Arrears continue downward trend

Published on

The FSA’s latest Mortgage Lending Data for the United Kingdom covering the period Q1 2010 shows that the total value of outstanding loans is now £1,206 billion, almost the same as for the last quarter.

New advances in the quarter totalled £32 billion, 22% lower than in Q4, but much the same as the amount advanced in Q1 2009, while new commitments totalled £34 billion, some 6% lower than last quarter.

The share of lending for house purchase decreased from the peak reached last quarter, to account for 58% of new advances and 59% of new commitments in this latest quarter.

The proportion of new lending done at an LTV of more than 90% accounted for less than 2% of new advances for the third successive quarter.

New lending with a combination of high LTVs and high income multiples again accounted for less than 1% of new lending in Q1.

The proportion of loans to borrowers with an impaired credit history was also little changed for the third quarter in succession at 0.35%.

The number of new arrears cases continued the downward trend started last year, with a further reduction in the number in Q1 to 40,500 (-2%).

For the last three quarters the total number of accounts in arrears has also fallen, by some 4% in the latest quarter, to 362,000.

The proportion of the residential loan book that is in arrears, and hence not fully performing, also fell for the third successive quarter, to 3.23%.

The number of new possessions totalled 10,500, a decrease of 11% on last quarter and the lowest figure for two years.

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Mortgage brokers have little to fear from AI, says Mortgageforce boss

Mortgage brokers should embrace artificial intelligence rather than fear it will ultimately replace them,...

Waiting for completion causes greater anxiety than saving for a deposit

Delays towards the end of the homebuying process are a greater source of anxiety...

Leasehold delays put Christmas property completions under pressure

Homebuyers hoping to complete before Christmas face increasingly tight deadlines, with leasehold transactions and...

Conveyancing firms warned over risks of uncoordinated AI adoption

Conveyancing firms risk undermining the benefits of artificial intelligence unless they address weaknesses in...

Masthaven Finance revenue rises sixfold as lender enters FT growth ranking

Masthaven Finance has been placed 48th in the Financial Times' inaugural ranking of the...

Latest publication

Other news

Mortgage brokers have little to fear from AI, says Mortgageforce boss

Mortgage brokers should embrace artificial intelligence rather than fear it will ultimately replace them,...

Waiting for completion causes greater anxiety than saving for a deposit

Delays towards the end of the homebuying process are a greater source of anxiety...

Leasehold delays put Christmas property completions under pressure

Homebuyers hoping to complete before Christmas face increasingly tight deadlines, with leasehold transactions and...