MLAR Statistics: September 2016 Edition Summary
Core Content Overview
This document provides statistics on residential loans to individuals in the UK, covering both regulated and non-regulated categories. The data is presented across three main tables and includes information on new business volumes, loan characteristics, and arrears and possession cases. The data is not seasonally adjusted and is reported for the 2015 and 2016 periods, divided into quarterly segments (Q1 to Q4).
Table 1: New Business Volumes (Sub Table A)
Summary
This table presents the new business volumes for residential loans to individuals, including:
- Gross advances: Total amount of loans issued.
- Net advances: Gross advances minus repayments.
- New commitments: Total new loan commitments.
Key Figures (in £ millions)
| Quarter |
Gross Advances |
Net Advances |
New Commitments |
| 2015 Q1 |
45,592 |
6,287 |
47,209 |
| 2015 Q2 |
52,560 |
9,954 |
59,562 |
| 2015 Q3 |
62,091 |
13,671 |
64,117 |
| 2015 Q4 |
63,084 |
14,208 |
59,460 |
| 2016 Q1 |
58,050 |
13,642 |
60,601 |
Table 2: New Business Characteristics (Sub Table B)
Summary
This table includes data on loan interest rates, loan purposes, and Loan to Value (LTV) and Income Multiple ratios.
Interest Rates
| Loan Type |
2015 Q1 |
2015 Q2 |
2015 Q3 |
2015 Q4 |
2016 Q1 |
2016 Q2 |
| Fixed rate loans |
3.11% |
2.91% |
2.79% |
2.72% |
2.66% |
2.52% |
| Variable rate loans |
2.58% |
2.50% |
2.47% |
2.51% |
2.52% |
2.52% |
| All loans |
2.99% |
2.83% |
2.73% |
2.69% |
2.63% |
2.63% |
- Fixed rate loans have seen a steady decline in average rates from 3.11% in 2015 Q1 to 2.66% in 2016 Q1.
- Variable rate loans have remained relatively stable, with rates fluctuating slightly between 2.50% and 2.52%.
- Overall interest rates have also decreased, from 2.99% in 2015 Q1 to 2.63% in 2016 Q2.
Loan Purposes (as % of gross advances)
| Purpose |
2015 Q1 |
2015 Q2 |
2015 Q3 |
2015 Q4 |
2016 Q1 |
2016 Q2 |
| House purchase |
65.94% |
67.53% |
70.11% |
69.28% |
68.95% |
61.79% |
| Remortgage |
27.19% |
26.17% |
24.14% |
25.01% |
25.27% |
32.65% |
| Other |
30.23% |
31.28% |
34.11% |
32.53% |
30.96% |
5.56% |
- House purchase remains the largest category, with a slight decline in 2016 Q2.
- Remortgage has shown a fluctuating trend, increasing in 2016 Q2.
- Other loan purposes have seen a significant drop in 2016 Q2, likely due to increased remortgage activity.
LTV and Income Multiple
| LTV Band |
2015 Q1 |
2015 Q2 |
2015 Q3 |
2015 Q4 |
2016 Q1 |
2016 Q2 |
| Under 75% |
67.56% |
65.94% |
65.54% |
66.41% |
68.34% |
65.10% |
| 75% < 90% |
29.00% |
30.47% |
31.16% |
30.41% |
28.93% |
30.85% |
| 90% < 95% |
3.03% |
3.31% |
3.09% |
3.01% |
2.52% |
3.88% |
| Over 95% |
0.41% |
0.29% |
0.22% |
0.17% |
0.20% |
0.18% |
- Loans with LTV under 75% have remained the most common, with a slight increase in 2016 Q1.
- Loans with LTV between 75% and 90% have seen a slight fluctuation.
- Loans with LTV over 95% have decreased in both 2015 and 2016.
Credit History
| Credit Status |
2015 Q1 |
2015 Q2 |
2015 Q3 |
2015 Q4 |
2016 Q1 |
2016 Q2 |
| Impaired credit history |
0.19% |
0.20% |
0.19% |
0.26% |
0.24% |
0.26% |
| No impaired credit |
99.81% |
99.80% |
99.81% |
99.74% |
99.76% |
99.74% |
- A very small percentage of loans are issued to borrowers with impaired credit history.
- Most loans are issued to borrowers without impaired credit history.
Table 3: Loan Book Position and Arrears & Provisions (Sub Table D)
Loan Book Position
| Loan Type |
2015 Q1 |
2015 Q2 |
2015 Q3 |
2015 Q4 |
2016 Q1 |
2016 Q2 |
| Unsecuritised |
1,177,276 |
1,187,745 |
1,197,765 |
1,210,410 |
1,222,471 |
1,240,971 |
| Securitised |
84,317 |
84,213 |
84,188 |
81,011 |
82,117 |
76,378 |
| Total residential loans |
1,261,593 |
1,271,957 |
1,281,953 |
1,291,421 |
1,304,588 |
1,317,349 |
- The total residential loan book has grown steadily from 2015 Q1 to 2016 Q2.
- Unsecuritised loans dominate the total, with a consistent increase over time.
- Securitised loans have shown a slight decline in 2016 Q2.
Arrears Cases
| Arrears Band |
2015 Q1 |
2015 Q2 |
2015 Q3 |
2015 Q4 |
2016 Q1 |
2016 Q2 |
| 1.5% < 2.5% in arrears |
0.49% |
0.47% |
0.44% |
0.41% |
0.40% |
0.41% |
| 2.5% < 5% in arrears |
0.52% |
0.49% |
0.46% |
0.44% |
0.43% |
0.45% |
| 5% < 7.5% in arrears |
0.20% |
0.20% |
0.19% |
0.18% |
0.18% |
0.20% |
| 7.5% < 10% in arrears |
0.10% |
0.10% |
0.09% |
0.09% |
0.09% |
0.11% |
| Over 10% in arrears |
0.19% |
0.19% |
0.18% |
0.18% |
0.21% |
0.37% |
- The percentage of loans in arrears has remained relatively stable, with a slight increase in 2016 Q2.
- Over 10% in arrears increased from 0.18% in 2015 Q4 to 0.21% in 2016 Q1, and further to 0.37% in 2016 Q2.
Possession Cases
| Metric |
2015 Q1 |
2015 Q2 |
2015 Q3 |
2015 Q4 |
2016 Q1 |
2016 Q2 |
| New possessions in Qtr |
3,157 |
2,671 |
2,881 |
2,392 |
2,546 |
2,644 |
| Possessions sold in Qtr |
4,738 |
3,705 |
2,999 |
2,868 |
2,644 |
2,644 |
| Stock of possessions |
6,426 |
5,249 |
5,012 |
4,421 |
4,357 |
4,357 |
- Possession cases have shown a decline from 2015 Q1 to 2016 Q2.
- The stock of possessions at the end of the period decreased slightly during 2016.
Notes on Methodology
- The data is not seasonally adjusted.
- Regulated and non-regulated loans are reported separately.
- The reporting threshold for arrears is 1.5% of the loan balance, which is lower than the CML's 2.5%, leading to higher arrears figures.
- 2nd charge lending was included in the regulated section from Q1 2016, affecting the consistency of data compared to previous periods.
- The number of loan accounts and possessions are based on individual loan accounts, not borrowers, which can lead to discrepancies with CML data.
