Mortgage Lenders and Administrators Statistics - 2026 Q2

Key findings

The outstanding value of all residential mortgage loans increased by 0.8% from the previous quarter to £1,760.6 billion, and was 3.1% higher than a year earlier (Table A).1

The value of gross mortgage advances increased by 11.1% from the previous quarter to £77.4 billion, and was 31.7% higher than a year earlier (Table A and Chart 1).

The value of new mortgage commitments increased by 1.4% from the previous quarter to £79.2 billion, and was 1.3% 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 0.2 percentage points (pp) from the previous quarter to 94.5%, the lowest since 2023 Q1, and was 0.6pp lower than a year earlier (Chart 2).

The share of gross mortgage advances with loan-to-value (LTV) ratios exceeding 90% increased by 0.4pp from the previous quarter to 8.4%, the highest share since 2008 Q2, and was 1.4pp higher than a year earlier (Chart 3).

The share of gross mortgage advances for buy-to-let purposes decreased by 0.9pp from the previous quarter to 8.0%, the lowest since 2024 Q3, and was 1.2pp lower than a year earlier (Chart 5).

The share of gross mortgage advances for house purchase for owner occupation decreased by 1.6pp from the previous quarter to 56.1%, but remained 0.1pp higher than a year earlier (Chart 5).

The share of gross advances for remortgages for owner occupation increased by 3.1pp from the previous quarter to 31.2%, the highest since 2024 Q1, and was 2.2pp higher than a year earlier (Chart 5).

The value of outstanding mortgage balances with arrears decreased by 1.9% from the previous quarter to £19.7 billion, the lowest since 2023 Q3, and was 7.3% lower than a year earlier (Chart 6).

The proportion of total mortgage loan balances with arrears, relative to all outstanding mortgage balances, remained unchanged 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 increased by 11.1% from the previous quarter to £77.4 billion, and was 31.7% higher 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 1.4% from the previous quarter to £79.2 billion, and was 1.3% 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 94.5%, the lowest since 2023 Q1, and was 0.6pp 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 0.2pp from the previous quarter to 3.1%, the highest since 2023 Q1, and was 0.3pp 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%, but remained 0.3pp higher than a year earlier.6

The share of gross mortgage advances with LTV ratios exceeding 90% increased by 0.4pp from the previous quarter to 8.4%, the highest share since 2008 Q2, and was 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%, but remained 0.2pp higher than a year earlier.8

The share of gross mortgage advances with LTV ratios exceeding 75% increased by 1.5pp from the previous quarter to 47.5%, the highest share since 2007 Q4, and was 4.2pp higher than a year earlier.9

The proportion of lending to borrowers with a high loan-to-income (LTI) ratio increased by 0.9pp from the previous quarter to 46.0%, and was 4.6pp higher than 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 decreased by 0.3pp from the previous quarter to 11.8%, but remained 1.8pp higher than a year earlier.11 Borrowers with a joint income and an LTI ratio of 3 or above. This proportion increased by 1.2pp from the previous quarter to 34.2%, and was 2.8pp higher than a year earlier.12

Borrowers with a single income and an LTI ratio of 4 or above. This proportion decreased by 0.3pp from the previous quarter to 11.8%, but remained 1.8pp higher than a year earlier.11

Borrowers with a joint income and an LTI ratio of 3 or above. This proportion increased by 1.2pp from the previous quarter to 34.2%, and was 2.8pp higher than a year earlier.12

The share of gross mortgage advances for buy-to-let purposes (covering house purchase, remortgage and further advance) decreased by 0.9pp from the previous quarter to 8.0%, the lowest since 2024 Q3, and was 1.2pp lower than a year earlier (Chart 5). The share of advances to owner occupiers was 92.0%.13,14

Of the 92.0% of advances for owner occupiers, the share of gross advances for remortgages for owner occupation increased by 3.1pp from the previous quarter to 31.2%, the highest since 2024 Q1, and was 2.2pp higher than a year earlier. The share of gross mortgage advances for house purchase for owner occupation decreased by 1.6pp from the previous quarter to 56.1%, but remained 0.1pp higher than a year earlier. Further advances and advances for other mortgages (including lifetime mortgages) decreased by 0.6pp from the previous quarter to 4.7%, and was 1.0pp lower than a year earlier.15,16,17

Of the 56.1% of advances for house purchases by owner occupiers, lending to first-time buyers decreased by 0.1pp from the previous quarter to 27.3%, the lowest share since 2024 Q1, and was 0.1pp lower than a year earlier. The share advanced to home movers decreased by 1.5pp from the previous quarter to 28.8%, but remained 0.1pp higher than a year earlier.18,19

The value of outstanding mortgage balances with arrears decreased by 1.9% from the previous quarter to £19.7 billion, the lowest since 2023 Q3, and was 7.3% 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 £19.7 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 3.4% from the previous quarter to £4.2 billion, the lowest since 2023 Q2, and was 12.7% lower than a year earlier.21

The proportion of total mortgage loan balances with arrears, relative to all outstanding mortgage balances, has stayed the same as 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 0.2pp from the previous quarter to 9.1%, but remained 0.3pp higher than a year earlier.23

The number of new possessions in 2026 Q2 decreased by 7.1% from the previous quarter to 2,058, and was 15.6% lower than a year earlier.24

The total stock of possessions decreased by 4.5% from the previous quarter to 8,825, the largest decrease since 2021 Q1, but remained 1.7% higher than a year earlier.25

Footnotes

Note on Chart 4: Gross advances by income multiple: The ‘Other’ category is used when the loan assessment is based, only partly or not at all, on one or more persons’ incomes. Further details can be found in the FCA Handbook.

Queries

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

Next release date: 8 December 2026