Friday, Apr 09, 2010

Mortgage approvals fall again

Yahoo: Mortgage approvals fall again

The number of mortgages approved for house purchase fell for the third month in a row during February.
*******can anyone tell me how if this is happening, sales are supposed to be increasing?******

Posted by mark @ 11:32 AM (1748 views) Add Comment

15 Comments

1. alan_540 said...

I think it's asking or selling price that's showing an increase mark, but activity is decreasing, as activity drops further hopefully prices will do likewise, but this depends on interest rates rising as well to rattle a few over leveraged cages.

Friday, April 9, 2010 11:36AM Report Comment
 

2. mark wadsworth said...

Maybe cash buyers are increasing to make up the difference?

Friday, April 9, 2010 11:48AM Report Comment
 

3. 51ck-6-51x said...

A bigger proportion of those that were approved over the last few quarters went on to fall through (e.g chain break downs).

Friday, April 9, 2010 12:45PM Report Comment
 

4. 51ck-6-51x said...

^^ Oops - that was meant to be a speculative statement

Friday, April 9, 2010 12:45PM Report Comment
 

5. Andyrich29 said...

Downsizing?

Friday, April 9, 2010 12:56PM Report Comment
 

6. paul said...

There's definitely a good dollop of 'hear no evil, speak no evil' in the media regarding the increasingly obvious link between rising house prices and falling demand. It's almost as if there is surprise bordering on bewilderment that just because prices are said to have risen that fewer people are interested in buying. So much so that this fall in demand is routinely misinterpreted as signifying lack of access to finance. This in turn prompts politicians and our esteemed and capable central bank to bang on tables demanding more financing for buyers while crying crocodile tears and hoping that by repeatedly framing the problem this way and saying it long and loud enough, that everyone will ignore the simple fact that asking prices are still way too high.

Friday, April 9, 2010 01:46PM Report Comment
 

7. jack c said...

I've just taken on a potential mortgage case for a house purchase for a couple where the LTV is 40% and the lenders are asking for all but a colonoscopy on the clients if we are to have any chance of getting it to the decision in principle stage !

Friday, April 9, 2010 02:48PM Report Comment
 

8. 51ck-6-51x said...

jack, wow. LTV = 0.4, but what is loan-to-income, total notional - there must be something causing concern, no?

Friday, April 9, 2010 04:35PM Report Comment
 

9. jack c said...

51ck-6-51x - the income is approx 30k and we are looking to raise around 95K with a clean 'high' credit score - a decent 5 yr fix comes in at roughly 530/month.

To quote my colleague who transacts a lot of mortgages - "the lenders are playing funny bugg**s again"

Friday, April 9, 2010 04:44PM Report Comment
 

10. 51ck-6-51x said...

jack, odd. Maybe it's just because it's the Easter holidays and the person who usually does the job is away!

Friday, April 9, 2010 05:33PM Report Comment
 

11. Property Babe said...

These are February figures. We already know that prices fell in February and bounced back in March. No crystal ball needed.

Friday, April 9, 2010 06:29PM Report Comment
 

12. markj69 str05 said...

Maybe the lenders just do not have any money to lend?

Friday, April 9, 2010 07:21PM Report Comment
 

13. Alfie said...

*******can anyone tell me how if this is happening, sales are supposed to be increasing?******

Its called fiddling the stats, lying, deceiving the general public for personal gains.

Makes me sick, but it will all come out soon enough.

Friday, April 9, 2010 08:45PM Report Comment
 

14. Leipe Eddy said...

There is approximately a six month delay between changes in mortgage approvals and sales, so this suggests that ~ 3 months (6 months minus the 3 months of declining approvals) from now the sales will drop. See http://www.houseprices.uk.net/articles/house_price_predictor/

Saturday, April 10, 2010 10:03AM Report Comment
 

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