New repossessions at lowest level since Q2 2008

16 March 2010 | By Natalie Thomas

Since the beginning of 2007, some 300 regulated mortgage lenders and administrators have been required to submit a Mortgage Lending & Administration Return each quarter, providing data on their mortgage lending activities.

This latest edition covers the period from 2008 Q3 to the end of 2009 Q4.

Its findings show the number of new arrears cases has reduced in each quarter of 2009 and was down by a further 9% in the latest quarter to 41,000.

The total number of accounts in arrears had fallen to 378,000 by the end of 2009, a decrease of 4% in the quarter, and is similar to the level at the end of 2008.

The proportion of the residential loan book that is in arrears, and hence not fully performing, fell for the second successive quarter, to 3.42%.

The total value of outstanding loans is now £1,207bn, an increase of 1% compared to a year earlier.

New advances in the quarter totalled £41bn, an increase of 2% on Q3, but 8% lower than the £45bn advanced in Q4 2008, but new commitments were 6 lower than last quarter, at £36bn.

Lending for house purchase continues to represent an increasing share of new lending, accounting for 62% of new advances and 63% of new commitments in this latest quarter.

The proportion of new lending done at an LTV of more than 90% accounted for less than 2% of new advances in Q2, down from 6% in Q4 last year.

The use of combinations of high LTVs and high income multiples also continued to decrease, and accounted for less than 1% of new lending in Q4.

The proportion of loans to borrowers with an impaired credit history was little changed at 0.4%  from last quarter’s low of 0.3%.