Mortgage Lenders and Administrators Statistics: 2023 Q1
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).1
- 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).
- 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).
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 |
||||||
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 |
Amounts outstanding |
1,587.6 |
1,601.9 |
1,613.5 |
1,630.8 |
1,648.8 |
1,667.1 |
1,675.8 |
1,675.4 |
Footnotes
- *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 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).2
- 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).3