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Mortgage rates in the UK were on a downward trend for more than a decade, improving the affordability of housing loans but also fueling demand and price growth. Under the pressure of soaring inflation, the Bank of England started a series of interest rate hikes in 2022, leading to a dramatic increase in interest rates and a heavier financial burden for homebuyers. Higher interest rates make it harder for homebuyers to get on the property ladder and are an issue for homeowners with loans up for renewal. That was the case for 1.4 million fixed-rate mortgages with a mortgage deal ending in 2023. Most homeowners are expected to face a monthly increase of repayments of less than 99 British pounds. Nevertheless, for more than a million borrowers this figure is projected to exceed 300 British pounds by the fourth quarter of 2026.
Importance of the mortgage market
Mortgages have been around for centuries. They are a major macroeconomic driver and a crucial mechanism for the transmission of monetary policies. Without the mortgage market, acquiring a home would be impossible for most people aspiring to have one of their own. Although the UK has one of the lowest homeownership rates in Europe, it is the largest residential mortgage market. That comes as no surprise since the predominant share of homeowners relies on a mortgage for home financing. In 2022, there were just over 1.1 million mortgage sales in the UK, with remortgages accounting for the largest share of loans, followed by first-time home purchases and repeat purchases. The average mortgage loan size has increased in recent years and stood at just over 190,000 British pounds in the third quarter of 2023. Mortgages vary in their interest rate and return period. A fixed interest rate is simply a mortgage with a fixed repayment rate, while the variable rate fluctuates over time depending on an underlying benchmark defined by the lender. Generally, the majority of UK mortgages are at a fixed rate.
How is the market going to develop in the coming years?
The rise in mortgage rates has naturally led to the market contracting and new mortgage lending decreasing. Over just a few months between August 2022 and January 2023, the number of mortgage approvals, including house purchases and remortgaging, halved. That downward trend is forecast to continue until 2024, affecting both private individuals and landlords. However, how the market develops is mainly dependent on inflation and the base interest rate.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Dec 20, 2023
Key insights
- Outstanding residential mortgage lending
- 1.9tr EUR
Detailed statistics
Outstanding residential mortgage lending in Europe 2023, by country
- Number of mortgage sales
- 1.2k
Detailed statistics
Number of mortgage sales in the UK 2014-2023, by borrower type
- Homeownership rate
- 65.1%
Detailed statistics
Homeowners with and without an outstanding mortgage in Europe 2023, by country
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Introduction
7
- Premium Statistic Mortgage affordability in the UK 2002-2022 with a forecast until 2026
- Premium Statistic Average mortgage interest rates in the UK 2000-2024, per quarter and type
- Premium Statistic Gross mortgage lending in the UK 2007-2023
- Basic Statistic Outstanding amounts of lending to individuals in the UK 2007-2024, by loan type
- Premium Statistic Regional median LTV ratio for mortgage sales in the UK 2018 to 2023
- Basic Statistic Gross mortgage lending market share of leading UK banks 2022-2023
- Premium Statistic Building societies ranked by group assets in the UK 2023
Introduction
- Premium Statistic Mortgage affordability in the UK 2002-2022 with a forecast until 2026
Mortgage affordability in the UK 2002-2022 with a forecast until 2026
Mortgage affordability in the United Kingdom (UK) from 2002 to 2022 with a forecast until 2026
- Premium Statistic Average mortgage interest rates in the UK 2000-2024, per quarter and type
Average mortgage interest rates in the UK 2000-2024, per quarter and type
Average interest rates for mortgages in the United Kingdom (UK) from March 2000 to January 2024, by type of mortgage
- Premium Statistic Gross mortgage lending in the UK 2007-2023
Gross mortgage lending in the UK 2007-2023
See Also40+ Home Ownership Statistics for the UK in 2024Hundreds of thousands to escape mortgage crisis in boost for house pricesA US-style house price disaster is heading for Britain – and the damage will run deeperQualifying for a £250,000 Mortgage: What You Need to KnowTotal value of gross mortgage lending in the United Kingdom (UK) from 2007 to 2023 (in billion GBP)
- Basic Statistic Outstanding amounts of lending to individuals in the UK 2007-2024, by loan type
Outstanding amounts of lending to individuals in the UK 2007-2024, by loan type
Outstanding amounts of lending to individuals excluding student loans in the United Kingdom (UK) from January 2007 to February 2024, by loan type (in billion GBP)
- Premium Statistic Regional median LTV ratio for mortgage sales in the UK 2018 to 2023
Regional median LTV ratio for mortgage sales in the UK 2018 to 2023
Median loan-to-value (LTV) ratio for mortgage sales in the United Kingdom (UK) from 2018 to 2023, by region
