Mortgage lending up 20% in Q3, says FSA
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New advances totalled £40bn in Q3, an increase of 20% on Q2, shows the latest mortgage lending data from the Financial Services Authority.
New lending however remains lower than the £61bn advanced in Q3 2008.
The total value of outstanding loans is now £1,203bn, an increase of 1% compared to a year earlier, with lending for house purchases continuing to represent an increasing share of new lending, accounting for 57% of new advances and 62% of new commitments in this latest quarter.
Remortgages accounted for 34%, the lowest proportion since the series began in 2007.
The proportion of new lending done at an LTV of more than 90% continued to fall and accounted for less than 2% of new advances in the quarter.
The use of combinations of high LTVs and high income multiples also continued to decrease, down to 1% of new lending in Q3.
The proportion of loans to borrowers with an impaired credit history remained unchanged from last quarter, at a series low of 0.4%.
The regulator has also reported the number of new arrears cases continued to fall in Q3, down by 10% in the quarter to 46,000.
At the end of Q3 the number of accounts in arrears had fallen to 395,000, a decrease of 2% in the quarter, but 16% higher than in Q3 2008.
Meanwhile the number of new possessions totalled 14,000, a 2.8% increase on Q2, but some 5% below the peak at the start of the year.
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