Mortgage Lenders and Administrators Statistics - 2025 Q4

The Mortgage Lenders and Administrators Return (MLAR) is a quarterly statistical release aggregated from data on mortgage lending activities provided by around 340 regulated mortgage lenders and administrators.
Published on 10 March 2026

Key findings

  • The outstanding value of all residential mortgage loans increased by 0.8% from the previous quarter to £1,734.4 billion, the highest stock of outstanding mortgage loans since reporting began in 2007, and was 3.0% higher than a year earlier (Table A).1
  • The value of gross mortgage advances decreased by 1.3% from the previous quarter to £79.4 billion, but remained 15.4% higher than a year earlier (Table A and Chart 1).
  • The value of new mortgage commitments decreased by 11.9% from the previous quarter to £69.9 billion, the largest decrease since 2023 Q3, but remained 0.8% higher than a year earlier (Table A and Chart 1).
  • The share of gross mortgage advances with loan-to-value (LTV) ratios exceeding 90% increased by 0.9pp from the previous quarter to 8.3%, the highest share since 2008 Q2, and was 2.1pp higher than a year earlier (Chart 3).
  • The proportion of lending to borrowers with a high loan-to-income (LTI) ratio increased by 1.7 percentage points (pp) from the previous quarter to 46.5%, the highest since 2022 Q4, and was 0.6pp higher than a year earlier (Chart 4).
  • The share of gross mortgage advances for buy-to-let purposes increased by 0.2pp from the previous quarter to 8.4%, and was 0.1pp higher than a year earlier (Chart 5).
  • The share of gross mortgage advances for house purchase for owner occupation increased by 3.0pp from the previous quarter to 61.6%, the largest increase in share since 2024 Q3, but remained 2.0pp lower than a year earlier (Chart 5).
  • The share of gross advances for remortgages for owner occupation decreased by 3.1pp from the previous quarter to 25.4%, the largest decrease since 2024 Q3, but remained 1.9pp higher than a year earlier (Chart 5).
  • The value of outstanding mortgage balances with arrears decreased by 0.9% from the previous quarter to £20.4 billion, the lowest since 2023 Q3, and was 5.3% 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 the same as the previous quarter at 1.2%, and was 0.1pp lower than a year earlier (Chart 6).
  • The proportion of total outstanding balances with arrears that are new arrears cases increased by 0.6pp from the previous quarter to 9.4%, the first increase since 2023 Q2. This was the same as a year earlier.

Table A: Residential loans to individuals, flows and balances

Regulated and non-regulated mortgages *

£ billions

Not seasonally adjusted

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2024

2025

Flows

Gross advances

51.6

60.2

65.5

68.8

77.6

58.8

80.4

79.4

New commitments

60.2

66.9

66.1

69.4

68.3

78.2

79.4

69.9

Amounts outstanding

1,670.0

1,676.3

1,674.7

1,683.4

1,702.4

1,707.1

1,721.3

1,734.4

*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 1.3% from the previous quarter to £79.4 billion, but remained 15.4% 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) decreased by 11.9% from the previous quarter to £69.9 billion, the largest decrease since 2023 Q3, but remained 0.8% higher than a year earlier (Table A and Chart 1).3

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  • The share of gross mortgage advances with interest rates less than 2% above Bank Rate (including at or below Bank Rate) decreased by 0.6pp from the previous quarter to 94.9%, the lowest since 2023 Q1, and was 1.7pp 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 2.8%, and was 0.9pp higher than a year earlier.5
  • The share of advances with interest rates 3% or more above Bank Rate increased by 0.5pp from the previous quarter to 2.3%, the highest since 2023 Q4, and was 0.8pp higher than a year earlier.6
  • These movements were mostly driven by the 25 basis point decrease in Bank Rate across the quarter, rather than any significant change in mortgage interest rates.7

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  • The share of gross mortgage advances with LTV ratios exceeding 90% increased by 0.9pp from the previous quarter to 8.3%, the highest share since 2008 Q2, and was 2.1pp higher than a year earlier (Chart 3).8
  • Within this, the share of mortgages advanced with LTVs over 95% increased by 0.1pp from the previous quarter to 0.5%, and was 0.3pp higher than a year earlier.9
  • The share of gross mortgage advances with LTV ratios exceeding 75% increased by 2.2pp from the previous quarter to 46.9%, the highest share since 2007 Q4, and was 2.9pp higher than a year earlier.10

