The UK mortgage market saw a £41bn year-on-year fall for new lending in Q3 2008, according to data compiled from Mortgage Lending Administration Returns provided to the Financial Services Authority.
In Q3 2007 new lending peaked at £102bn but this fell to £61bn in Q3 2008. From Q2 2008 to Q3 2008 new lending fell by a whopping 15%. Loans to borrowers with an impaired credit history represented 1.5% of new lending in Q3 2008, compared to 3.5% a year earlier.
Numbers of new possessions have grown significantly since Q3 2007, with 13,161 new cases in Q3 2008 – 92% higher than a year earlier.
While the number of new arrears cases had stayed constant at around 54,000 each quarter since early 2007, the results for Q3 2008 show an increase of 10% to 60,000 cases. At the end of Q3 2008 there were 340,000 loan accounts in arrears, an increase of 10% since Q2, 2008 and a rise of 24% on a year earlier.