Lending for house purchases increases, figures show
New figures released by the Financial Services Authority (FSA) into
the state of the mortgage market has found that more than half of
new advances within the sector were made for house purchases in the
third quarter of 2009.
Meanwhile, remortgages accounted for just 34 per cent of lending,
their lowest level since the FSA began publishing its quarterly
reports in 2007.
It also noted that the total value of outstanding loans is one per
cent higher than a year earlier, standing at £1,203
Additionally, the FSA revealed that the number of households that
have fallen into arrears has dropped by two per cent compared with
the second quarter of this year. However, this is still 16 per cent
higher than the same period in 2008.
Michael Coogan, director general of the Council of Mortgage
Lenders, commented: "The FSA data reflects what our numbers have
already portrayed. Arrears and possessions are lower than expected
earlier in the year."