FSA data shows arrears and repossessions down

Nia Williams

March 16, 2010

The data reveals that both arrears and repossessions are down over the quarter while new advances increased by 2%. However, new commitments were 6% lower than the third quarter of 2009.

The data showed:

  • 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
  • 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 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%
  • 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 number of new possessions totalled 11,800, a decrease of 15% on last quarter and the lowest figure since Q2 2008

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