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New mortgage advances rise 7% in Q3

New mortgage advances increased 7 per cent in the third quarter of this year to £40bn, up from £37bn in Q2, according to the latest FSA mortgage lending data.

New commitments fell 10 per cent from £40bn in Q2 to £36bn last quarter.

The value of outstanding loans totalled £1.23trn, rising marginally from £1.2trn in Q2.

The average interest rate on new advances increased from 3.78 per cent to 3.89 per cent. There was an increase in the rates for both variable and fixed rate lending.

Lending for house purchases accounted for 66 per cent of new advances, rising from 62 per cent in the previous quarter.

The proportion of new lending done at 90 per cent loan-to-value remained at 2 per cent for the third consecutive quarter.

The proportion of loans to borrowers with an impaired credit history remained at 0.3 per cent, also for the third consecutive quarter.

In Q3, there were 35,900 new arrears cases. This represents a 4 per cent increase on the 34,400 in Q2.

The total number of accounts in arrears at the end of the quarter rose 2 per cent to 303,200, up from 296,500 in Q2. This was 7 per cent less than the 324,300 in Q3, 2011.

The proportion of residential loans in arrears rose marginally from 2.45 in Q2 to 2.46 in the third quarter.

The number of new repossessions fell 2 per cent to 8,521 from 8,720.




FSA fines Cheshire Mortgage Corporation £1.2m

The FSA has fined mortgage lender Cheshire Mortgage Corporation Limited £1.225m for failing to treat customers fairly in the sale of mortgages and arrears handling from October 2004 to the end of 2009.

MS 10 Dec Spotlight

Media Spotlight: You Are Not A Gadget by Jaron Lanier

I recently tried to put together an email save the date for my wedding next year – not having anyones’ physical addresses and with many of my friends moving around several times a year I thought this would be the easiest way to get in touch with them. But there was a problem – I […]

Ex-HBOS CEO sorry for playing ‘a major part’ in bank’s failure

Former HBOS chief executive Sir James Crosby told MPs last week that he was “very sorry” for his role in the bank’s failure in 2008. Giving evidence to the Parliamentary Commission on Banking Standards on Wednesday last week, Crosby, who was in charge of HBOS between 2001 and 2006, said: “I was horrified and deeply […]

Guide cover

Guide: how to… communicate with your pension members

Effective communication of your pension scheme is a large part of getting auto-enrolment right. Delivering the same message to all employees is not necessarily the way to go. To assist you with the communication of your pension scheme, we have provided some key areas to think about, such as:

  • What to consider when segmenting your workforce
  • How to communicate to pension scheme members at the right time in their member lifecycle
  • What topics you should be discussing with your pension members
  • The new pension freedoms and the importance of communicating them


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