Mortgage Lenders and Administrators Statistics - 2023 Q3

• The share of gross mortgage advances with interest rates less than 2% above Bank Rate decreased by 0.1 percentage points (pp) from the previous quarter to 96.1%, decreasing for the first time since 2021 Q2 (before the increases in Bank Rate), but remained 3.1pp higher than a year ago (Chart 2).⁴
• The share of advances with interest rates between 2% and 3% above Bank Rate increased over the quarter to 1.9% from 1.7%, while the share of advances with interest rates 3% or more above Bank Rate decreased by 0.1pp from the previous quarter to 2.0%.^5,6

• The share of gross mortgage advances with loan-to-value (LTV) ratios exceeding 90% increased by 0.4pp from the previous quarter to 4.8%, but remained 0.2pp lower than a year ago (Chart 3).⁷
• Within this, the share of mortgages advanced with LTVs over 95% has stayed consistent from the previous quarter at 0.2%. This was the same as a year earlier.⁸
• The share of mortgages advanced in 2023 Q3 with LTV ratios exceeding 75% increased by 2.2pp on the quarter to 38.7%. This is 0.3pp higher than a year earlier.⁹

• The proportion of lending to borrowers with a high loan-to-income (LTI) ratio increased by 3.9pp from the previous quarter to 49.3%, but remained 2.1pp lower than a year earlier (Chart 4).¹⁰ Borrowers with high LTI are defined here as:
  1. Borrowers with single income who had a LTI ratio of 4 or above. This decreased by 0.1pp from the previous quarter to 8.0% of gross mortgage lending, the lowest observed since 2009 Q1.¹¹
  2. Borrowers with a joint income who had a LTI ratio of 3 or above. This increased by 3.9pp from the previous quarter to 41.3% of gross mortgage lending, the highest observed since reporting began in 2007.¹²

• New arrears cases decreased by 0.3pp from the previous quarter, to 15.8% of the total outstanding mortgage 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), but remained 5.1pp higher than a year earlier.²⁰
• The value of outstanding mortgage balances with arrears increased by 11.4% from the previous quarter to £18.8 billion. This was 44.0% higher than a year earlier (Chart 6).²¹
• The proportion of the total loan balances with arrears, relative to all outstanding mortgage balances, increased on the quarter from 1.02% to 1.14%.²² This is the highest since 2017 Q2.

Appendix

¹ Table 1.11 sub table A row 9

² Table 1.21 sub table C row 1

³ Table 1.21 sub table C row 3

⁴ Table 1.22 sub table C row 3 (less than 2% above)

⁵ Table 1.22 sub table C row 4 (2.00% to 2.99% above)

⁶ Table 1.22 sub table C row 5 + row 6 (3% or more above)

⁷ Table 1.31 sub table C row 19 + row 20

⁸ Table 1.31 sub table C row 20

⁹ Calculated as 100% of all mortgages less those <= 75% LTV (Table 1.31 sub table C row 21 - row 17)

¹⁰ Table 1.31 sub table C row 5 + row 13

¹¹ Table 1.31 sub table C row 5

¹² Table 1.31 sub table C row 13

¹³ Table 1.33 sub table C row 4 (buy-to-let)

¹⁴ Calculated as 100% of all mortgages less those for buy-to-let purposes (100% - Table 1.33 sub table C row 4) (owner-occupation)

¹⁵ Table 1.33 sub table C row 6 (remortgage)

¹⁶ Table 1.33 sub table C row 2 + row 3 (house purchase owner occupation)

¹⁷ Table 1.33 sub table C row 5 + row 9 (further advance and other)

¹⁸ Table 1.33 sub table C row 2 (first-time buyers)

¹⁹ Table 1.33 sub table C row 3 (home movers)

²⁰ Table 1.7 sub table C row 4

²¹ Table 1.7 sub table C row 10

²² Table 1.7 sub table C row 11