- Basic Statistic Gross mortgage lending market share of leading UK banks 2022-2023
Gross mortgage lending market share of leading UK banks 2022-2023
Largest mortgage lenders in the United Kingdom (UK) from 2022 to 2023, by market share
- Premium Statistic Building societies ranked by group assets in the UK 2023
Building societies ranked by group assets in the UK 2023
Leading building societies in the United Kingdom (UK) in 2023, by total group assets (in million GBP)
Mortgage volumes
9
- Premium Statistic Number of fixed and variable rate mortgage sales in the UK 2018-2023, by quarter
- Premium Statistic Average value of mortgages granted in the UK 2016-2023, per quarter
- Premium Statistic Number of mortgage approvals in the UK 2017-2023, per month
- Premium Statistic Number of mortgage approvals in the UK 2012-2023, by loan type
- Basic Statistic Gross mortgage lending and change from previous year in the UK 2007-2023, per quarter
- Basic Statistic Value of mortgage approvals in the UK 2017-2023
- Premium Statistic Residential loans for house purchase (gross advances) in the UK 2015-2023, by scheme
- Premium Statistic Mortgage loans distribution (gross advances) in the UK 2015-2023, by purpose
- Premium Statistic Gross mortgage lending of building societies in the UK 2017-2023, per month
Mortgage volumes
- Premium Statistic Number of fixed and variable rate mortgage sales in the UK 2018-2023, by quarter
Number of fixed and variable rate mortgage sales in the UK 2018-2023, by quarter
Total number of fixed and variable rate mortgage sales in the United Kingdom (UK) from 1st quarter 2018 to 4th quarter 2023 (in 1,000s)
- Premium Statistic Average value of mortgages granted in the UK 2016-2023, per quarter
Average value of mortgages granted in the UK 2016-2023, per quarter
Average value of mortgages granted in the United Kingdom (UK) from 1st quarter 2016 to to 3rd quarter 2023 (in 1,000 GBP)
- Premium Statistic Number of mortgage approvals in the UK 2017-2023, per month
Number of mortgage approvals in the UK 2017-2023, per month
Number of mortgage approvals for house purchase lending and remortgaging (lending secured on dwellings) in United Kingdom (UK) from January 2017 to October 2023
- Premium Statistic Number of mortgage approvals in the UK 2012-2023, by loan type
Number of mortgage approvals in the UK 2012-2023, by loan type
Total number of mortgage approvals in the United Kingdom (UK) from January 2012 to July 2023, by loan type (in 1,000s)
- Basic Statistic Gross mortgage lending and change from previous year in the UK 2007-2023, per quarter
Gross mortgage lending and change from previous year in the UK 2007-2023, per quarter
Total value of gross mortgage lending and annual percentage change in the United Kingdom (UK) from 1st quarter 2007 to 3rd quarter 2023 (in billion GBP)
- Basic Statistic Value of mortgage approvals in the UK 2017-2023
Value of mortgage approvals in the UK 2017-2023
Total value of approvals for house purchase lending and remortgaging (lending secured on dwellings) in United Kingdom (UK) from January 2017 to July 2023 (in million GBP)
- Premium Statistic Residential loans for house purchase (gross advances) in the UK 2015-2023, by scheme
Residential loans for house purchase (gross advances) in the UK 2015-2023, by scheme
Breakdown of gross advances for new house purchase residential loans in the United Kingdom (UK) from 1st quarter 2015 to 2nd quarter 2023, by scheme
- Premium Statistic Mortgage loans distribution (gross advances) in the UK 2015-2023, by purpose
Mortgage loans distribution (gross advances) in the UK 2015-2023, by purpose
Distribution of gross advances on residential mortgage loans in the United Kingdom (UK) from the 1st quarter 2015 to the 2nd quarter 2023, by loan purpose
- Premium Statistic Gross mortgage lending of building societies in the UK 2017-2023, per month
Gross mortgage lending of building societies in the UK 2017-2023, per month
Monthly value of building societies residential mortgage loans in the United Kingdom (UK) from January 2017 to September 2023 (in million GBP)
Households with mortgage: context and distribution
6
- Basic Statistic Homebuyer sentiment in the UK 2012-2023, per quarter
- Premium Statistic Distribution of new homes with a mortgage in the UK 2023, by type
- Basic Statistic Homeowner distribution in England 2023, by home financing and age
- Premium Statistic Share of homes with mortgage in 2023, by household type
- Premium Statistic First-time buyer mortgage in the UK 2022-2023, by region
- Premium Statistic Major barriers to buying a residential property in the UK 2016-2023
Households with mortgage: context and distribution
- Basic Statistic Homebuyer sentiment in the UK 2012-2023, per quarter
Homebuyer sentiment in the UK 2012-2023, per quarter
Share of people in the United Kingdom (UK) from 1st quarter 2012 to 3rd quarter 2023, by current position on the residential real estate market
- Premium Statistic Distribution of new homes with a mortgage in the UK 2023, by type
Distribution of new homes with a mortgage in the UK 2023, by type
Distribution of new homes with mortgage in the United Kingdom (UK) in 2023, by property type
- Basic Statistic Homeowner distribution in England 2023, by home financing and age
Homeowner distribution in England 2023, by home financing and age
