Source: https://www.fca.org.uk/data/mortgage-lending-statistics/commentary-mortgage-lending-statistics-march-2020
Timestamp: 2020-05-28 12:19:47
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Commentary on Mortgage lending statistics - March 2020 | FCA
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Data First published: 10/03/2020 Last updated: 10/03/2020
The outstanding value of all residential mortgages loans was £1,499 billion at end-2019 Q4, 3.8% higher than a year earlier (Table A).
The value of gross mortgage advances was £73.4 billion, broadly unchanged in comparison to 2018 Q4 (Table A and Chart 1).
The value of new mortgage commitments (lending agreed to be advanced in the coming months) was 4.0% higher than a year earlier, at £70.6 billion (Table A and Chart 1).
The share of gross advances with interest rates less than 2% above Bank Rate was 85.3%, a 1.4 percentage point (pp) increase in comparison to a year ago. This is the highest share since 2008 Q3. (Chart 2).
The share of mortgages advanced in 2019 Q4 with loan to value (LTV) ratios exceeding 90% reached 5.7%, 1.4pp higher than a year earlier (Chart 3).
The share of gross mortgage lending for buy-to-let purposes (covering house purchase, remortgage and further advance) was 12.4%, consistent with 2018 Q4 (Chart 5).
The value of outstanding balances with some arrears fell by 2.1% over the quarter to £13.4 billion, and now accounts for 0.89% of outstanding mortgage balances (Chart 6).
Regulated and non-regulated mortgages* - £ billions - Not seasonally adjusted
*This data covers regulated mortgage lending, and non-regulated mortgage lending by firms which undertake regulated mortgage lending or administration of regulated mortgages.
The value of gross mortgage advances was £73.4 billion in 2019 Q4, broadly unchanged in comparison to 2018 Q4 (Table A and Chart 1).
The value of new mortgage commitments (lending agreed to be advanced in the coming months) was 4.0% higher than a year earlier, at £70.6 billion.
The distribution of interest rates relative to Bank Rate for gross mortgage advances has remained broadly unchanged since 2018 Q4 (Chart 2).
The share of mortgages advanced with interest rates 3% or more above Bank Rate has decreased further to 5.0%, and continues to be at its lowest since 2008 Q3.
The share of advances with interest rates over 2%, but less than 3%, above Bank Rate has decreased to 9.7%, and the share of advances with interest rates less than 2% above Bank Rate increased by 1.2 pp since the previous quarter, to 85.3%.
The share of mortgages advanced in Q4 with loan to value ratios (LTV) ratios exceeding 75% decreased marginally on the quarter to 40.5%, but remains 2.8pp higher than a year earlier (Chart 3).
The share of gross mortgage lending in Q4 with LTV ratios exceeding 90% also decreased marginally on the quarter, to 5.7%.
The share of mortgages advanced with LTVs over 95% was 0.3%, 0.1pp higher than the same period in the previous year.
The proportion of lending to borrowers with a high loan to income (LTI) ratio fell by 0.6pp on the quarter to 46.6% (Chart 4). Borrowers with high LTI are defined here as:
Borrowers with single income who had a LTI ratio of 4 or above. These loans accounted for 11.3% of gross mortgage lending in Q4 2019, 0.5pp more than in the previous quarter.
Borrowers with a joint income who had a LTI of 3 or above. These loans accounted for 35.3% of gross mortgage lending in Q4 2019, a 1.2pp decrease compared to the previous quarter.
The share of gross mortgage advances for buy-to-let purposes (covering house purchase, remortgage and further advance) was 12.4% in Q4 2019 (Chart 5), which is broadly unchanged from the level seen in 2018 Q4. The share of advances to owner occupiers was 87.6%.
Of the 87.6% of advances for owner occupation, the share for remortgages was 29.2%, a decrease of 1.9pp since 2018 Q4. The share for house purchase was 52.1%, 1.1pp higher than 2018 Q4. Further advances and other mortgages (including lifetime mortgages) accounted for 6.3% of gross advances combined.
Of the 52.1% of advances for house purchases by owner occupiers, lending to first-time buyers was 0.2pp higher than in 2018 Q4, at 21.5% of gross advances. The share advanced to home movers was 1.0pp higher than a year earlier, at 30.7%.
The value of outstanding 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) fell by 2.1% on the quarter, to £13.4 billion (Chart 6).
The proportion of total loan balances with arrears has continued to decline on the quarter, reaching 0.89%. This is lowest value since the series began in Q1 2007.