Friday, Sep 10, 2010
Latest mortgage activity stats
Mortgagestrategy: Mortgage activity slumps 12%
Mortgage activity dropped by 12% in August as funding issues and fears over a double dip recession continue, says the National Mortgage Index. The average purchase loan size fell by 7.3% to just £129,270. And there was a big rise in London residents choosing fixed rate deals. Purchase mortgage applications fell by 10.8% and remortgage applications collapsed by a whopping 15.3%.
Posted by jack c @ 02:58 PM (1055 views) Add Comment
6 Comments
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1. sibley's b'stard child said...
"August saw 41.5% of applicants choosing a variable rate mortgage compared to 38.8% in July".
I do wonder if the public really believe that IRs will be low ad infinitum; I can see the this trend biting a lot of people on the aris'.
If anyone fancies some light comedic relief; click on the 'Fighting for our Industry' petition icon to the right of their webpage; and I quote:
"The FSA's Mortgage Market Review paper on responsible lending threatens the future of the mortgage broker market."
Ha ha ha - and just for good measure - ha hah.
2. jack c said...
On the same theme this from today's FT (note the last 2 paragraphs)
London bucks regions with mortgage activity increase
Story by: Donia O'Loughlin Friday , September 10, 2010
Buyer concern over the state of the economy and fears over house prices helped push mortgage activity down 12 per cent regionally during August. But London continued to buck the trend, data from the national mortgage index by the Mortgage Advice Bureau and Coreco Group has shown.
Regionally, purchase mortgage applications dropped by almost 11 per cent and remortgage applications fell by 15.3 per cent month on month.
In London there was an increase in purchase mortgage for the fifth month in a row, there, activity rose 9.2 per cent.
The North of England fared the worst with a 23.6 per cent fall in applications in August compared to July.
The North West saw a jump of 9.4 per cent in mortgage applications in August compared to the previous month, according to the independent mortgage brokers.
The average loan to value (LTV) on purchase mortgages slowed slightly from a six-month high of 71 per cent in July to 70 per cent in August.
The average loan size for purchases dropped 7.3 per cent from £139,404 in July to £129,270 in August.
In London, the average LTV dropped 2 per cent to 66.4 per cent from July to August. A year ago this figure was 73.6 per cent.
The average loan size in August was £249,728, 11.3 per cent lower than in the previous month but 6.6 per cent higher than 12 months ago.
Brian Murphy, head of lending at the Mortgage Advice Bureau, believes the mortgage market picture will be clearer next month after the Coalition Government announces its spending review.
He said: "Many prospective buyers are likely to wait until the details of the review are published before they make a decision on whether to burden themselves with more debt.
"On a more positive note, there are some very competitive mortgage rates out there at the moment and it’s very much a buyers' market, so anyone who is in a position to buy should seriously considering purchasing while the market is working in their favour."
3. sibley's b'stard child said...
"On a more positive note, there are some very competitive mortgage rates out there at the moment and it’s very much a buyers' market, so anyone who is in a position to buy should seriously considering purchasing while the market is working in their favour."
In other news; butchers claim that there's never been a better time to buy meat.
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