Tuesday, Aug 11, 2009
Latest mortgage stats from CML
BBC: Large rise in mortgage lending
The number of mortgages taken out in June rose by 23% compared with the previous month, according to lenders. Some 45,000 home loans were granted for house purchases - just 6% lower than the same month the previous year, the Council of Mortgage Lenders (CML) said. The group said the mortgage market had stabilised, although this was far from a return to the housing boom. First-time buyers were still being squeezed, as they required an average deposit of 25% of a home's value.
Posted by jack c @ 09:46 AM (960 views) Add Comment
5 Comments
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1. paranoia blue said...
The deposit probably reflects how much more they expect prices to drop.
2. jack c said...
Picking up on paranoia blue's point "The deposit probably reflects how much more they expect prices to drop"
Consumers have seen the average size of a required deposit treble since the start of the banking crisis, with the average loan-to-value (LTV) falling from 91% in August 2007 to 74%. As a result, the average deposit required on a £150,000 mortgage has shot up from £13,500 to £39,000. Reflecting the cautious approach adopted by the UK's banks and building societies, the number mortgages requiring just a 10% deposit have fallen by 10%, while 60% LTV deals have increased by a massive 2244%. "A threefold increase in the size of the average deposit is likely to hit first time buyers the hardest," said Michelle Slade, spokesperson for Moneyfacts Group. "However, buyers on a budget should stick with fixed rate deals."
SOURCE www.emoneyfacts.co.uk/news/news-search.aspx?newsarticleid=188226
3. 51ck-6-51x said...
"realistic selling prices":
do they mean realistic asking prices - if so I have not seen them; or
do they mean realistic transaction prices - well that is subjective hence any transaction price is realistic ( since this price is agreed upon by the two parties. )
What do they mean by this?
4. 51ck-6-51x said...
I think that there were those that wanted to move or buy, but until recently have not been able to secure a favourable mortgage - this is the pent up demand that was mentioned during phase 1 of the crash - will we have a phase 2; probably.
5. tyrellcorporation said...
The market has stalled in Exeter after a rip-roaring Spring bounce. There are still ludicrous asking prices everywhere but I see no sales. It's down, down, down from now IMO.