MLAR Statistics: December 2013 Edition Summary
Core Content Overview
This document provides a detailed summary of Residential loans to individuals (both Regulated and Non-regulated) in the UK, covering key metrics such as new business volumes, loan characteristics, loan book positions, arrears statistics, and provisions. The data spans from 2012 Q2 to 2013 Q3, highlighting trends and changes over time.
Main Sections and Key Information
1. New Business Volumes
| Metric |
2012 Q2 |
2012 Q3 |
2012 Q4 |
2013 Q1 |
2013 Q2 |
2013 Q3 |
| Gross Advances (£m) |
36,927 |
39,595 |
39,397 |
33,981 |
41,649 |
49,512 |
| Net Advances (£m) |
4,663 |
5,602 |
4,208 |
1,221 |
5,121 |
7,206 |
| New Commitments (£m) |
39,811 |
35,934 |
36,893 |
35,456 |
47,512 |
50,464 |
- Gross Advances show a fluctuation, peaking in 2013 Q3 at £49,512m.
- Net Advances increase in 2013 Q2 and Q3, indicating stronger lending activity after a dip in Q1.
- New Commitments also rise in 2013 Q3, reflecting increased lending commitments.
2. New Business Characteristics
(i) Purpose of Loan as % of Gross Advances (GA)
| Purpose |
2012 Q2 |
2012 Q3 |
2012 Q4 |
2013 Q1 |
2013 Q2 |
2013 Q3 |
| House Purchase |
62.40% |
66.24% |
66.04% |
63.37% |
64.95% |
67.60% |
| First Time Buyers |
16.46% |
18.22% |
19.10% |
18.24% |
19.10% |
20.03% |
| Buy to Let |
10.60% |
10.41% |
11.04% |
12.05% |
12.12% |
11.83% |
| Other |
35.35% |
37.61% |
35.91% |
33.07% |
33.74% |
35.74% |
| Further Advances |
3.43% |
3.15% |
2.83% |
3.51% |
2.99% |
2.69% |
| Remortgage |
30.87% |
27.19% |
27.86% |
29.44% |
28.26% |
26.56% |
| Other |
3.30% |
3.42% |
3.27% |
3.68% |
3.80% |
3.16% |
- House Purchase dominates new business, ranging from 62.40% to 67.60%.
- First Time Buyers show an increasing trend, reaching 20.03% in 2013 Q3.
- Remortgage accounts for a significant portion, but slightly decreases in 2013 Q3.
- Other purposes fluctuate, with a notable decrease in 2012 Q4 and Q3.
(ii) Purpose of Loan as % of New Commitments
| Purpose |
2012 Q2 |
2012 Q3 |
2012 Q4 |
2013 Q1 |
2013 Q2 |
2013 Q3 |
| House Purchase |
64.57% |
65.49% |
63.52% |
62.86% |
67.07% |
64.91% |
| Remortgage |
28.86% |
29.17% |
30.80% |
30.77% |
27.48% |
30.07% |
| Other |
6.58% |
5.35% |
5.68% |
6.37% |
5.45% |
5.01% |
- House Purchase remains the largest category, with slight variations.
- Remortgage is the second largest, showing an increase in 2012 Q4 but a decline in 2013 Q2.
- Other purposes vary, with a peak in 2012 Q4.
(iii) Interest Rates
| Type of Loan |
2012 Q2 |
2012 Q3 |
2012 Q4 |
2013 Q1 |
2013 Q2 |
2013 Q3 |
| Fixed Rate Loans |
4.22% |
4.33% |
4.10% |
3.80% |
3.58% |
3.40% |
| Variable Rate Loans |
3.20% |
3.32% |
3.30% |
3.28% |
3.14% |
3.07% |
| All Loans |
3.78% |
3.89% |
3.81% |
3.65% |
3.47% |
3.32% |
- Fixed rate loans have been increasing in proportion, reaching 77.32% in 2013 Q3.
- Average interest rates for all loans have been declining, from 3.78% in 2012 Q2 to 3.32% in 2013 Q3.
- Variable rate loans also show a downward trend, with rates dropping to 3.07% in 2013 Q3.
