MLAR Statistics Summary: Residential Loans to Individuals
Core Content Overview
This document provides a summary of residential loans to individuals in the UK, focusing on new business volumes, characteristics, and arrears and provisions. The data is not seasonally adjusted and is reported for the quarters of 2013 and 2014. The statistics are published by the Bank of England and FCA.
Summary Tables
Summary 1 (Sub Table A)
New Business Volumes
| Metric |
2013 Q3 (£ millions) |
2013 Q4 (£ millions) |
2014 Q1 (£ millions) |
2014 Q2 (£ millions) |
2014 Q3 (£ millions) |
2014 Q4 (£ millions) |
| Gross Advances |
49,539 |
51,473 |
47,074 |
51,493 |
55,882 |
53,614 |
| Net Advances |
7,235 |
8,997 |
7,001 |
8,908 |
11,034 |
53,614 |
| New Commitments |
50,491 |
50,316 |
48,883 |
53,449 |
53,614 |
53,614 |
Summary 2 (Sub Table B)
New Business Characteristics: Gross Advances
Interest Rates
| Type of Loan |
2013 Q3 (%) |
2013 Q4 (%) |
2014 Q1 (%) |
2014 Q2 (%) |
2014 Q3 (%) |
2014 Q4 (%) |
| Fixed rate loans |
3.40 |
3.30 |
3.32 |
3.35 |
3.43 |
3.43 |
| Variable rate loans |
3.07 |
2.99 |
2.93 |
2.83 |
2.79 |
2.79 |
| All loans |
3.32 |
3.25 |
3.24 |
3.26 |
3.31 |
3.31 |
Purpose of Loan
| Purpose |
2013 Q3 (%) |
2013 Q4 (%) |
2014 Q1 (%) |
2014 Q2 (%) |
2014 Q3 (%) |
2014 Q4 (%) |
| House purchase |
67.61 |
68.24 |
66.41 |
70.10 |
71.77 |
71.77 |
| Of which: First time buyers |
20.03 |
20.58 |
20.06 |
22.06 |
21.74 |
21.74 |
| Buy to let |
11.85 |
12.79 |
14.42 |
13.63 |
14.31 |
14.31 |
| Other |
35.73 |
34.87 |
31.93 |
34.41 |
35.73 |
35.73 |
| Further advances |
2.69 |
2.54 |
2.88 |
2.45 |
2.21 |
2.21 |
| Remortgage |
26.55 |
26.48 |
27.36 |
24.10 |
23.05 |
23.05 |
| Other |
3.16 |
2.74 |
3.34 |
3.35 |
2.96 |
2.96 |
Loan to Value (LTV) and Income Multiple
| LTV Band |
2013 Q3 (%) |
2013 Q4 (%) |
2014 Q1 (%) |
2014 Q2 (%) |
2014 Q3 (%) |
2014 Q4 (%) |
| Under 75% |
65.13 |
64.60 |
64.73 |
64.50 |
64.13 |
64.13 |
| 75% < 90% |
32.73 |
1.73 |
31.64 |
30.88 |
31.52 |
31.52 |
| 90% < 95% |
1.69 |
1.73 |
3.10 |
4.18 |
4.01 |
4.01 |
| Over 95% |
0.46 |
0.42 |
0.53 |
0.45 |
0.34 |
0.34 |
Income Multiple
| Income Multiple Band |
2013 Q3 (%) |
2013 Q4 (%) |
2014 Q1 (%) |
2014 Q2 (%) |
2014 Q3 (%) |
2014 Q4 (%) |
| Over 90% < 95% |
1.05 |
1.19 |
2.27 |
3.05 |
2.87 |
2.87 |
| Over 95% |
0.27 |
0.30 |
0.33 |
0.31 |
0.23 |
0.23 |
| All over 90% |
1.32 |
1.49 |
2.60 |
3.36 |
3.10 |
3.10 |
Credit History
| Credit History |
2013 Q3 (%) |
2013 Q4 (%) |
2014 Q1 (%) |
2014 Q2 (%) |
2014 Q3 (%) |
2014 Q4 (%) |
| Loans with impaired credit history |
0.20 |
0.20 |
0.20 |
0.19 |
0.20 |
0.20 |
| Loans without impaired credit history |
99.80 |
99.80 |
99.80 |
99.81 |
99.80 |
99.80 |
Summary 3 (Sub Table C)
Loan Balances Outstanding at End of Period
| Loan Type |
2013 Q3 (£ millions) |
2013 Q4 (£ millions) |
2014 Q1 (£ millions) |
2014 Q2 (£ millions) |
2014 Q3 (£ millions) |
2014 Q4 (£ millions) |
| Unsecuritised |
1,122,693 |
1,131,904 |
1,141,657 |
1,149,465 |
1,161,560 |
1,161,560 |
| Securitised |
111,112 |
106,436 |
101,317 |
99,825 |
94,050 |
94,050 |
| Overall residential loans to individuals |
1,233,805 |
1,238,340 |
1,242,974 |
1,249,289 |
1,255,610 |
1,255,610 |
Summary 4 (Sub Table D)
Arrears & Provisions: Unsecuritised and Securitised Loans
| Metric |
2013 Q3 (%) |
2013 Q4 (%) |
2014 Q1 (%) |
2014 Q2 (%) |
2014 Q3 (%) |
2014 Q4 (%) |
| Arrears cases at end of Qtr |
2.20 |
2.10 |
2.00 |
1.86 |
1.73 |
1.73 |
| Arrears cases (by severity) |
|
|
|
|
|
|
| 1.5% < 2.5% in arrears |
0.68 |
0.65 |
0.62 |
0.58 |
0.54 |
0.54 |
| 2.5% < 5% in arrears |
0.73 |
0.69 |
0.65 |
0.60 |
0.56 |
0.56 |
| 5% < 7.5% in arrears |
0.29 |
0.28 |
0.26 |
0.24 |
0.22 |
0.22 |
| 7.5% < 10% in arrears |
0.14 |
0.14 |
0.13 |
0.12 |
0.11 |
0.11 |
| Over 10% in arrears |
0.24 |
0.23 |
0.22 |
0.21 |
0.20 |
0.20 |
| Of which: First time buyers |
0.13 |
0.11 |
0.11 |
0.11 |
0.10 |
0.10 |
| Total (excluding 1.5% < 2.5%) |
1.98 |
1.90 |
1.85 |
1.76 |
1.69 |
1.69 |
Possession Cases
| Metric |
2013 Q3 (Units) |
2013 Q4 (Units) |
2014 Q1 (Units) |
2014 Q2 (Units) |
2014 Q3 (Units) |
2014 Q4 (Units) |
| New possessions in Qtr |
7,349 |
6,137 |
6,687 |
5,728 |
5,157 |
5,157 |
| Possessions cases sold in Qtr |
7,973 |
7,626 |
6,650 |
6,183 |
5,821 |
5,821 |
| Stock of possessions at end Qtr |
11,326 |
9,962 |
10,154 |
9,710 |
9,053 |
9,053 |
Notes and Methodology
- Loan Accounts: The number of loan accounts includes 1st charge, 2nd and subsequent charge loans, and some further advance loans. These figures are higher than CML's due to separate reporting for regulated and non-regulated loans.
- Arrears: Arrears are reported based on the threshold of 1.5% or more of the loan balance. The figures are higher than CML's because they include more loan types.
- Possession Cases: Possession cases are reported for individual loan accounts, and the numbers may be higher than CML's due to separate reporting of 1st and 2nd charge loans.
- Income Multiple: The income multiple refers to single: 3.50× or more and joint: 2.75× or more. This is used to assess loan risk.