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  • The proportion of lending to borrowers with a high LTI ratio increased by 1.7pp from the previous quarter to 46.5%, the highest since 2022 Q4, and was 0.6pp higher than a year earlier (Chart 4).11 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 1.0pp from the previous quarter to 11.9%, the highest since 2021 Q2, and was 1.8pp higher than a year earlier.12
    • Borrowers with a joint income and an LTI ratio of 3 or above. This proportion increased by 0.8pp from the previous quarter to 34.6%, but remained 1.2pp lower than a year earlier.13

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  • The share of gross mortgage advances for buy-to-let purposes (covering house purchase, remortgage and further advance) increased by 0.2pp from the previous quarter to 8.4%, and was 0.1pp higher than a year earlier (Chart 5). The share of advances to owner occupiers was 91.6%.14,15
  • Of the 91.6% of advances for owner occupiers, the share of gross advances for remortgages for owner occupation decreased by 3.1pp from the previous quarter to 25.4%, the largest decrease since 2024 Q3, but remained 1.9pp higher than a year earlier. The share of gross mortgage advances for house purchase for owner occupation increased by 3.0pp from the previous quarter to 61.6%, the largest increase in share since 2024 Q3, but remained 2.0pp lower than a year earlier. Further advances and advances for other mortgages (including lifetime mortgages) decreased by 0.1pp from the previous quarter to 4.6%. This was the same as a year earlier.16,17,18
  • Of the 61.6% of advances for house purchases by owner occupiers, lending to first time buyers increased by 1.3pp from the previous quarter to 28.6%, but remained 0.9pp lower than a year earlier. The share advanced to home movers increased by 1.8pp from the previous quarter to 33.0%, but remained 1.1pp lower than a year earlier.19,20

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  • The value of outstanding mortgage balances with arrears decreased by 0.9% from the previous quarter to £20.4 billion, the lowest since 2023 Q3, and was 5.3% lower than a year earlier (Chart 6).21 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 £20.4 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 1.9% from the previous quarter to £4.6 billion, the lowest since 2023 Q3, and was 6.4% lower than a year earlier (Chart 6).22
  • The proportion of the total mortgage loan balances with arrears, relative to all outstanding mortgage balances, has stayed the same as the previous quarter at 1.2%, and was 0.1pp lower than a year earlier. (Chart 6).23
  • The proportion of total outstanding balances with arrears that are new arrears cases increased by 0.6pp from the previous quarter to 9.4%, the largest increase since 2023 Q1. This was the same as a year earlier.24
  • The number of new possessions in 2025 Q4 decreased by 12.1% from the previous quarter to 2,182, the largest decrease since 2022 Q4, but remained 6.2% higher than a year earlier.25
  • The total stock of possessions increased by 2.1% from the previous quarter to 9,319, and was 30.8% higher than a year earlier.26

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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.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 View the Bank of England’s Effective Interest Rates data
8 Table 1.31 sub table C row 19 + row 20
9 Table 1.31 sub table C row 20
10 Calculated as 100% of all mortgages less those <= 75% LTV (Table 1.31 sub table C row 21 - row 17)
11 Table 1.31 sub table C row 5 + row 13
12 Table 1.31 sub table C row 5
13 Table 1.31 sub table C row 13
14 Table 1.33 sub table C row 4 (buy-to-let)
15 Calculated as 100% of all mortgages less those for buy-to-let purposes (100% - Table 1.33 sub table C row 4) (owner-occupation)
16 Table 1.33 sub table C row 6 (remortgage)
17 Table 1.33 sub table C row 2 + row 3 (house purchase owner occupation)
18 Table 1.33 sub table C row 5 + row 9 (further advance and other)
19 Table 1.33 sub table C row 2 (first-time buyers)
20 Table 1.33 sub table C row 3 (home movers)
21 Table 1.7 sub table C row 10
22 Table 1.7 sub table B row 10
23 Table 1.7 sub table C row 11
24 Table 1.7 sub table C row 4
25 Table 1.7 sub table C row 29
26 Table 1.7 sub table C row 31

Queries

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

Next release date: 9 June 2026

More information

Long run versions of the summary and detailed tables are now available in Excel format, for data going back to Q1 2007. These have been sourced from data published by the FSA on their archive pages prior to Q1 2013 and data published by the Bank of England from Q1 2013.

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