Tuesday, Aug 24, 2010
Bear food
BBC: Subdued mortgage market continues say banks
The mortgage market continued its summer slide with a fall in the number of new home loans approved by High Street banks. There were 33,698 mortgages approved for house purchases in July, down by 877 from the previous month, the British Bankers' Association said. This was the second monthly fall in a row, and compared with the high of 45,415 home loan approvals in December.
Posted by mark wadsworth @ 10:20 AM (878 views) Add Comment
4 Comments
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1. Crunchy said...
'Gross mortgage lending remains stable, although demand for mortgages continues to be subdued. The greater availability of properties for sale and slowing house price growth have not yet fed through to increased house purchase approvals," said BBA statistics director David Dooks.'
Count the contradictions. :)
2. jack c said...
Interesting that the FT reported as follows
"Bank lending quadruples in July"
The annual growth in the banks’ net mortgage lending was 4.1 per cent in July, substantially ahead of the 0.9 per cent recorded in June.
The gross mortgage lending of £8.4bn in July was slightly below the average of the previous six months, data from monthly statistics published by the British Bankers’ Association (BBA) has shown.
High street banks continued to see strong mortgage repayments. Net mortgage lending increased by £2bn in July compared with £2.1bn in June and £2.2bn 12 months ago.
Although the removal of home information packs (Hips) has been blamed for more supply on the sales market, the BBA said this has not impacted on the number of house purchase approvals.
The average value of house purchase approvals fell slightly in July but was still some 4.6 per cent higher than a year ago.
David Dooks, statistics director at the BBA, said that gross mortgage lending remained stable, although demand for mortgages continues to be subdued.
He said: "The greater availability of properties for sale and slowing house price growth have not yet fed through to increased house purchase approvals.
"Consumer credit outstanding continues to reflect high repayments together with pressure on household finances and job uncertainty while companies are tending to retrench and reduce their bank borrowing."
SOURCE www.ftadviser.com/FTAdviser/Mortgages/News/article/20100824/91e11648-af5c-11df-8d28-00144f2af8e8/Banks-lend-four-times-more-in-July-than-in-June.jsp
3. mark wadsworth said...
From the BBC in January 2008:
"CML figures showed gross lending reached £362bn in 2007, up 5% from £345bn in 2006, and above its forecast."
Which averages out at over £30 billion a month (not seasonally adjusted) and now we're down to £8.4 billion in what is surely usually a peak month. Somebody here observed that there was a cut-off - if mortgage lending is above a certain amount, prices go up and if it is below that, porices go down. I can't remember what the cut-off was, but it was certainly a lot higher than £8.4 billion per month.
4. timmy t said...
That'll be down to the weather being overcast with sunny spells and a risk of showers. You can't go househunting if you don't know what to wear.