Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

FCA Reports Sharp Rise in UK Mortgage Lending in Q2 2026

UK gross mortgage advances increased by 11.1% in the second quarter of 2026, reaching £77.4 billion, according to the latest figures from the Financial Conduct Authority (FCA). The FCA’s Mortgage Lending and Administration Return (MLAR) statistics also show that gross mortgage advances were 31.7% higher than in the same quarter of the previous year.

The outstanding value of all residential mortgage loans rose by 0.8% from the previous quarter, totalling £1,760.6 billion. Compared to a year earlier, the outstanding value of residential mortgage loans was 3.1% higher.

New mortgage commitments—lending agreed but not yet advanced—increased by 1.4% from the previous quarter to £79.2 billion. This figure was also 1.3% higher than the same period last year.

The MLAR statistics are compiled from data submitted quarterly by around 340 regulated mortgage lenders and administrators. These figures are published jointly by the FCA and the Prudential Regulation Authority (PRA), which share responsibility for regulating mortgage lenders and administrators in the UK.

The statistics cover a range of data, including the outstanding value of residential mortgage loans, gross mortgage advances by loan-to-value ratios, income multiples, and the purpose of the loan, as well as the value of new mortgage commitments. They also include information on the proportion of mortgage loans above the Bank of England base rate.

These trends in mortgage lending and commitments may be relevant for UK letting agents and inventory clerks monitoring market activity and demand for rental properties.