Commentary on Mortgage lending statistics Q4 2025

Data First published:

10/03/2026

Last updated: 10/03/2026
The FCA and the Prudential Regulatory Authority (PRA) both have responsibility for the regulation of mortgage lenders and administrators. We jointly publish the mortgage lending statistics every quarter.

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Since the beginning of 2007, around 340 regulated mortgage lenders and administrators have been required to submit a Mortgage Lending and Administration Return (MLAR) each quarter, providing data on their mortgage lending activities.

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).
• 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. Download the data from the charts below - MLAR statistics: detailed tables (Excel)

Chart tips: hover over the data series to view the data values and filter the data categories by clicking on the legend.

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 | | | |
| Business 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 |
| | | | | | | | | |
| R esidential loan amounts outstanding | | | | | | | | |
| Total Regulated and Non-regulated | 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.

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Chart

Data table

Download 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 (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.

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Chart

Data table

Download 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).

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.

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.

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.

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Chart

Data table

Download 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).

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.

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.

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Chart

Data table

Download 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.

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). 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.
• 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.

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Chart

Data table

Download 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%.

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.

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.

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Chart

Data table

Download 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). 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.

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.

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.

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.

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.

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The data on this page is available under the terms of the Open Government Licence.

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