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Bank of England: Gross lending down 6.8% year-on-year

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Gross mortgage lending in the first quarter was down 6.8 per cent year-on-year, according to figures published today by the Bank of England.

In the first quarter of 2013 lenders advanced £33.9bn, compared with £36.4bn in the first quarter of 2012.

Net lending fell 53.8 per cent, from £2.6bn in Q1 2012 to £1.2bn in Q1 2013. Compared with the fourth quarter of 2012, when net lending was £4.4bn, net lending was down 72 per cent.

The total value of new commitments fell 4.3 per cent year-on-year, falling from £37bn in Q1 2012 to £35.4bn in Q1 2013.

The overall value of outstanding residential loans was £1.2tn in Q1 2013, roughly the same as a year earlier.

The proportion of gross advances which were fixed rates in the first quarter was 70.7 per cent, compared with 55 per cent a year earlier, while the average price of fixed rates fell from 3.99 per cent in the first quarter of 2012 to 3.8 per cent in the first quarter of 2013.

The average price of variable rate loan increased from 2.9 per cent in Q1 2012 to 3.28 per cent in Q1 2013.

House purchases accounted for 63.3 per cent of gross advances in Q1 2013, up from 59.3 per cent a year earlier. Of these, 18.2 per cent were first-time buyers and 12 per cent were buy-to-let transactions.

Remortgage cases accounted for 29.4 per cent of transactions, down from 33.5 per cent a year earlier, while further advances accounted for 3.5 per cent of transactions, down from 3.6 per cent a year earlier.

The proportion of gross advances over 95 per cent loan-to-value was up slightly, from 0.3 per cent in the first quarter of 2012 to 0.5 per cent a year later.

Business between 90 and 95 per cent LTV was down from 2 per cent to 1.6 per cent over the same period, while business between 75 per cent and 90 per cent LTV increased slightly from 29.4 per cent to 30.9 per cent. Business under 75 per cent LTV continued to make up the vast majority of gross advances, although it dipped slightly from 68.2 per cent in Q1 2012 to 67 per cent a year later.

The number of loans in arrears dipped 2.1 per cent from 302,976 in Q1 2012 to 296,363 in Q1 2013.

There were 8,092 new repossessions in the first quarter of 2013, down from 9,531 a year earlier.

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