Thursday, Mar 12, 2009
What happened to my green shoots?
BBC News: Mortgage lending slump continues
Mortgage lending continued to fall in January, according to the Council of Mortgage Lenders.
Just 23,400 mortgages were completed for all house buyers, a new record low, with only 8,900 first-time buyers able to take out home loans.
The number of mortgages lent was down by 28% from December from last month, and 52% lower than a year ago.
The CML said the recession and falling house prices were forcing lenders to ration their lending even more.
Posted by little professor @ 10:38 AM (801 views) Add Comment
9 Comments
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1. str 2007 said...
Wow are these the same figures that ticked up in December to about 30,000 from about 27,000 in November ?
That is very significant I'd say for January.
I would say I saw an uplift in sales in February, it'll be interesting to see what the February figures are.
This survey is almost 6 weeks behind the figures, surprised it takes more than 2 week to collate the data.
Do we know if these are for actual signed off mortgages or mortgage approvals ?
And I take it this is for new mortgages not re-mortgages ?
2. Indirectapproach said...
Mr CML highlights a lack of supply:
"January and February are usually the quietest months in the mortgage market," said Michael Coogan, the CML's director general.
"The current withdrawal of many specialist, small and foreign lenders from new lending has created a huge gap in the capacity to fund mortgages to match consumer demand and this is continuing in 2009," he added.
I suspect there is a lack of demand too.
How many people want to catch a falling knife?
3. Indirectapproach said...
Mr CML highlights a lack of supply:
"January and February are usually the quietest months in the mortgage market," said Michael Coogan, the CML's director general.
"The current withdrawal of many specialist, small and foreign lenders from new lending has created a huge gap in the capacity to fund mortgages to match consumer demand and this is continuing in 2009," he added.
I suspect there is a lack of demand too.
How many people want to catch a falling knife?
4. little professor said...
Lots of questions STR....
Yes, these are completed mortgages rather than applications or approvals.
The 23,400 figure refers to all mortgages for house purchases made in January - that includes both FTB purchases and those moving house. This was down 28% from December and down 52% from January 2008.
In terms of remortgaging loans, 44,000 remortgage loans were made in January, up 8% from January but down 50% from a year ago.
5. Jeremy said...
Minor gripe but why say "only 8,900 first-time buyers **able to** take out home loans" ?
Perhaps only 8,900 were stupid enough to try?
6. Nevanson said...
"The CML's figures reveal that moving house has become the prerogative of the middle aged."
More lies, lies, lies. If you rent a house then moving is trivial. Morons.
7. paul said...
The average first time buyer is still 29, in line with their average age over the past four years, but in the past two years their numbers have shrunk by two thirds.
This is the BBC's thinly veiled warning to FTBs to hurry up and buy. Other sources have said that the average age of FTBs is much higher - around 35 years.
8. str 2007 said...
Thanks LP
Looks as though people are getting the message despit low interest rates. In fact the ridiculaously low interest rates are almost like a bill board advert saying 'DON'T BUY TROUBLE AHEAD'.
They'd have been better to keep interest rates up, at least the savers would have been able to keep spending with REAL money.
9. Dave - Gift Wrapped Mortgages said...
I would say a clearer picture will be around May when deals are completing after the traditional Easter pick up. But I wouldn't hold your breath for a turn around.