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.
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.
