Q122: Residential mortgage loans rise by 4.4%

The figures were released by the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA), who jointly publish lending statistics every quarter. The data is provided by around 340 regulated mortgage and lenders, who are required to submit a Mortgage Lending and Administration Return (MLAR).

The statistics further found the value of gross mortgage advances in Q122 was £76.9bn, amounting to £6.7bn more than Q421. However, it was 7.5% lower than Q121.

New mortgage commitments were 6.7% greater in Q122 than for the previous quarter. At £82.5bn, it was also 6.6% greater than the same period in 2021.

The share of gross advances with interest rates less than two percent above Bank Rate was 85.5% in Q122 – 26.5% higher than the year before.

It was the highest seen since Q308, mostly driven by the 50 basis points increase in Bank Rate across the quarter.

The share for house purchase for owner occupation was 50.7%, down 2.3 percentage points (pp) on the previous quarter, and down 13.4pp from Q121.

The share of gross advances for remortgages for owner occupation was 29%, an increase of 11pp since Q121, and an increase of 0.8pp since Q421.

Outstanding balances with arrears’ value decreased by 1.1% over Q122, and 11.3% over the year.

They dropped to £13.3bn and account for 0.82% of outstanding mortgage balances – the lowest since this metric began to be recorded in 2007.

Despite the strong results, Halifax warned earlier this month (June) that house price growth was slowing down, as the cost-of-living crisis bites.