• The share of gross mortgage advances with interest rates less than 2% above Bank Rate increased by 0.9 percentage points (pp) from the previous quarter to 97.0%, and was 0.7pp higher than a year ago (Chart 2).⁴
• The share of advances with interest rates between 2% and 3% above Bank Rate decreased over the quarter to 1.2% from 1.6%, and the share of advances with interest rates 3% or more above Bank Rate decreased by 0.4pp from the previous quarter to 1.8%.^5,6

• The share of gross mortgage advances with loan-to-value (LTV) ratios exceeding 90% increased by 0.8pp from the previous quarter to 6.0% and was 1.5pp higher than a year ago (Chart 3).⁷
• Within this, the share of mortgages advanced with LTVs over 95% was broadly unchanged from the previous quarter at 0.3%.⁸
• The share of mortgages advanced 2024 Q2 with LTV ratios exceeding 75% increased by 4.8pp on the quarter to 42.8%. This is 5.9pp higher than a year earlier.⁹

• The proportion of lending to borrowers with a high loan to income (LTI) ratio increased by 2.7pp from the previous quarter to 42.5%, but remained 1.2pp lower than a year earlier (Chart 4).10 Borrowers with high LTI are defined here as:
   – Borrowers with single income who had a LTI ratio of 4 or above. This increased by 0.3pp from the previous quarter to 8.3% of gross mortgage lending.¹¹
   – Borrowers with a joint income who had a LTI ratio of 3 or above. This increased by 2.4pp from the previous quarter to 34.1% of gross mortgage lending.¹² 

• The share of gross mortgage advances for buy-to-let purposes increased by 0.7pp from the previous quarter to 9.0%. This was 0.8pp higher than a year earlier (Chart 5). The share of advances to owner occupiers was 91.0%.^13,14
• Of the 91.0% of advances for owner occupiers, the share of gross advances for remortgages for owner occupation decreased by 3.3pp from the previous quarter to 28.6%, and was 3.7pp lower than a year earlier. The share for house purchase increased by 2.9pp from the previous quarter to 57.5%, and was 3.1pp higher than a year earlier. Further advances and other mortgages (including lifetime mortgages) accounted for 5.0% of gross advances in total.^15,16,17
• Of the 57.5% of advances for house purchases by owner occupiers, lending to first-time buyers increased by 1.6pp from the previous quarter to 27.4% of gross advances, and was 2.6pp higher than a year earlier. The share advanced to home movers increased by 1.3pp from the previous quarter to 30.1%, and was 0.5pp higher from a year earlier.^18,19

• New arrears cases decreased by 0.5pp from the previous quarter, to 11.0% 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), and was 5.3pp lower than a year earlier.²⁰
• The value of outstanding mortgage balances with arrears increased by 2.9% from the previous quarter to £21.9 billion. Total arrears were 32.0% higher than a year earlier and the highest since 2014 Q2 (Chart 6).²¹
• Of the £21.9 billion, £5.0 billion was accounted for by non-regulated mortgages (defined as mortgage contracts that fall under the wider category of residential loans to individuals. These include buy-to-let loans and other types of loans where the property is not for use by the borrower or qualifying dependents)(Chart 6).²²
• The proportion of the total loan balances with arrears, relative to all outstanding mortgage balances, increased on the quarter from 1.29% to 1.32%.²³ This is the highest since 2016 Q2.
• The number of new possessions in the quarter decreased by 5.6% from the previous quarter to 1,980 but was 33.2% higher than a year earlier.²⁴
• The number of stock possessions at the end of the 2024 Q2 increased by 7.4% from the previous quarter to 6,480. This was 34.5% higher than a year earlier.²⁵ 

¹ Table 1.11 sub table A row 9
*This data covers regulated mortgage lending, and non-regulated mortgage lending by firms which undertake regulated mortgage lending or administration of regulated mortgages.
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
a 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.
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 B row 10
²³ Table 1.7 sub table C row 11
²⁴ Table 1.7 sub table C row 29
²⁵ 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: 10 December 2024

• Further details about mortgage lenders and administrators statistics
• Further details on MLAR available from the FCA
• MLAR form