The share of gross advances for remortgages for owner occupation increased by 2.7pp from the previous quarter to 28.1%, and was 6.8pp higher than a year earlier (Chart 5).

The value of outstanding mortgage balances with arrears decreased by 1.7% from the previous quarter to £20.1 billion, the lowest since 2023 Q3, and was 6.3% lower than a year earlier (Chart 6).

The proportion of the total mortgage loan balances with arrears, relative to all outstanding mortgage balances, has stayed broadly consistent from the previous quarter at 1.1%, and was 0.1pp lower than a year earlier (Chart 6).

Table A: Residential loans to individuals, flows and balances

*This data covers regulated mortgage lending, and non-regulated mortgage lending by firms which undertake regulated mortgage lending or administration of regulated mortgages.

Graphical Analysis:

The value of gross mortgage advances decreased by 12.3% from the previous quarter to £69.6 billion, and was 10.2% lower than a year earlier (Table A and Chart 1).2

The value of new mortgage commitments (lending agreed to be advanced in the coming months) increased by 11.5% from the previous quarter to £78.0 billion, and was 14.2% higher than a year earlier.3

The share of gross mortgage advances with interest rates less than 2% above Bank Rate (including at or below Bank Rate) decreased by 0.2pp from the previous quarter to 94.7%, the lowest since 2023 Q1, and was 1.9pp lower than a year earlier (Chart 2).4

The share of advances with interest rates between 2% and up to 3% above Bank Rate increased by 0.1pp from the previous quarter to 3.0%, the highest since 2023 Q1, and was 1.0pp higher than a year earlier.5

The share of advances with interest rates 3% or more above Bank Rate has stayed the same as the previous quarter at 2.4%, and was 0.9pp higher than a year earlier.6

The share of gross mortgage advances with LTV ratios exceeding 90% decreased by 0.3pp from the previous quarter to 8.0%, the first decrease in share since 2024 Q4, but remained 1.4pp higher than a year earlier (Chart 3).7

Within this, the share of mortgages advanced with LTVs over 95% has stayed the same as the previous quarter at 0.5%, and was 0.3pp higher than a year earlier.8

The share of gross mortgage advances with LTV ratios exceeding 75% decreased by 1.0pp from the previous quarter to 45.9%, but remained 0.2pp higher than a year earlier.9

The proportion of lending to borrowers with a high loan-to-income (LTI) ratio decreased by 1.3pp from the previous quarter to 45.1%. This was at similar levels to a year earlier (Chart 4).10 Borrowers with high LTI ratios are defined here as: Borrowers with a single income and an LTI ratio of 4 or above. This proportion increased by 0.3pp from the previous quarter to 12.1%, the highest since 2021 Q2, and was 1.3pp higher than a year earlier.11 Borrowers with a joint income and an LTI ratio of 3 or above. This proportion decreased by 1.6pp from the previous quarter to 33.0%, and was 1.4pp lower than a year earlier.12

Borrowers with a single income and an LTI ratio of 4 or above. This proportion increased by 0.3pp from the previous quarter to 12.1%, the highest since 2021 Q2, and was 1.3pp higher than a year earlier.11

Borrowers with a joint income and an LTI ratio of 3 or above. This proportion decreased by 1.6pp from the previous quarter to 33.0%, and was 1.4pp lower than a year earlier.12

The share of gross mortgage advances for buy-to-let purposes (covering house purchase, remortgage and further advance) increased by 0.5pp from the previous quarter to 8.9%, and was 0.8pp higher than a year earlier (Chart 5). The share of advances to owner occupiers was 91.1%.13,14

Of the 91.1% of advances for owner occupiers, the share of gross advances for remortgages for owner occupation increased by 2.7pp from the previous quarter to 28.1%, and was 6.8pp higher than a year earlier. The share of gross mortgage advances for house purchase for owner occupation decreased by 3.9pp from the previous quarter to 57.7%, and was 8.6pp lower than a year earlier. Further advances and advances for other mortgages (including lifetime mortgages) increased by 0.8pp from the previous quarter to 5.3%, and was 1.0pp higher than a year earlier.15,16,17

Of the 57.7% of advances for house purchases by owner occupiers, lending to first time buyers decreased by 1.2pp from the previous quarter to 27.4%, and was 3.9pp lower than a year earlier. The share advanced to home movers decreased by 2.7pp from the previous quarter to 30.3%, and was 4.6pp lower than a year earlier.18,19

The value of outstanding mortgage balances with arrears decreased by 1.7% from the previous quarter to £20.1 billion, the lowest since 2023 Q3, and was 6.3% lower than a year earlier (Chart 6).20 Arrears are defined as the borrower failing to make contractual payments where the balance owed is equivalent to at least 1.5% of the outstanding mortgage balance or where the property is in possession.

Of the £20.1 billion of outstanding mortgage balances with arrears, the value of non-regulated mortgages (including buy-to-let loans and other residential lending to individuals where the property is not for use by the borrower or qualifying dependents) decreased by 4.1% from the previous quarter to £4.4 billion, the lowest since 2023 Q3, and was 11.9% lower than a year earlier.21

The proportion of the total mortgage loan balances with arrears, relative to all outstanding mortgage balances, has stayed broadly consistent from the previous quarter at 1.1%, and was 0.1pp lower than a year earlier.22

The proportion of total outstanding balances with arrears that are new arrears cases decreased by 0.1pp from the previous quarter to 9.3%, but remained 0.1pp higher than a year earlier.23

The number of new possessions in 2026 Q1 increased by 1.6% from the previous quarter to 2,216, but remained 4.3% lower than a year earlier.24

The total stock of possessions decreased by 0.8% from the previous quarter to 9,247, the first decrease since 2021 Q1, but remained 20.6% higher than a year earlier.25

Queries

If you have any comments or queries about this release please email mlar@bankofengland.co.uk.

Next release date: 8 September 2026