The Bank of England and Financial Conduct Authority (FCA) has published the latest Mortgage Lenders and Administrators Statistics for the United Kingdom covering the period Q3 2014.
The overall value of the residential loan amounts outstanding was £1,256 billion in Q3 2014, an increase of 0.5% compared with Q2 2014 and 1.8% compared with Q3 2013.
Gross advances of £55.9 billion were recorded in Q3 2014. This was 13% higher compared with Q3 2013 and was the highest amount advanced in the third quarter of a year since Q3 2008.
New commitments increased slightly from £53.4 billion in Q2 2014 to £53.6 billion in Q3 2014, an increase of 6.2% compared with Q3 2013.
The proportion of gross advances at fixed rates increased for the eighth consecutive quarter to 82.6% in Q3 2014, the highest proportion since the series began in 2007.
The overall average interest rate on gross advances increased by 5bps, from 3.26% in Q2 2014 to 3.31% in Q3 2014.
The value of residential loans advanced to first time buyers increased over the quarter to £12.1 billion, the highest quarterly amount since Q3 2007.
Buy to let (BTL) lending increased from £5.9 billion advanced in Q3 2013 to £8.0 billion in Q3 2014, the highest quarterly amount since Q2 2008.
The proportion of gross advances at an LTV over 90% decreased by 0.3 percentage points over the quarter to 4.3% in Q3 2014.
David Newnes, director of Your Move and Reeds Rains estate agents, said: “Overall house purchase lending has gained much ground compared to last year, as the UK property market continues its offensive back from the recession. Particularly in the first half of 2014, initiatives like Help to Buy and higher-LTV lending provided welcome relief for potential first time buyers combatting stagnant interest rates on their savings and underwhelming wage growth in their quest for a deposit.
“The loan-to-income caps could become a potential sticking point for first-time buyers, and layers of mortgage regulation are threatening to further dampen demand for homes. However, the Government has extended an outstretched hand to aspiring buyers with last week’s stamp duty reform, which is a welcome gesture for the lower rungs of the housing ladder.”