Twitter Facebook RSS FEEDS

Mortgage arrears rise at HBOS

Monday, 3 November 2008 2:19 PM

Mortgage arrears and defaults on unsecured lending at HBOS have risen, with arrears mortgages now representing 1.55 per cent of the total.

Arrears on self-certified mortgages, which represent 12.6 per cent of the lender's total home loans, rose to 3.59 per cent.

The increase in arrears, together with the decline in house prices, has resulted in a £440 million charge for the nine month period to 30 September 30th 2008 - over double the £213 million at June 30th 2008.

The decline in house prices has also impacted the average loan-to-value (LTV) of the bank's mortgages.

The average LTV ratio of HBOS's mortgage book was 52 per cent at the end of September 2008, compared to 48 per cent at June 30th 2008.

Corporate lending has also suffered, particularly in the construction and real estate sectors, HBOS added.

HBOS said its strong brands and leadership position for retail banking will see it through the recent financial turmoil and it will take a more "selective" approach to international and corporate markets.

"While the credit environment will remain challenging, HBOS's robust capital position, to be further enhanced by the injection of capital and liquidity facilitated by the UK government, reinforces the group to meet such challenges," HBOS said in a statement.

Repossessions soared by 71 per cent in the three months to the end of June, according to the Financial Services Authority (FSA).

As more homeowners struggle to pay their mortgage, this figure is expected to rise.

Related stories

Mortgage arrears on the rise

Mortgage arrears on the rise

Mortgage arrears on the rise

 Fewer people in mortgage arrears

Mortgage arrears 'improving, but may not sustain'

Repossessions are down, but the arrears situation may not continue to improve.
Row of terraced houses in London

Rise in mortgage use to buy West End homes

There has been a significant rise in the proportion of people using mortgages to buy properties in London’s West End.

 Buy-to-let arrears rise

Buy-to-let arrears rise

Buy-to-let arrears rise

Belvidere Street in Aberdeen

Scotland sees rise in mortgage lending

Loans to first-time buyers and home movers both up in Scotland, but by less than in UK as a whole.

 property to let

Rent arrears account for 80% of tenant evictions

Enlisting the help of a lettings agent, instead of going it alone, could save landlords a lot of trouble - and money - in the long run.
St Katherine's Dock, London

Mortgage lending 'will rise in near future'

Britain's mortgage market will soon begin moving again, but progress will be steady -which is a good thing, according to one expert.

 Mortgage application

Mortgage rates rise despite lenders' cost savings

The banks have been accused of squeezing their customers when the property market is already suffering and buyer confidence is low.
HBOS drops mortgage brand

HBOS drops mortgage brand

HBOS drops mortgage brand

 New CML figures show small fall in mortgage lending in September but another improvement in affordability.Image: Thinkstock

Mortgage lending dips but payments cheaper

Interest payments as a proportion of income fall again for first-time buyers and stay at record low for home moves.

Search property

Headlines

Directory

Alaris

Alaris Logo
Alaris specialise in quality Bathrooms and Kitchens along with many other unique products for your home. The range of kitchens, kitchen worktops and bathrooms is extensive and the highest quality so you are sure to find what you want. New bathroom furniture, bathroom suites, taps, showers and cabinets are added regularly.

Bathrooms365

Bathrooms365 Logo
Bathroom365 supply all areas of your new bathroom - leading-edge designed bathroom suites, stylish bathroom taps and showers, all styles and forms of shower enclosures and a vast collection of bathroom furniture.

Beds Direct

Beds Direct Logo
Whether you've just moved into a property and need to furnish it or just fancy having something new to sleep on, Beds Direct offer you a wide array of beds to order online or via the telephone.

Fitmykitchen

Fitmykitchen Logo
Fitmykitchen are specialist suppliers of kitchen appliances, sink taps, waste bins and furniture. So whatever you want from kitchen sink taps to waste bins look no further than fitmykitchen, UK, the specialist suppliers of kitchen appliances, stainless steel sink taps, waste bins and kitchen furniture.

MyStampDuty

MyStampDuty Logo
We help people buying property all over the UK to minimise Stamp Duty Land Tax on residential and commercial property. If you are looking at purchasing a new home or business premises over £500,000, contact us today by completing the form on the right

Oak Furniture Land

Oak Furniture Land Logo
For hardwood furniture, including Solid Oak, Mango, Mahogany, Sheesham, Acacia, Ash and Birch, look no further than Oak Furniture Land.

Propertywide

Propertywide Logo
Propertywide.co.uk is Countrywide plc's dedicated property website. Created to provide online access to all our estate agency, lettings and property related services, Propertywide.co.uk has been designed with the consumer at heart.

The 21st Century Radiator Company

The 21st Century Radiator Company Logo
Welcome to 21st Century Radiator Company. We supply a stunning range of traditional reproduction high quality cast-iron radiators and cast-iron baths. All our cast-iron radiators and cast-iron baths are brand new, fully tested and guaranteed for ten years.

Rated People

Rated People Logo
Whatever type of home improvement or garden remodelling project you have, Rated People can help you to identify the right tradesmen for the job in a way that is quick, easy, convenient and, as it is based on real-life recommendations, trustworthy.

Residential Land

Residential Land Logo
If you are looking for short or long term rentals in Central London, Residential Land have a portfolio of over 1200 flats and houses in the best postcodes across the Capital.

Simply Bedrooms

Simply Bedrooms Logo
Simply Bedrooms, a part of Sleepwell Bedrooms Ltd, supplying quality beds, wardrobes, sliding door wardrobes and bedroom furniture at low prices and great service, London and Home Counties Specialists.

Door Handles UK

Door Handles UK Logo
Door Handles UK is the UK's largest online range of Door Handle accessories, Door Hinges, Locks and Latches and so much more and all at genuine internet prices. We have a wide range of Chrome, Brass and Glass Crystal Mortice door knobs in both traditional and contemporary designs, whatever your taste and budget you will find a design to suit.

Woodlands Furniture

Woodlands Furniture Logo
We are an established family business situated in rural Herefordshire specialising in beautiful handcrafted classic reproduction furniture. Our comprehensive ranges are readily available from stock.

Join our directory aboutproperty.co.uk

Twitter

Join the conversation at #aboutproperty

Directory articles

Designer taps can complete the look of your bathroom

When redesigning your bathroom, the first thing you're likely to pay attention to is what suite to choose. However, before you finish redecorating, think about the smaller features; after all, something like which taps you choose can complete your bathroom design.

Great tips for keeping brass door handles in top condition

Having brass door handles in your home can quickly give your place a sense of glamour and finesse. However, it is vital you put in the effort to ensure your brass fittings stay looking good. By following the tips below, you can be confident your handles will always be in peak condition.

What type of storage is best for small kitchens?

If you have a small kitchen you may well look enviously at the space and amount of storage in the country-style rooms that are beloved by property programmes on television. There may not be much you can do about the size of your room, but there are steps you can take to ensure the space is utilised as efficiently as possible.