Latest MLAR shows 1.4% quarterly rise in new mortgage commitments
Gross mortgage lending increased by 11.1% compared to the previous quarter, rising to £77.4 bn and 31.7% higher than a year ago, according to the latest Mortgage Lenders and Administrators Return (MLAR).
The outstanding value of residential mortgage loans increased by 0.8% from the previous quarter to £1,760.6 billion, 3.1% higher than a year earlier.
Meanwhile, the value of new mortgage commitments rose 1.4% from the previous quarter to £79.2 billion, 1.3% higher than a year earlier.
The share of gross mortgage advances with interest rates less than 2% above Bank Rate decreased by 0.2 percentage points from the previous quarter to 94.5%, the lowest since 2023 Q1, and was 0.6pp lower than a year earlier.
Meanwhile, higher LTV mortgages increased with the share of gross mortgage advances with loan-to-value (LTV) ratios exceeding 90% increasing 0.4pp from the previous quarter to 8.4%, the highest share since 2008 Q2, and 1.4pp higher than a year earlier.
In the buy-to-let sector, the share of gross mortgage advances decreased by 0.9pp from the previous quarter to 8.0%, the lowest since 2024 Q3, and 1.2pp lower than a year earlier.
The share of gross mortgage advances for house purchase for owner occupation decreased by 1.6pp from the previous quarter to 56.1% but remained 0.1pp higher than a year earlier. Meanwhile, the share of gross advances for remortgages for owner occupation increased by 3.1pp from the previous quarter to 31.2%, the highest since 2024 Q1, and 2.2pp higher than a year earlier.
Value of mortgage arrears falls
The value of mortgages in arrears fell, down by 1.9% from the previous quarter to £19.7 billion, the lowest since 2023 Q3, and 7.3% lower than a year earlier, however the proportion of total mortgage loan balances with arrears, relative to all outstanding mortgage balances, remained unchanged from the previous quarter at 1.1%, 0.1pp lower than a year earlier.
Jon Cooper, director of mortgages at Aldermore, said: “The figures suggest activity is beginning to strengthen across the mortgage market. The 1.4% increase in new mortgage commitments from the previous quarter to £79.2 billion also indicates that the pipeline for the coming months is building.”
Nathan Emerson, CEO of Propertymark, also welcomed the latest figures: “When looking at the year to date, we have seen a myriad of complications within the economy that were largely unexpected at the very start of the year. From a consumer viewpoint, affordability has rightly been in sharp focus; however, it is extremely welcome news to see the value of gross mortgage advances increase during the second quarter of 2026.”
