Net mortgage lending falls to lowest level since 2009
Share
The level of net mortgage lending between October and December fell to its lowest level since the beginning of 2009, FSA figures reveal.
The FSA has published its latest Mortgage Lending Data for the UK for Q4 2010.
It shows that net advances, or gross lending less borrower repayments, has fallen 57 per cent since Q4 2009 from £7.9bn to £3.4bn.
Gross lending, or the amount of new loans to borrowers, has dropped 11 per cent during the year from £41.2bn in Q4 2009 to £36.8bn for the same period last year.
Over 2010 as a whole £146bn was lent in gross advances, compared to £148bn in 2009.
The proportion of lending for house purchase has fallen from 64 per cent in Q3 to 61 per cent at the end of last year.
The value of gross lending for house purchase has fallen 13 per cent from £25.6bn in Q4 2009 to £22.3bn, £6bn of which was lent to first-time buyers.
The proportion of lending to first-time buyers has remained relatively flat at 16 per cent.
New lending for buy-to-let was the highest since Q3 2008 at 7.6 per cent of overall residential lending. The £2.8bn value of buy-to-let lending was the highest since the end of 2008.
The number of new arrears cases between October and December increased 6 per cent to 38,800 from 36,600 for the previous three months.
This is the first quarter new arrears cases have risen since the start of 2009.
However the level of arrears cases remains below the 40,900 cases seen in Q4 2009.
The number of new repossession cases has been falling for the last two years.
In Q4 there were 8,246 repossessions, 10 per cent lower than in Q3. Overall last year In there were 37,819 repossessions, compared with 52,963 in 2009.
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
