Q3 Sees Rise In Outstanding Value of Residential Mortgages

According to data published by the Financial Conduct Authority (FCA), there was an increase in the third quarter of 2018 in the outstanding value of residential mortgage lending to £1,430 billion. This was an increase of 3.2% when compared with the figures produced for the same period in 2017. This was good news for the residential mortgage market and also for borrowers.

Also, it was pleasing to read that the gross mortgage advances value went up by 3.7% to £73.5 billion in the 12 months to the third quarter of 2018. This is another indication of the increased amount being lent for people to buy or remortgage properties.

Another promising statistic was the one revealing that new mortgage commitments were 4.7% greater than 12 months ago. This is perhaps a reflection of the interest being shown by new buyers looking for residential properties and the increased willingness of residential mortgage lenders to provide finance for potential purchases.

There has been a rise in lending to people seeking high loan to income mortgages with a rise of 1.7% being seen between Q2 and Q3 of 2018. There has also been a rise in the number of mortgages with an LTV (loan to valuation) of more than 90% to a figure of 4.3%. Is this an indication of a relaxation in the lending policy of some lenders?

It was disappointing to read that there has been a rise in the value of outstanding mortgages in arrears from £14.3 billion in the second quarter of 2018 to £14.5 billion in the third quarter of 2018.

Overall, most of the above figures make for good reading and let us hope that the positive statistics continue to be forthcoming for the remainder of 2018 and into 2019 and beyond. The residential mortgage market appears to be active with many lenders providing such finance here in the UK. We will continue to provide our readers with periodic updates in 2019.


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