Remortgaging at two-year low

Published on

The total value of outstanding loans is now £1,203 billion, an increase of 1% compared to a year earlier, according to the FSA’s Mortgage Lending Data for the United Kingdom covering Q2 2008 to Q3 2009.

New advances totalled £40 billion, an increase of 20% on Q2, but remain lower than the £61 billion advanced in Q3 2008.

Lending for house purchase has continued to represent an increasing share of new lending, accounting for 57% of new advances and 62% of new commitments in this latest quarter.

Remortgages accounted for 34%, the lowest proportion since the series began in 2007.

The proportion of new lending done at an LTV of more than 90% continued to fall and accounted for less than 2% of new advances in the quarter.

The use of combinations of high LTVs and high income multiples also continued to decrease, down to 1% of new lending in Q3.

The proportion of loans to borrowers with an impaired credit history remained unchanged from last quarter, at a series low of 0.4%.

The number of new arrears cases continued to fall, down by 10% in the quarter to 46,000.

At the end of Q3 the number of accounts in arrears had fallen to 395,000, a decrease of 2% in the quarter, but 16% higher than in Q3 2008.

The number of new possessions totalled 14,000, a 2.8% increase on Q2, but some 5% below the peak at the start of the year.

Shelter director of policy and campaigns Kay Boycott said: “These figures reflect the fact that schemes to help struggling homeowners are making a difference on the ground and

Latest POLL

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

Three-quarters of brokers expect rate hold

76% of specialist brokers expect that the Bank of England’s Monetary Policy Committee (MPC)...

The Finance Family adopts Acre as platform for growth

Midlands-based The Finance Family has migrated its team of over 20 brokers to Acre’s...

‘Consumer thinking’ holding businesses back from better finance solutions

New research from Time Finance has revealed that many UK businesses default to consumer-style...

British Business Bank reports how pivotal first Covid lockdown was

Five years since the first Covid-19 lockdown, new data from Start Up Loans, part...

Other news

Three-quarters of brokers expect rate hold

76% of specialist brokers expect that the Bank of England’s Monetary Policy Committee (MPC)...

The Finance Family adopts Acre as platform for growth

Midlands-based The Finance Family has migrated its team of over 20 brokers to Acre’s...

‘Consumer thinking’ holding businesses back from better finance solutions

New research from Time Finance has revealed that many UK businesses default to consumer-style...