In The Mortgage Lenders and Administrators Return (MLAR), it found that lending rose to £69.3 billion, its highest level since 2022 Q3, and a significant 50.7% higher than a year earlier.
Gross mortgage advances were also up by 4.9% from the previous quarter to £68.8 billion, a two-year high. Gross lending was up 29.9% year-on-year.
The outstanding value of all residential mortgage loans increased by 0.5% to £1,678.2 billion, its highest ever level, and 1.3% higher than a year earlier.
Holly Tomlinson, financial planner at Quilter, said: “The latest mortgage lending data highlights a housing market that, despite ongoing economic uncertainty, remains remarkably resilient.
“Mortgage lending is picking up, with gross mortgage advances rising nearly 5% on the quarter to £68.8 billion—the highest level since the end of 2022.
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“More strikingly, new mortgage commitments have surged by over 50% compared to a year ago, indicating that many buyers and homeowners are keen to secure finance despite ongoing concerns over interest rates and house price trends.
“People are clearly adjusting to what is the new normal when it comes to mortgage rates. This has also translated into people being much more prepared for their fixed term deals coming to an end. For example, clients are getting in touch 12 to 18 months in advance wanting confirmation on what they can borrow so that when the time comes, they are able to get the best possible rate.”
Breakdown of lending
The share of lending for buy-to-let increased by 0.3 percentage points from the previous quarter to 8.2%, while 91.8% was lent to owner occupiers.
Of that 91.8% share for owner occipers, lending was broken down into:
- 23.5% for remortgages
- 63.7% for house purchase
- 4.6% for further advances and other mortgages (including lifetime mortgages).
Of the 63.7% of advances for house purchases, lending to first time buyers rose to its highest level at 29.6%, while the share to home movers fell to 34.1%.
