Repossessions rise by 71%

The FSA has revealed that repossessions, where the house has been successful sold by the lender, have rocketed by 71 per cent in Q2 2008, to 11,054 cases.

According to its latest Mortgage Lending and Administration Return report into mortgage lending in the UK over the second quarter of 2008, there are 312,000 in arrears in the UK, a rise of 16 per cent on 2007 figures.
On average 2.58 per cent of mortgage books are not fully performing, almost double the Council of Mortgage Lenders’ industry average of arrears.

The FSA says that 312,000 mortgages are in arrears of more than 1.5 per cent. It says this figure can be reasonably transposed to equate to three months of arrears.

The report found that the stock of possessions in the UK has also soared to 21,407 cases.

The total value of outstanding loans is £1,178bn, an increase of 7.5 per cent compared to Q2 2007. But quarterly growth continues to slow, with a Q2 increase of just 1 per cent.

The FSA says new lending peaked in Q3 2007 last year at £102bn before declining to £72bn in Q2, leaving gross lending 26% lower than a year earlier.

It also found that significantly fewer new loans have an LTV of more than 90 per cent, reducing from a peak of 15 per cent of new lending in early 2007 to 10 per cent in 2008 Q1 and Q2. The use of combinations of high LTVs and high income multiples has also declined to 7 per cent of new lending in each of Q1 and Q2.

This entry was posted on 29/10/2008 at 10:22 am and is filed under Debt. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.

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