Since the beginning of 2007, some 300 regulated mortgage lenders and administrators have been required to submit a Mortgage Lending & Administration Return (MLAR) each quarter, providing data on their mortgage lending activities. We published the first set of statistics based on these data in August 2008.

This second edition covers the period from 2007 Q1 to the end of 2008 Q2. As these new reporting and analytical processes become more refined, we intend to publish statistics more quickly after the end of each quarter. Subsequent editions will be published approximately 3 months after the end of each quarter.

The MLAR covers both regulated and non-regulated residential lending to individuals. Regulated loans are secured by a first charge on residential property, where the property is for the use of the borrower or a close relative. Non-regulated lending includes buy to let, second charge and, in some cases, further advances on loans that were originally taken out before regulation came into effect.

The MLAR provides a range of information on lending activities, including

  • balances of all outstanding loans
  • new advances and commitments, including purpose of loans
  • unsecuritised and securitised loans
  • interest rates on loans
  • lending criteria, including loan to value (LTV) and income multiples
  • lending to those with impaired credit histories; an
  • arrears and possessions

Key results: as at 2008 Q2

  • The total value of outstanding loans is £1,178bn, an increase of 7.5% compared to a year earlier. But quarterly growth continues to slow, with a Q2 increase of just 1%
  • Regulated loans continue to make up an increasing proportion of the overall loan book, and at 68% in Q2 this is 8% up on a year earlier
  • New lending peaked in Q3 last year at £102bn before declining to £72bn in Q2, leaving gross lending 26% lower than a year earlier
  • The balance between lending for house purchase and remortgage stabilised in Q2. Having dropped considerably in Q1 from 53% to 43%, the proportion of new lending used for house purchase in Q2 remained virtually unchanged at 44%. As a proportion of new lending commitments however, it is lower at 35%, implying continued weakness in the short term
  • Significantly fewer new loans have an LTV of more than 90%, reducing from a peak of 15% of new lending in early 2007 to 10% in 2008 Q1 and Q2. The use of combinations of high LTVs and high income multiples has also declined to 7% of new lending in each of Q1 and Q2
  • Loans to borrowers with an impaired credit history represented 2.1% of new lending in Q2, compared to 3.4% a year earlier
  • While the number of new arrears cases has stayed constant at around 54,000 each quarter since early 2007, consumers are increasingly struggling to clear their arrears and consequently the total number of accounts in arrears is increasing. At the end of Q2 there were 312,000 loan accounts in arrears, an increase of 3% on Q1 and 16% up on a year earlier
  • The proportion of the residential loan book that is in arrears, and hence not fully performing, rose to 2.58% at end Q2, up 0.14% in the quarter and up 0.48% on a year earlier
  • Numbers of new possessions have grown significantly since Q3 last year, with the 11,054 new cases in Q2 (after 9172 in Q1) being 71% higher than a year earlier.

Summary and full statistical tables are available below, and are accompanied by a commentary giving further technical information on the MLAR as well as further discussion of the results.

MLAR Statistics : October 2008 Edition

MLAR Statistics August 2008 Edition

For any technical queries on the tables contact: MLAR Statistics