The total value of outstanding loans is now £1,209bn, little changed from last quarter. New advances in the quarter totalled £36bn, 14% higher than in Q1,and 8% higher than the amount advanced in Q2 2009.
New commitments totalled £41bn, 20% up on the previous quarter. The share of lending for house purchase recovered from the dip last quarter, to account for 61% of new advances and 63% of new commitments in Q2.
The proportion of new lending done at an LTV of more than 90% accounted for just over 2% of new advances. New lending with a combination of high LTVs and high income multiples rose slightly and accounted for just over 1% of new lending in Q2.
The proportion of loans to borrowers with an impaired credit history has been unchanged for the past year and now stands at 0.33%. The number of new arrears cases has been on a downward trend for the past six quarters, with a further reduction in the number in Q2 to 37,200 (-8%).
The total number of accounts in arrears has also continued to fall, for the fourth successive quarter, with a decrease of 3% in the latest quarter to 351,000. Consequently, the proportion of the residential loan book that is in arrears, and hence not fully performing, also fell and now stands at 3.11%.
The number of new possessions in the quarter continued to decline, decreasing by 5% to 10,000, the lowest figure for over two years.
