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alabala

Mortgage Lending Falls To Lowest Level Since 2001

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http://www.ftadviser.com/FinancialAdviser/...-since-2001.jsp

Gross mortgage lending declined a further 11 per cent in December, making it the lowest monthly figure since April 2001, according to the Council of Mortgage Lenders (CML).

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Lending reached an estimated £12.6bn last month, down from £14.2bn in November. This is 47 per cent lower than the same period a year ago, the CML said.

Lending as a whole totalled £256.4bn in 2008, down 30 per cent on £363.7bn in 2007, making it the lowest annual figure since 2002.

The CML said recent mortgage approval figures from the Bank of England indicated lending would decline further in the coming months, so improvements in lending were unlikely to be seen in completion levels until the second half of the year at the earliest.

Michael Coogan, director general of the CML, said: "December is typically a quiet month in the mortgage market, on top of which the market has been constrained by a shortage of funding and reduced demand.

"This week's package of measures to support the financial system and invigorate new lending was an essential and welcome move by government.

"The next challenge is to settle the detailed requirements for each measure, so that they can be used by as wide a range of market participants as possible, and as soon as possible.

"A mortgage market solely funded by a few large banks and building societies would be unlikely to have the capacity to match future consumer borrowing demand, or be as competitive in the long term as the UK market has been before the credit crunch.

"Increasing the range of active lenders and funding capacity in the market overall is a vital next step.

"Further measures targeted at the housing market are likely to be needed to supplement yesterday's welcome intervention to address liquidity and capital concerns."

Edited by alabala

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so, the banks are still lending, 250bn it appears, just not as much.

from what i read everyday, they arent lending at all!!

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so, the banks are still lending, 250bn it appears, just not as much.

from what i read everyday, they arent lending at all!!

Maybe Gordon should change his spin to "The banks are lending more than they did under the Tories! Don't let the Tories back in!"

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so, the banks are still lending, 250bn it appears, just not as much.

from what i read everyday, they arent lending at all!!

This is Gross lending though, and I think Conv Lurker threw some cold water on these figures, but can't remember why, maybe they exclude redmeptions and thus also exclude the paying off of the old mortgage when you re-mortgage. This is complete conjecture on my part though

The Net Lending figures are the crucial ones and I tihnk even the CML expect them to go negative soon.

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2001 would've been fairly NORMAL levels of lending.

Title should be "Mortgage Lending back to 2001's normal lending levels" ;-)

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This is Gross lending though, and I think Conv Lurker threw some cold water on these figures, but can't remember why, maybe they exclude redmeptions and thus also exclude the paying off of the old mortgage when you re-mortgage. This is complete conjecture on my part though

The Net Lending figures are the crucial ones and I tihnk even the CML expect them to go negative soon.

They already are - I think I heard on radio4 the other day that they were -ve in December 08 for the first time in 15 or so years.

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2001 would've been fairly NORMAL levels of lending.

Title should be "Mortgage Lending back to 2001's normal lending levels" ;-)

Hah hah, so, the banks are no longer able to sell mortgage backed securities. Hence, levels of lending have dropped to levels experienced before these MBS were invented in the first place.

Wonder what will happen to house prices................................

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2001 would've been fairly NORMAL levels of lending.

Title should be "Mortgage Lending back to 2001's normal lending levels" ;-)

It's a bullseye!

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Maybe Gordon should change his spin to "The banks are lending more than they did under the Tories! Don't let the Tories back in!"

To be changed again in another 6 months to "The banks are lending more than they did under Lloyd George! Don't let the Liberals back in........"

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Note the comment '..........and reduced demand'.

We keep hearing that they want to 'get lending again', 'make money available'.

There is no demand for this money it will not do anything to reinflate the housing market because there is no f'ing demand for the credit.

Can we just get on with the carnage please and stop giving potential vendors excuses for believing 'it will pick up, I will ride it out' and pointing to 'increases in lending' as evidance of what is just round the corner. People have binged and have no appetite for what Gordon is now trying to serve up.

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Note the comment '..........and reduced demand'.

We keep hearing that they want to 'get lending again', 'make money available'.

There is no demand for this money it will not do anything to reinflate the housing market because there is no f'ing demand for the credit.

Can we just get on with the carnage please and stop giving potential vendors excuses for believing 'it will pick up, I will ride it out' and pointing to 'increases in lending' as evidance of what is just round the corner. People have binged and have no appetite for what Gordon is now trying to serve up.

2001 levels. Sensible lending then. So whats the problem we keep hearing about banks not lending ;)

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There were some particularly bearish comments reported by the Beeb

However, some analysts are sceptical about what impact the government intervention will have.

"With the economic situation deteriorating by the day, the banking system in crisis and consumer confidence at an all time low, it's hard to believe mortgage activity will pick up any time soon, whatever the government does," said Toby Goldblatt of financial adviser search engine Rubii.co.uk.

"Even if banks do start lending more, the question now is will people want to borrow?

"Faced with such uncertainty, the last thing on many people's minds will be moving house."

The latest lending figures were "bloody, bleak and foreboding", said Andrew Montlake of independent mortgage broker Cobalt Capital.

He said that estate agents were reporting more people contacting them or visiting offices, but that this was "neither here nor there if the banks won't lend".

Fair and balanced reporting, don't you think?

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To be changed again in another 6 months to "The banks are lending more than they did under Lloyd George! Don't let the Liberals back in........"

At this rate, it will be more about not letting the Whigs back in!

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Why not move back to 2001 lending levels and house prices?

"Lending totalled £256.4bn last year, compared with £363.7bn in 2007"

256 Billion sounds like a fair amount of dough anyhow.

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So basically Brown is asking the banks to resume RISKY lending?

Yeah the unsustainable type. You know the level that got us into now facing a depression. He's a sharp lad is that Mister Brownturn.

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To be changed again in another 6 months to "The banks are lending more than they did under Lloyd George! Don't let the Liberals back in........"

To be changed again in another 12 months to "The banks are lending more than they did under Romans! Don't let the Romans back in........"

Another record low until next month.

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Note the comment '..........and reduced demand'.

We keep hearing that they want to 'get lending again', 'make money available'.

There is no demand for this money it will not do anything to reinflate the housing market because there is no f'ing demand for the credit.

Can we just get on with the carnage please and stop giving potential vendors excuses for believing 'it will pick up, I will ride it out' and pointing to 'increases in lending' as evidance of what is just round the corner. People have binged and have no appetite for what Gordon is now trying to serve up.

i agree with this and have said before, theres no way id buy a house at todays prices.

even if i could get a mortgage - which i cant.

and if they are lending at rates of 360 bill and 250 bill each year, wtf is the final bill ?

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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