The total number of loan accounts in arrears has been steadily increasing since early 2007, the latest FSA mortgage lending data shows.
The regulator says the proportion of the residential loan book in arrears, and hence not fully performing, rose to 2.92% at end Q3 2008, up 0.37% in the quarter and 0.79% on a year earlier.
The number of new possessions has also grown significantly since Q3 2007, with 13,161 new cases in Q3 2008 - 92% higher than a year earlier.
According to the FSA, the total value of outstanding loans in Q3 2008 was £1,194bn, an increase of 5% compared to a year earlier. But quarterly growth continues to slow, it adds, with a Q3 2008 increase of just 0.5% on Q2 2008.
New lending peaked in Q3 2007 at £102bn before declining to £61bn in Q3 2008, leaving gross lending 15% lower in the quarter, and 41% lower than a year earlier.IFAonline
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