Mortgage News
FSA: New possessions drop to three-year low
The FSA has revealed that the number of new possessions dropped 8% in Q3 to 9145, the lowest figure recorded since the end of 2007.
In addition, the FSA’s mortgage lending data showed that, while the proportion of loans to borrowers with impaired credit history increased by 0.44%, new arrears cases fell for the seventh consecutive quarter, down 2% in Q3 to 36,600.
The total number of accounts in arrears dropped 2% in Q3 to 346,000, meaning that 2.97% of all residential loans are in arrears.
New mortgage advances totalled £41bn in the third quarter, up 12% on Q2, and almost the same as the same period last year.
The FSA’s figures showed that the total value of outstanding mortgage loans was £1.22trn in Q3, just 1% higher than the previous quarter, while new commitments fell 6% to £38bn. Yet, this was again in line with Q3 2009.
However, high LTV lending continued to be scarce, with new loans of 90% LTV or above making up just 2% of new advances for the second consecutive quarter.
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In addition, new lending with both high LTVs and high income multiples in Q3 made up just over 1% of new lending as it did in Q2.