alabala Posted January 21, 2009 Share Posted January 21, 2009 (edited) 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). Advertising 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 January 21, 2009 by alabala Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted January 21, 2009 Share Posted January 21, 2009 so, the banks are still lending, 250bn it appears, just not as much. from what i read everyday, they arent lending at all!! Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted January 21, 2009 Share Posted January 21, 2009 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!" Quote Link to comment Share on other sites More sharing options...
time 2 raise interest rates Posted January 21, 2009 Share Posted January 21, 2009 Seeing as most UK bank shares are now cheaper than a Mars bar i think a pick up in lending may be some way off, about 5 year off. Quote Link to comment Share on other sites More sharing options...
bobthe~ Posted January 21, 2009 Share Posted January 21, 2009 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. Quote Link to comment Share on other sites More sharing options...
time 2 raise interest rates Posted January 21, 2009 Share Posted January 21, 2009 (edited) Down 11% month-on-month, oh dear looks like them green shoots are turning into bean shoots. 2007 363.7bn Edited January 21, 2009 by time 2 raise interest rates Quote Link to comment Share on other sites More sharing options...
OzzMosiz Posted January 21, 2009 Share Posted January 21, 2009 2001 would've been fairly NORMAL levels of lending. Title should be "Mortgage Lending back to 2001's normal lending levels" ;-) Quote Link to comment Share on other sites More sharing options...
bagsos Posted January 21, 2009 Share Posted January 21, 2009 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 thoughThe 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. Quote Link to comment Share on other sites More sharing options...
JonoP Posted January 21, 2009 Share Posted January 21, 2009 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................................ Quote Link to comment Share on other sites More sharing options...
Moo Posted January 21, 2009 Share Posted January 21, 2009 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! Quote Link to comment Share on other sites More sharing options...
Neil D Possitt Posted January 21, 2009 Share Posted January 21, 2009 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........" Quote Link to comment Share on other sites More sharing options...
Godley Posted January 21, 2009 Share Posted January 21, 2009 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. Quote Link to comment Share on other sites More sharing options...
Dr Renter Posted January 21, 2009 Share Posted January 21, 2009 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 Quote Link to comment Share on other sites More sharing options...
redwing Posted January 21, 2009 Share Posted January 21, 2009 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? Quote Link to comment Share on other sites More sharing options...
Jimbo70 Posted January 21, 2009 Share Posted January 21, 2009 So basically Brown is asking the banks to resume RISKY lending? Quote Link to comment Share on other sites More sharing options...
NotMyHouse Posted January 21, 2009 Share Posted January 21, 2009 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! Quote Link to comment Share on other sites More sharing options...
Zzzzzzzzzzzzzzzzzzzzzzzzzz Posted January 21, 2009 Share Posted January 21, 2009 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. Quote Link to comment Share on other sites More sharing options...
DabHand Posted January 21, 2009 Share Posted January 21, 2009 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. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 21, 2009 Share Posted January 21, 2009 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. Quote Link to comment Share on other sites More sharing options...
the-sign-jacker Posted January 21, 2009 Share Posted January 21, 2009 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 ? Quote Link to comment Share on other sites More sharing options...
redwing Posted January 21, 2009 Share Posted January 21, 2009 Never mind the comments. This is today's HPC News. For the evening crew. Bump. Quote Link to comment Share on other sites More sharing options...
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