The Bank of England and Financial Conduct Authority (FCA) today published the latest Mortgage Lenders and Administrators Statistics for the United Kingdom covering the period Q2 2015.
Key statistics for Q2 2015 are as follows:
The overall value of the residential loan amounts outstanding was £1,272 billion in Q2 2015, an increase of 0.8% compared with Q1 2015 and an increase of 1.8% over the past four quarters.
Gross advances of £52.5 billion were recorded in Q2 2015. This was 15.1% higher than Q1 2015 and 1.9% higher compared with Q2 2014.
New commitments increased – from £47.2 billion in Q1 2015 to £59.3 billion in Q2 2015. Moreover, this was an increase of 11.0% compared with Q2 2014.
The proportion of gross advances at fixed rates increased from 77.6% in Q1 2015 to 78.9% in Q2 2015.
The overall average interest rate on gross advances decreased by 16bps, from 2.99% in Q1 2015 to 2.83% in Q2 2015. This is the lowest interest rate on gross advances since the series began in 2007.
The value of residential loans advanced to first time buyers increased over the quarter to £10.8 billion from £8.9 billion. The Q2 2014 outturn by comparison was £11.4 billion.
There was an increase in value terms in buy-to-let lending over the past year – from £7.0 billion advanced in Q2 2014 to £8.3 billion in Q2 2015.
The proportion of gross advances at a loan-to-value (LTV) over 90% increased by 0.2 percentage points over the quarter to 3.5% in Q2 2015.
The proportion of gross advances to borrowers with a single income multiple of more than 4.00x increased by 0.2 percentage points to 9.3% in Q2 2015.
The proportion of gross advances that is a combination of an LTV over 90% and loan-to-income multiple of over 3.5x for single income borrowers (or 2.75x for joint income borrowers) increased over the quarter by 0.2 percentage points to 2.3%.
The number of new arrears cases in Q2 2015 was 20,800. This was 5.5% lower than in Q1 2015 and was the lowest since the series began in 2007.
The performance of loans in arrears – payments received as a percentage of payments due – decreased from 62.0% in Q1 2015 to 61.6% in Q2 2015.
New cases taken into possession totalled 2,674 in Q2 2015, a 15.9% reduction from Q1 2015. The stock of possession cases remaining unsold also decreased to 5,265 in Q2 2015, the lowest since the series began in 2007.