The FCA has published mortgage lending statistics for Q2 2025. The data comes from firms carrying out mortgage lending and mortgage administration, who are required to submit the Mortgage Lending and Administration Return (MLAR) quarterly.
Key findings from the latest data are:
- The outstanding value of all residential mortgage loans increased by 0.3% from the previous quarter to £1,703.6 bn, and 2.6% higher than a year earlier.
- The value of gross mortgage advances decreased by 24.2% from the previous quarter to £58.8 bn. This was the lowest level of new advances since Q1 2024, and 2.4% lower than a year earlier.
- The value of new mortgage commitments (lending agreed to be advanced in the coming months) increased by 14.6% from the previous quarter to £78.2 bn, the highest since Q3 2022, and was 16.8% higher than a year earlier.
- The share of gross mortgage advances with loan-to-value (LTV) ratios exceeding 90% increased by 0.4pp from the previous quarter to 7.1%. This was the highest share since Q2 2008, and 1.1pp higher than a year earlier.
- The proportion of lending to borrowers with a high loan to income (LTI) ratio decreased by 3.7pp from the previous quarter to 41.5%. This was the largest decrease since Q1 2023, and 1.0pp lower than a year earlier.
- The share of gross mortgage advances for house purchase for owner occupation decreased by 10.3pp from the previous quarter to 56%. This was the lowest share since Q1 2024, and 1.4pp lower than a year earlier.
- The share of gross advances for remortgages for owner occupation increased by 7.7pp from the previous quarter to 29%. This was the highest share since Q1 2024 and 0.4pp higher than a year earlier.
- New arrears cases (as a proportion of total outstanding balances with arrears) decreased by 0.4pp from the previous quarter to 8.8%. This was the lowest since Q1 2022 and was 2.2pp lower than a year earlier.
- The value of outstanding mortgage balances with arrears decreased by 1% from the previous quarter to £20.9 billion. This was the lowest since Q4 2023 and was 4.6% lower than a year earlier.