Value of outstanding mortgages increases by 3.8%

Latest Bank of England figures have shown that the total value of all outstanding residential mortgage loans was at £1,648 billion at the end of 2022 Q2, 3.8% higher than a year earlier when the outstanding value came to £1.590 billion.

The value of gross mortgage advances in 2022 Q2 was £77.9 billion, which was £1.0 billion greater than the previous quarter, but 12.6% lower than in 2021

Meanwhile, the value of new mortgage commitments shrunk by 2.6% in the year to £83.9bn.

Among this data, the report also shows that talk of appetite for buy-to-let (BTL) mortgages weakening may be misguided: the share of gross advances for BTL grew 2.2 percentage points over the year to 13.6%, which is the biggest slice taken for this purpose since Q2 2022.

The value of outstanding balances with arrears decreased by 0.7% over the quarter and 7.2% over the year, to £13.2 billion in 2022 Q2, and now accounts for 0.80% of outstanding mortgage balances, the lowest since recording began in 2007.