View more on these topics

FSA shows lending down 48%, repossessions up 68%

New mortgage lending has fallen 48 per cent in the year to Q4 2008, while the number of repossessions shot up 68 per cent.

According to figures released by the FSA today, gross lending in Q4 last year fell 26 per cent to £45bn, compared to £60.6bn in Q3.

New repossessions for 2008 skyrocketed 68 per cent from 27,900 in 2007 to 46,750 in 2008. Repossessions in Q4 2008 were 60 per cent higher than a year earlier at 13,028, but actually fell from 13,464 in Q3.

The FSA says the total value of outstanding loans is £1,200bn, an increase of 3.5 per cent compared to 2007, but quarterly growth continues to slow, with a Q4 2008 increase of just 0.25 per cent.

Q3 2008 saw a sharp increase in arrears cases of 10 per cent to 60,000 cases, while Q4 shows an increase of 13 per cent to 68,000 cases. Previously the number of new arrears cases had remained constant at around 54,000 each quarter since early 2007.

Building Societies Association head of mortgage policy Paul Broadhead says borrowers with building society mortgages can be confident that their lender will help them if they have repayment difficulties.

He says: “Every repossession represents an individual tragedy, but borrowers with building society mortgages can be confident that their lender will, if they contact their lender as soon as possible, develop an individual plan to help them get back on their feet.

“This may include rescheduling their mortgage, help with claiming Government benefits and working with other agencies that may be able to help them.”


Pearl considers debt restructure

Hugh Osmond’s Pearl Group is reportedly holding talks with banks in a bid to restructure £3bn of debts.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm