Repossessions at three-year low
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Figures released from the Financial Services Authority today show repossessions reached a three-year low in Q4 of 2010.
The number of new possessions in the quarter continued to decline, decreasing by 10% to 8,246, the lowest figure for three years.
Arrears totalling £40m on 13,764 accounts were capitalised in Q4, but the number of new arrears cases in Q4 was 38,800, 6% higher than last quarter.
The proportion of the residential loan book that is in arrears, and hence not fully performing, changed little, at 2.95%.
The latest Mortgage Lending Data also shows new advances in the quarter totalled £37bn, 10% lower than in Q3 and some 11% down on the amount advanced in Q4 2009 and new commitments totalled £35bn, 9% down on last quarter and also down on Q4 last year.
Lending for house purchase represented a smaller share of new lending this quarter, accounting for some 61% of new advances and 55% of new commitments, while the proportion of new lending done at an LTV of more than 90% remained unchanged for the third quarter in succession, accounting for just over 2% of new advances.
The proportion of loans to borrowers with an impaired credit history was 0.3%, as it has been since Q3 2009.
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