New arrears have now fallen steadily to 51,000 in Q2 2009 from 60,000 in Q1 2009 and 68,000 in Q4 2008.
With borrowers still struggling to clear their arrears, the total number of loan accounts in arrears has increased since early 2007.
At the end of Q2 2009 there were 403,000 loan accounts in arrears, an increase of 3,000 or 1% since Q1 2009 and an increase of 30% on a year earlier.
Although the number of new possessions has grown significantly since Q3 2007, the sharply rising trend evident up to Q3 2008 has stabilised in the last three quarters.
In Q2 2009 the number of possessions was 13,610, which was 1,274 fewer than the 14,884 recorded for Q1 2009. However, worryingly it was still 23% higher than a year earlier.
In other data, the total value of outstanding residential loans measured £1,200bn, an increase of £12bn, compared to a year earlier.
The proportion of new lending for home purchases exceeded remortgage business for the first quarter since Q3 2007. New lending on home purchases accounted for 51% of total lending in Q2 2009, up from 36% in Q1 2009. This was the first quarter to show more than a 50% share since Q4 2007.
New loans for home purchases to first time buyers has increased slightly from about £3bn in Q1 2009 to £5bn in Q2 2009. However, proportions of new lending done at loan to value of more than 90% continue to fall, from a peak of 15% in early 2007 to under 3% in Q2 2009.
Paul Broadhead, head of mortgage policy at the BSA,said: “As research published yesterday by the BSA shows, the earlier a borrower contacts their lender, the more likely they are to stay in their home. Borrowers contacting their building society will find a sympathetic response and that their society will work with them to help overcome their problems.”
