Only 1% rise in new advances for Q2 2012

New advances increased by 1 per cent in the second quarter to £37bn from £36.4bn the quarter before, according to the latest mortgage lending data from the FSA.

The figure in the second quarter was almost identical to a year earlier, when new advances reached £36.9bn.

New commitments totalled £40bn in the quarter, a 7 per cent rise from the £37bn of new commitments in the second quarter.

The total value of outstanding loans at the end of the second quarter was £1.2trn, an increase of 0.1 per cent on the previous quarter.

The average interest rate on new advances rose from 3.5 per cent in the first quarter to 3.78 per cent in Q2.

Lending for house purchase accounted for 62.4 per cent of new advances, up from 59.3 per cent in Q1.

The proportion of new lending done at a loan-to-value of 90 per cent or more was marginally above 2 per cent of the second consecutive month.

The proportion of loans to borrowers with an impaired credit history remained at 0.3 per cent.

In Q2, there were 34,400 new arrears cases, a decrease of 3 per cent on the last quarter and 4 per cent lower than the second quarter of 2011.

The total number of accounts in arrears at the end of the quarter fell by 2 per cent to 296,500, 11 per cent less than 332,709 accounts in arrears a year earlier.

The proportion of residential loans in arrears fell from 2.52 per cent in Q1 to 2.44 per cent in Q2.

The number of new repossession fell by 9 per cent from 9,510 in Q2 2011 to 8,720 in Q2 2012.