Lending at five-year high in the third quarter!

Mortgage lenders advanced more money in the third quarter than they have in any other quarter for five years, according to figures released today by the FCA. Gross advances of £49.5bn were recorded in Q3 2013 – the highest total since Q3 2008 – up 25% on the £41.6bn advanced in the same period last year.

The value of residential loan amounts outstanding rose 0.3% between Q2 and Q3, reaching £1.2bn – a jump of 0.5% from the same time period last year. Net lending was up 29% year-on-year in the third quarter, from £5.1bn in Q3 2012 to £7.2bn in the third quarter of this year.

First-time buyers accounted for a fifth of gross advances in Q3, with a total of £9.9bn advanced, while buy-to-let customers borrowed a total of £5.9bn or 12% of gross advances. The figures show just 0.45% – £2.2bn – of gross lending was advanced to borrowers with a deposit of five per cent, compared with 0.41% in Q3 2012.

Capital Economics chief property economist Ed Stansfield says: ”Six months after the launch of Help to Buy, detailed mortgage lending statistics show little evidence of a rise in the share of new mortgages being advanced on the basis of a 5% deposit.”

The volume of new repossession cases in the third quarter of 2013 dropped 14% in a year to 7,349. New arrears cases also fell in both volume and value in the third quarter this year.

The number of new arrears cases dropped 7.9% to 29,900 – the lowest level since the FCA began recording figures in 2007. The value of new arrears cases fell 18% from Q3 2012 to £56m. The percentage of total loans outstanding currently in arrears dropped to 1.97% in the third quarter, compared with 2.06 in Q2.