The outstanding value of all residential mortgages loans was £1,513.3bn at the end of Q2 2020, 3.2% higher than a year earlier, according to latest figures published by Bank of England.

The value of gross mortgage advances in Q2 2020 was £44.1bn, 33.3% lower than in Q2 2019 and the value of new mortgage commitments (lending agreed to be advanced in the coming months) was 53.2% lower than a year earlier, at £34.3bn.

Figures show that the share of gross advances with interest rates less than 2% above Bank Rate was 73.3% in Q2 2020, 10.5 percentage points (pp) lower than a year ago. The decrease was driven by the 65 basis point (bp) cut in Bank Rate in March rather than any significant change in mortgage interest rates.

The share of mortgages advanced in 2020 Q2 with loan to value (LTV) ratios exceeding 90% was 4.9%, 0.6pp lower than a year earlier. In addition, the share of gross mortgage lending for buy-to-let purposes (covering house purchase, remortgage and further advance) was 14.4%, an increase of 1.2pp from Q2 2019.

Finally, the value of outstanding balances with some arrears increased by 2.8% over the quarter to £14.1bn, and now accounts for 0.93% of outstanding mortgage balances.

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