You are here: Home -

Lloyds arrears fall but repossessions in H1 uptick

by:
  • 27/07/2022
  • 0
Lloyds arrears in the first half of the year fell across residential and buy-to-let sectors but repossessions grew as litigation resumed after a freeze during the pandemic.

In its half-year results to 30 June 2022, Lloyds said that arrears of mortgage than three months were 1.2 per cent overall for total mortgage accounts, coming to 1.1 per cent for mainstream mortgages, 0.9 per cent for buy to let and 6.5 per cent for specialist.

This compares to the end of last year, where arrears overall came to 1.4 per cent, 1.2 per cent for mainstream, one per cent for buy to let and 7.5 per cent for specialist.

The lender continued that the stock of repossessions increased to 680 cases in the first half of the year, compared to 346 cases at 31 December 2021.

Lloyds said that this was because of the “resumption of litigation action” suspended during the pandemic.

Lloyds said its report reflected “continued resilient house prices and benign credit performance”.

Lloyds statutory profit before tax came to £3.6bn, against £3.9bn in the same period last year.

The lender said that the housing market was “resilient” despite macroeconomic uncertainty, but price growth and activity levels were expected to soften this year as the base rate and associated mortgage rate rises, and its consequent squeeze on income, would weaken consumer confidence.

Lloyds’ group chief executive Charlie Nunn said that its “strategic focus remains clear and disciplined”, pointing to the strategy it outlined in February to “transform our business, generate a stronger growth trajectory and enable the group to deliver higher, more sustainable returns”.

He said: “Our strong financial performance demonstrates the resilience of our business model and customer relationships, and has enabled us to enhance guidance for 2022.

“Just as we remain well placed to withstand the current macroeconomic uncertainty and continue to generate significant capital for our shareholders, so too do we remain committed to maintaining the support we give to our customers every day as they adapt to the challenges they face.”

Nunn took over Lloyds in August to replace Antonio Horta-Osorio, who left to serve as chairman of Credit Suisse.

Related Posts

Tags

There are 0 Comment(s)

You may also be interested in