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Mortage Approvals And Lending For Purchase Up In May

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Mortgage approvals by major UK lenders picked up to 45,000 in May, from 42,100 in April, the Bank of Englands Trends in Lending report showed. This is a gain of roughly 6% month on month, and is also an increase year on year versus May 2008 for the first time in the crash.

The report also showed that new lending for house purchases (as opposed to remortgages) increased for the 5th month in a row, and are now higher than any time since (and including) August 2008.

There can now be no doubt that the spring bounce is significant, substantial, and is underpinned by a marked return of buyers to the market, and an increase in the availability of mortgages and funding.

The market fightback continues........ :lol:

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Mortgage approvals by major UK lenders picked up to 45,000 in May, from 42,100 in April, the Bank of Englands Trends in Lending report showed. This is a gain of roughly 6% month on month, and is also an increase year on year versus May 2008 for the first time in the crash.

The report also showed that new lending for house purchases (as opposed to remortgages) increased for the 5th month in a row, and are now higher than any time since (and including) August 2008.

There can now be no doubt that the spring bounce is significant, substantial, and is underpinned by a marked return of buyers to the market, and an increase in the availability of mortgages and funding.

The market fightback continues........ :lol:

Gross lending totalled £10.3bn, which was 2% lower than in April and 58% lower than in May 2008.

The CML said that while lending for home buyers had been rising recently, lending to people changing their mortgage provider had dropped off.

Recent surveys from the Halifax and the Nationwide have suggested the slump in house prices may be tailing off.

But the CML said it was not expecting a significant recovery in sales in the next few months.

"Lending volumes appear to have stabilised at extremely low levels, but the weak labour market and lenders' limited access to funding will constrain activity for some time yet," said CML economist Paul Samter.

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Mortgage approvals by major UK lenders picked up to 45,000 in May, from 42,100 in April, the Bank of Englands Trends in Lending report showed. This is a gain of roughly 6% month on month, and is also an increase year on year versus May 2008 for the first time in the crash.

The report also showed that new lending for house purchases (as opposed to remortgages) increased for the 5th month in a row, and are now higher than any time since (and including) August 2008.

There can now be no doubt that the spring bounce is significant, substantial, and is underpinned by a marked return of buyers to the market, and an increase in the availability of mortgages and funding.

The market fightback continues........ :lol:

you will not sell your over priced house even if you jump on your head every day ...

you are in negative equity and it will stay like that for next 10 years ...

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Gross lending totalled £10.3bn, which was 2% lower than in April and 58% lower than in May 2008.

The CML said that while lending for home buyers had been rising recently, lending to people changing their mortgage provider had dropped off.

More people buying homes as they become cheaper.

People not re-mortgaging as they like the SVR rate they've been moved on to.

When the SVR rises, watch the panic.

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Gross lending totalled £10.3bn, which was 2% lower than in April and 58% lower than in May 2008.

Gross lending includes remortgages. Which does not directly impact house prices.

Lending for purchase is up for the 5th month in a row.

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Gross lending includes remortgages. Which does not directly impact house prices.

Lending for purchase is up for the 5th month in a row.

58% lower than in May 2008

it will take some time to go back to sustain your 2007 prices ...

BTW HSBC mortgage calculator gives me only 3.5 times of my income. In London it will mean 60% crash at least ...

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58% lower than in May 2008

Gross lending is irrelevant to house prices....

Lending for purchase now higher than it was in August 2008.

Mortgage approvals now higher than they were in May 2008.

Both showing strong and sustained growth for many months now.

Nobody is claiming prices will be back to 2007 levels any time soon. But the prospect of further large falls is growing increasingly remote.

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Gross lending is irrelevant to house prices....

Lending for purchase now higher than it was in August 2008.

Mortgage approvals now higher than they were in May 2008.

Both showing strong and sustained growth for many months now.

Nobody is claiming prices will be back to 2007 levels any time soon. But the prospect of further large falls is growing increasingly remote.

no shit.

gosh yeah wow. its all over. may as well go buy a house and do some additional hours then.

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The current rate of mortgage approvals is still just one third of what it was in 2007. It is far too soon to call a small increase over just six months a trend.

Long term fundamentals remain weak with growing unemployment and interest rates expected to rise back to normal rates at some point.

boe_trends_in_lending_mortgage_approvals.JPG

post-21200-1245396867_thumb.jpg

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There can now be no doubt that the spring bounce is significant, substantial, and is underpinned by a marked return of buyers to the market, and an increase in the availability of mortgages and funding.

The market fightback continues........ :lol:

:rolleyes:

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Gross lending is irrelevant to house prices....

Lending for purchase now higher than it was in August 2008.

Mortgage approvals now higher than they were in May 2008.

Both showing strong and sustained growth for many months now.

Nobody is claiming prices will be back to 2007 levels any time soon. But the prospect of further large falls is growing increasingly remote.

Another dead cat bounce of HPI will only prolong the agony. Until we return to sensible multiples of earnings for hosues and an economy not based on HPI there will be no long term recovery. Selling over priced houses to each other does not make the country wealthy it just spirals our debt which then goes pop!

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Mortgage approvals by major UK lenders picked up to 45,000 in May, from 42,100 in April, the Bank of Englands Trends in Lending report showed. This is a gain of roughly 6% month on month, and is also an increase year on year versus May 2008 for the first time in the crash.

The report also showed that new lending for house purchases (as opposed to remortgages) increased for the 5th month in a row, and are now higher than any time since (and including) August 2008.