(iv) Loan to Value (LTV) and Income Multiple
| LTV Band |
2012 Q2 |
2012 Q3 |
2012 Q4 |
2013 Q1 |
2013 Q2 |
2013 Q3 |
| <75% |
67.28% |
68.10% |
66.26% |
67.02% |
65.23% |
65.11% |
| 75 < 90% |
30.32% |
29.58% |
31.65% |
30.90% |
32.29% |
32.74% |
| 90 < 95% |
1.76% |
1.87% |
1.71% |
1.62% |
2.02% |
1.69% |
| >95% |
0.64% |
0.44% |
0.37% |
0.46% |
0.46% |
0.46% |
- Loans with LTV <75% remain the most common, fluctuating slightly.
- Loans with LTV 75–90% show a slight decline in 2013 Q3.
- Loans with LTV >95% are the least common, with consistent low percentages.
(v) Credit History
| Credit Status |
2012 Q2 |
2012 Q3 |
2012 Q4 |
2013 Q1 |
2013 Q2 |
2013 Q3 |
| Impaired Credit |
0.27% |
0.25% |
0.29% |
0.24% |
0.20% |
0.19% |
| No Impaired Credit |
99.73% |
99.75% |
99.71% |
99.76% |
99.80% |
99.81% |
- Impaired credit accounts are minimal, with a slight decline in 2013 Q3.
- Most loans have no impaired credit history, indicating a generally healthy lending environment.
3. Loan Book Position at End of Period
| Metric |
2012 Q2 |
2012 Q3 |
2012 Q4 |
2013 Q1 |
2013 Q2 |
2013 Q3 |
| Unsecuritised (£m) |
1,099,894 |
1,102,516 |
1,106,221 |
1,109,628 |
1,113,717 |
1,122,677 |
| Securitised (£m) |
123,584 |
124,803 |
122,444 |
118,315 |
115,998 |
111,112 |
| Overall Residential Loans (£m) |
1,223,477 |
1,227,319 |
1,228,665 |
1,227,942 |
1,229,715 |
1,233,790 |
- Overall residential loans to individuals increase slightly over the period, reaching £1.233 billion in 2013 Q3.
- Unsecuritised loans are the majority, with a steady increase.
- Securitised loans show a slight decline, particularly in 2013 Q1 and Q2.
4. Arrears & Provisions
| Arrears Category |
2012 Q2 |
2012 Q3 |
2012 Q4 |
2013 Q1 |
2013 Q2 |
2013 Q3 |
| 1.5 < 2.5% in arrears |
0.76% |
0.76% |
0.74% |
0.74% |
0.72% |
0.68% |
| 2.5 < 5% in arrears |
0.80% |
0.80% |
0.79% |
0.79% |
0.77% |
0.73% |
| 5 < 7.5% in arrears |
0.32% |
0.32% |
0.31% |
0.30% |
0.29% |
0.28% |
| 7.5 < 10% in arrears |
0.15% |
0.15% |
0.14% |
0.14% |
0.14% |
0.13% |
| Over 10% in arrears |
0.24% |
0.24% |
0.24% |
0.24% |
0.23% |
0.23% |
| In Possession |
0.18% |
0.18% |
0.16% |
0.15% |
0.14% |
0.13% |
- Arrears cases remain low, with the majority in the 1.5–2.5% range.
- Total arrears as a percentage of total loan balances decline from 2.45% in 2012 Q2 to 2.19% in 2013 Q3.
- In possession cases also decrease, indicating fewer severe defaults.
5. Possession Cases
| Metric |
2012 Q2 |
2012 Q3 |
2012 Q4 |
2013 Q1 |
2013 Q2 |
2013 Q3 |
| New Possessions (Units) |
8,695 |
8,521 |
7,792 |
8,092 |
7,795 |
7,349 |
| Possessions Sold (Units) |
9,089 |
8,687 |
9,447 |
8,499 |
8,506 |
7,974 |
| Stock of Possessions (Units) |
14,953 |
14,889 |
13,321 |
12,877 |
12,034 |
11,326 |
- New possession cases decrease slightly in 2013 Q3.
- Possession stocks also decline, suggesting a reduction in severe defaults.
Key Observations
- The proportion of fixed rate loans has increased over time, indicating a shift in borrower preference.
- House purchase remains the dominant purpose of residential loans.
- Arrears and possession rates are low and declining, suggesting a stable lending environment.
- MLAR statistics are based on a broader definition of loan accounts compared to CML, leading to higher figures for arrears and possession.
