The FSA published their latest Mortgage Lending Data Report last week showing that remortgage business accounted for a smaller proportion of new lending in Q2. The report shows that lending was down from 38 per cent in Q1 to 34 per cent in Q2 but this is still above the figures for the same period in 2010.
The value of new lending for remortgages suffered a small decrease from £12.7bn in Q1 to £12.3bn in Q2, again this is still above the figure of £11.1bn reported for Q2 in 2010.
Lending proportions of fixed rate loans increased for the fifth consecutive quarter and now stands at 56 per cent, up from a low of 37 per cent in Q1 2010. However, despite this the total loan book level for fixed rate loans has seen a decreasing percentage of outstanding balances in the last three years, suffering a further drop from 31 per cent in Q1 to below 30 per cent for Q2.
With the current mortgage lending criteria restricting some buyers from even getting a foot in the door, buy to let lending increased for the third consecutive quarter, accounting for 8.9 per cent of lending in Q2, reaching a value of £3.2bn, the biggest quarterly lending figure for over 2 years.
The total of new lending with an LTV in excess of 90 per cent increased slightly but remains below 2 per cent. However, new lending with a combined high LTV and high income multiple remained under 1 per cent of new lending.
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