Latest Bank of England figures show that mortgage lending recorded its strongest quarterly jump in five years in the third quarter of 2025, with gross advances rising 36.9% to £80.4 billion. The increase marks the sharpest quarterly gain since 2020 amid a renewed surge in the UK property market.

The data showed that the outstanding value of all residential mortgage loans increased by 0.9% from the previous quarter to £1,733.7 billion, and was 2.9% higher than a year earlier.

The value of new mortgage commitments increased by 1.6% from the previous quarter to £79.4 billion, the highest since 2022 Q3, and was 20.3% higher than a year earlier.

The share of gross mortgage advances with loan-to-value (LTV) ratios exceeding 90% increased by 0.3 percentage points (pp) from the previous quarter to 7.4%, the highest share since 2008 Q2, and was 0.8pp higher than a year earlier.

The proportion of lending to borrowers with a high loan-to-income (LTI) ratio increased by 3.3pp from the previous quarter to 44.7%, the largest increase since 2020 Q3, but remained 0.6pp lower than a year earlier.

The value of outstanding mortgage balances with arrears decreased by 2.9% from the previous quarter to £20.6 billion, and was 5.8% lower than a year earlier.

The proportion of the total mortgage loan balances with arrears, relative to all outstanding mortgage balances, has stayed the same as the previous quarter at 1.2%, and was 0.1pp lower than a year earlier.