Distribution of homeowners in England in 2023, by type of home financing and age
- Premium Statistic Share of homes with mortgage in 2023, by household type
Share of homes with mortgage in 2023, by household type
Distribution of persons buying homes with mortgage in England in 2023, by household type
- Premium Statistic First-time buyer mortgage in the UK 2022-2023, by region
First-time buyer mortgage in the UK 2022-2023, by region
Average mortgage of first-time buyers in the United Kingdom (UK) from 2022 to 2023, by region (in GBP)
- Premium Statistic Major barriers to buying a residential property in the UK 2016-2023
Major barriers to buying a residential property in the UK 2016-2023
Share of respondents who consider certain issues as barriers to homeownership in the United Kingdom (UK) from 2016 to 2023
Mortgage repayments
6
- Basic Statistic Mortgage payment to income share in the UK 2000-2023, by type of buyer
- Basic Statistic Value of regular mortgage repayments in the UK 2012-2023, per quarter
- Basic Statistic Secured lending: repayments on redemption in the UK 2012-2023, per quarter
- Premium Statistic Value of mortgage lump sum repayments in the UK 2012-2023, per quarter
- Premium Statistic Mortgage interest and council tax: weekly household spending in the UK 2022, by type
- Premium Statistic Dwellings and mortgages: weekly household spending in the UK 2022, by type
Mortgage repayments
- Basic Statistic Mortgage payment to income share in the UK 2000-2023, by type of buyer
Mortgage payment to income share in the UK 2000-2023, by type of buyer
Total mortgage payment as a percentage of income in the United Kingdom (UK) from 2000 to 2023, by type of buyer
- Basic Statistic Value of regular mortgage repayments in the UK 2012-2023, per quarter
Value of regular mortgage repayments in the UK 2012-2023, per quarter
Quarterly regular repayments of lending secured on dwellings (home purchase loans and remortgaging) in the United Kingdom (UK) from 1st quarter 2012 to 3rd quarter 2023 (in million GBP)
- Basic Statistic Secured lending: repayments on redemption in the UK 2012-2023, per quarter
Secured lending: repayments on redemption in the UK 2012-2023, per quarter
Quarterly repayments on redemption of loans secured on dwellings (house purchase or remortgaging) in the United Kingdom (UK) from 1st quarter 2012 to 3rd quarter 2023 (in million GBP)
- Premium Statistic Value of mortgage lump sum repayments in the UK 2012-2023, per quarter
Value of mortgage lump sum repayments in the UK 2012-2023, per quarter
Quarterly mortgage lump sum repayments (house purchase loans and remortgaging) in the United Kingdom (UK) from 1st quarter 2012 to 3rd quarter 2023 (in million GBP)
- Premium Statistic Mortgage interest and council tax: weekly household spending in the UK 2022, by type
Mortgage interest and council tax: weekly household spending in the UK 2022, by type
Average weekly household expenditure on mortgage interest payments and council tax in the United Kingdom (UK) from 2021 to 2022, by type (in GBP)
- Premium Statistic Dwellings and mortgages: weekly household spending in the UK 2022, by type
Dwellings and mortgages: weekly household spending in the UK 2022, by type
Average weekly household expenditure on purchase or alteration of dwellings and mortgages in the United Kingdom (UK) in 2022, by type (in GBP)
Repossessions and consumer complaints
5
- Premium Statistic Residential mortgage loan write-offs: share in the UK 2022, with a forecast by 2025
- Premium Statistic Number of landlord and mortgage repossessions in England 2010-2023, per quarter
- Premium Statistic Customer complaints relating to mortgage services in the UK 2010-2023
- Basic Statistic Customer complaints about mortgage endowments in the UK 2009-2023
- Basic Statistic Complaints against home financing providers in the UK in H2 2022, by firm
Repossessions and consumer complaints
- Premium Statistic Residential mortgage loan write-offs: share in the UK 2022, with a forecast by 2025
Residential mortgage loan write-offs: share in the UK 2022, with a forecast by 2025
Share of residential mortgage loan write-offs in the United Kingdom (UK) in 2022, with a forecast until 2025
- Premium Statistic Number of landlord and mortgage repossessions in England 2010-2023, per quarter
Number of landlord and mortgage repossessions in England 2010-2023, per quarter
Number of landlord and mortgage lender repossessions in England and Wales from 1st quarter 2010 to 4th quarter 2023
- Premium Statistic Customer complaints relating to mortgage services in the UK 2010-2023
Customer complaints relating to mortgage services in the UK 2010-2023
Number of complaints regarding mortgage products and services in the United Kingdom (UK) from 2009/2010 to 2022/2023
- Basic Statistic Customer complaints about mortgage endowments in the UK 2009-2023
Customer complaints about mortgage endowments in the UK 2009-2023
Number of complaints regarding mortgage endowments in the United Kingdom (UK) from 2009/2010 to 2022/2023
- Basic Statistic Complaints against home financing providers in the UK in H2 2022, by firm
Complaints against home financing providers in the UK in H2 2022, by firm
Number of complaints relating to home financing products and services in the United Kingdom (UK) in the 2nd half of 2022, by company
