Thursday, Oct 16, 2008

WTF - too much demand - they really are just making this up

WTF: Tracker mortgage 'battle' starts

Great journalism - return lending to 1997 levels. Really wish they'd learn that numbers do actually mean something.

Posted by phdinbubbles @ 12:49 PM (469 views) Add Comment

8 Comments

1. Andrea said...

I though the WTF there stood for what the f***.

It should.

Thursday, October 16, 2008 12:55PM Report Comment
 

2. Jj said...

So what does 10 years difference make , shouldn't 1997 read 2007. Great Reporting yet again from the BBC

Thursday, October 16, 2008 01:01PM Report Comment
 

3. sneaker said...

To get lending back to 2007 levels also requires the desire to borrow returning to 2007 levels.

Anyone reckon that's going to happen?

Thursday, October 16, 2008 01:16PM Report Comment
 

4. phdinbubbles said...

They must have had two new borrowers through their doors as opposed to the one they had last month.

Thursday, October 16, 2008 01:36PM Report Comment
 

5. beartil2010 said...

To clarify: they are not making this up. Demand really is high for mortgages in this instance. The volume of mortgages has been drastically cut, and the prices have gone up. Where a bank has passed on the 0.5% rate cut to their customers - as Lloyds have - they are relatively cheaper and everyone who is trying to remortgage, crushed under the extra weight of payments, is try ing to get that mortgage.

Hence the bank decides to up the rate to the level of the banks that didn't pass on the rate cut!

Forcing banks to lend at 2007 levels will, as I've said a couple of times, simply bankrupt those banks that are not government backed now, and screw the remaining banks for later by recreating a bubble. And it still won't stop the recession. Glad to see it in action already!

Thursday, October 16, 2008 01:38PM Report Comment
 

6. Phdinbubbles said...

My argument makes sense in relative terms. Is demand really that high from new borrowers compared to the mean for the last 20 years? No. It's the way it is spun that annoys - are first time borrowers were clamouring over themselves to get mortgages. Is this really true?

Thursday, October 16, 2008 01:51PM Report Comment
 

7. phdinbubbles said...

My argument makes sense in relative terms. Is demand really that high from new borrowers compared to the mean for the last 20 years? No. It's the way it is spun that annoys - are first time borrowers were clamouring over themselves to get mortgages? Is this really true?
Using the phrase "high demand" on its own is misleading as it is an absolute term of reference.

Thursday, October 16, 2008 01:53PM Report Comment
 

8. beartil2010 said...

Of the overall demand is low, that's for sure. You've got to wonder who edits these news items.

Thursday, October 16, 2008 06:31PM Report Comment
 

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