BOE report on UK residential loan value
The Bank of England and Financial Conduct Authorit’s Mortgage Lenders and Administrators Statistics report revealed on tuesday that the overall value of residential loans was £1,272bn in the second quarter, the value of UK residential loans rose 1.8% in the second quarter compared to a year ago, with growth in first time buyers and buy-to-let lending.
Gross advances were £52.5bn during the quarter, up 1.9% on a year ago and 15.1% higher than the previous three months. The proportion of gross advances at fixed rates increased to 78.9% from 77.6% in the first quarter, the average interest rate on gross advances decreased by 16 basis points to 2.83% in second quarter compared to 2.99% in the first three months, marking the lowest rate since the series began in 2007.
First time buyers saw the value of residential loans increase to £11.4bn in the second quarter from £10.8bn last year, while the value for buy-to-let lending from £7bn to £8.3bn.