Mortgage News
Repossessions and arrears continue to decrease
New arrears and repossession cases have decreased since Q2 2008, according to the latest statistics on mortgage lending and administration from the FSA.
Since the beginning of 2007, lenders and administrators have been required to submit data on their lending to the FSA each quarter in a Mortgage Lending & Administration Return.
The latest data covers the period from Q3 2008 until Q4 2009.
As of Q4 2009, the number of new possessions totalled 11,800 in Q4 2009, a decrease of 15% compared to Q3 2009.
The research also showed that new arrears cases reduced in each quarter of 2009. By the end of Q4 2009, the total number of accounts in arrears had fallen to 378,000.
New advances in Q4 2009 totalled £41bn, an increase of 2% on Q3 but 8% lower than the £45bn advanced in Q4 2008. House purchase continued to represent a high proportion of new lending, accounting for 62% of new advances.
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The proportion of new lending done at 90% LTV or more accounted for less than 2% of new advances in Q2, down from 6% in Q4 last year.
The proportion of loans to borrowers with an impaired credit history was little changed at 0.4% from last quarter’s low of 0.3%.