9 December 2025
If you are covering the latest Bank of England Mortgage Lenders and Administrators Statistics, please see the following comment from Ian Futcher, financial planner at Quilter:
Mortgage lending has picked up meaningfully in the latest figures, but it’s important to remember this comes after a very slow year in the housing market. High interest rates and affordability pressures kept many would-be buyers on the sidelines.
Gross mortgage advances jumped by almost 37% compared to the previous quarter and are now nearly a quarter higher than a year ago, while new mortgage commitments reached their highest level since late 2022. That suggests growing confidence as mortgage rates inch down and people begin to move forward with plans they may have paused.
Even so, the data shows how tough it remains for those trying to buy. Lending at over 90% loan-to-value has risen to its highest share since before the financial crisis, and a rising proportion of borrowers are stretching their incomes further to secure a home. This reflects the reality of high house prices and the lingering impact of elevated borrowing costs.
There is some reassuring news, with mortgage arrears still very low and falling versus last year, indicating that households who already have mortgages are largely managing repayments despite the squeeze.
Overall, the market is improving from a weak base, but affordability challenges remain front and centre, particularly for first-time buyers. Continued reductions in mortgage rates will be key to ensuring this recovery is sustainable rather than reliant on people taking on greater financial strain.