There can now be no doubt that the spring bounce is significant, substantial, and is underpinned by a marked return of buyers to the market, and an increase in the availability of mortgages and funding.

The market fightback continues........ :lol:

http://www.telegraph.co.uk/finance/newsbys...ding-falls.html

CML cautious on house prices as
lending falls
House prices will not see a significant recovery in the coming months, the Council of Mortgage Lenders has warned, as figures show mortgage lending dropped further last month.

"It should not come as a surprise when, in a market that is approaching a dramatic collapse, vested interests publish stories that contradict data from more reliable sources. When those sources are themselves vested interests you have a scenario when those who have the most to lose have entered a new phase of realism."

I have to agree.

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Mortgage approvals by major UK lenders picked up to 45,000 in May, from 42,100 in April, the Bank of Englands Trends in Lending report showed. This is a gain of roughly 6% month on month, and is also an increase year on year versus May 2008 for the first time in the crash.

The report also showed that new lending for house purchases (as opposed to remortgages) increased for the 5th month in a row, and are now higher than any time since (and including) August 2008.

There can now be no doubt that the spring bounce is significant, substantial, and is underpinned by a marked return of buyers to the market, and an increase in the availability of mortgages and funding.

The market fightback continues........ :lol:

The figures for 'new lending for house purchases' also includes those borrowers who have terminated their mortgage and moved to another lender - There is a lot of this happening at the moment as lenders try to capture 'good' new customers and borrowers get a good new fixed rate deal: Most borrowers know that interest rates are going to rocket any day now so they are trying to budget for the next couple of years.

In reality, these figures include hardly any FTB's and those who want to upsize as they are now all but priced out of the market. These transaction figures will plummet next as the source of borrowers changing their lender dries up.

Edited by Neil B

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The figures for 'new lending for house purchases' also includes those borrowers who have terminated their mortgage and moved to another lender - There is a lot of this happening at the moment as lenders try to capture 'good' new customers and borrowers get a good new fixed rate deal: Most borrowers know that interest rates are going to rocket any day now so they are trying to budget for the next couple of years.

In reality, these figures include hardly any FTB's who are now all but priced out of the market. These transaction figures will plummet next as the source of borrows changing their lender dries up.

I don't think it does, unless the punter has been approved by one company for a house purchase and then applies for another mortgage.

What makes me suspicious is the NAEA report comment that talks about accepted offers where the buyer has not put their property on the market yet.

If they don't get the amount they expect, the deal may not go through without either extra cash from somehwere, or some serious price revision further up the chain.

We are seeing some quick completions round our way (cash buyers and no onward chain I assume) but also some have been under offer for quite a while with no sign of the current occupants moving out. Annoying in one case because their dog is a pain in the a$$.

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The figures for 'new lending for house purchases' also includes those borrowers who have terminated their mortgage and moved to another lender - There is a lot of this happening at the moment as lenders try to capture 'good' new customers and borrowers get a good new fixed rate deal: Most borrowers know that interest rates are going to rocket any day now so they are trying to budget for the next couple of years.

In reality, these figures include hardly any FTB's and those who want to upsize as they are now all but priced out of the market. These transaction figures will plummet next as the source of borrowers changing their lender dries up.

No, pretty sure you're wrong there.

Lending for new purchases is just that, lending for purchases.

Swithching lender on the same house is counted as remortgaging, whether its the same lender or a different one.

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I don't think it does, unless the punter has been approved by one company for a house purchase and then applies for another mortgage.

I think it does: I work for a bank and I'm pretty sure that the figures we report for 'New lending' is exactly that - new contracts i.e. a new customer (and therefore a new contract) or an existing customer taking on an additional mortgage (a new contract but existing customer).

"Swithching lender on the same house is counted as remortgaging, whether its the same lender or a different one"

...Not in the eyes of the lender - If we get a new application from a new customer wanting to switch their mortgage to us from a different lender it is treated exactly the same way as if they were buying a new house: Any payments that the customer has made to date on an existing mortgage - we will not see - it has gone to the original lender.

Edited by Neil B

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Guest DissipatedYouthIsValuable

Hamish, as you well know, volume up but loan size down.

If you'd be so good as to point out where the BoE figures suggest this is not so......

Edited by DissipatedYouthIsValuable

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RBS have raised all their rates this morning and I believe others have or are expected to follow suit. Apparently they're pricing in a still to come sooner than expected rise in interest rates. One wonders if they would be as quick to price in a still to come fall?

does anyone else get the impression Banks, Utility companies and BP/Shell/Esso think they can raise prices to whatever they want?

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RBS have raised all their rates this morning and I believe others have or are expected to follow suit. Apparently they're pricing in a still to come sooner than expected rise in interest rates. One wonders if they would be as quick to price in a still to come fall?

does anyone else get the impression Banks, Utility companies and BP/Shell/Esso think they can raise prices to whatever they want?

With Base rates at 0.5%, inflation "unexpectedly" not falling this month, massive QE and massive borrowing you don't have to be Sherlock f*cking Holmes to work out what's going to happen to interest rates soon.

Even Yazz and the Plastic Population know what happens next ;)

It will mean more repos, more distress sales, more misery...

...but falling prices.

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Guest DissipatedYouthIsValuable

I'm waiting, McTavish.

Tell all the boys and girls, using the BoE numbers, why you don't think the average loan value has dropped over 30% YoY.

Show your working out if you can, but for this exercise if you are in the company of a numerate adult, maybe you could ask them to help you.

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