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cashinmattress

16,000 Are Being Refused A Mortgage Each Month

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16,000 are being refused a mortgage each month

More than 16,000 mortgage applications are being refused every month, Bank of England figures reveal.

In December 12,000 borrowers had their applications turned down but this has jumped to more than 16,000 since March.

The figures emerged as fresh data from the Council of Mortgage Lenders revealed lending fell last month. Gross lending, including new purchases and remortgages, was £10.3bn, 2% lower than in April and 58% down on a year ago.

It is the first time such figures have been released by the Bank and they indicate lenders are increasingly choosy about who they accept.

Richard Morea, from mortgage brokers London & Country, said: 'It's much harder for homeowners to be accepted. We've seen a complete reversal in the way that mortgage lenders do business.

'Where before they were looking at reasons why they should grant you a loan, today they are looking at reasons why they shouldn't.'

According to the CML, it is likely an improvement in new lending has been overshadowed by a slump in remortgaging due to stricter criteria and more attractive variable rates.

CML economist Paul Samter said: 'While recent signs from the housing market have been more encouraging, we do not anticipate a significant recovery in activity in the coming 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.'

And another...

16,000 turned down for a mortgage

Around 15,800 mortgage applications were turned down in May, according to new data from the Bank of England.

The central bank's report in lending found there were 67,000 mortgage applications for home purchases in May, but 23.55 per cent were turned down.

However, since the start of the year acceptance rates have risen from a low in January when three out of ten applications were turned down.

The number of applications from people wanting to buy is also up, as estate agents report greater interest from buyers – although there is a lack of supply of good properties coming onto the market.

The number of mortgage applications for house purchase is up 45.6 per cent since December.

The Bank of England report confirmed data from the Council of Mortgage Lenders (CML) yesterday, that while more interest is coming from buyers, homeowners are remortgaging less.

The Bank put the fall in remortgage lending down to borrowers being happy to fall onto low standard variable rate (SVR) mortgages at the end of fixed deals.

Also falling house prices are eating away at homeowners' equity, meaning they are unable to qualify for more competitive mortgage deals requiring lower loan-to-value levels.

The report also notes a "significant tightening in availability" for credit cards along with weak personal loan lending as lenders see greater risks of defaults on loans.

Ahh, so there it is. Do you need any more proof that HPI was all down to corruption? Without Eric Pebbles 'liar loans' facility, there is a ZERO percent chance of the market return to 'normal'.

These articles clearly illustrate that folks simply cannot afford to buy at current prices unless they LIE about income and commit FRAUD on their application.

The bull will never understand this, and which would conclude that they themselves have little or not morality.

Fraud is illegal.

HPI bulls are idiots.

Edited by cashinmattress

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16,000 are being refused a mortgage each month

Explains why I'm seeing such a high volume of property on RightMove regularly changing from SSTC back to For Sale after a couple of weeks.

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These articles clearly illustrate that folks simply cannot afford to buy at current prices unless they LIE about income and commit FRAUD on their application.

Untrue.

Lots of people can "afford" to buy with interest rates as they are if they look no further down the line than a couple of years and have a decent deposit. However, when rates rise and remortgaging time comes around, ouch.....

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What happens in 9 months time when banks have more to lend?

out of the 16000 who have been rejected...how many would be accepted once lending criteria is relaxed...which it will once banks think the time is right to undo the belt a bit. This shows you that there are people wanting to buy at these levels and once lending come back we will see HPI again....Im still thinking 2007 price levels by 2012.

Edited by Jister1

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What happens in 9 months time when banks have more to lend?

out of the 16000 who have been rejected...how many would be accepted once lending criteria is relaxed...which it will once banks think the time is right to undo the belt a bit. This shows you that there are people wanting to buy at these levels and once lending come back we will see HPI again....Im still thinking 2007 price levels by 2012.

Why will banks have more to lend in 9 months? Can you enlighten everybody as to why this will be the case?

Has someone found some money hidden somewhere?

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What happens in 9 months time when banks have more to lend?

out of the 16000 who have been rejected...how many would be accepted once lending criteria is relaxed...which it will once banks think the time is right to undo the belt a bit. This shows you that there are people wanting to buy at these levels and once lending come back we will see HPI again....Im still thinking 2007 price levels by 2012.

Phew, there you are! London to Manchester and me have been on our own for the last hour or so, I thought we agreed that we would all log on together at 1pm! :angry: Have you heard from Rinoa or Valerius today, they were supposed to help out with the spamming too. Look, I know this trolling lark is taking up a lot of our time but we really need to make sure we are more punctual and stick to our agreements. Luckily, though the Coventry branch is absolutely dead today and Dave has allowed me the rest of the day to keep up the spamming! ;) How are things at your branch today? How's Mike?

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The only way for a FTB [and many others] to "afford" property is to take out a

LIAR LOAN.

Trouble is now..... it's just dawning on banks/moneylenders that THEY will go bust doing this....

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The only way for a FTB [and many others] to "afford" property is to take out a

LIAR LOAN.

Trouble is now..... it's just dawning on banks/moneylenders that THEY will go bust doing this....

Eric on the ball again .........

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Phew, there you are! London to Manchester and me have been on our own for the last hour or so, I thought we agreed that we would all log on together at 1pm! :angry: Have you heard from Rinoa or Valerius today, they were supposed to help out with the spamming too. Look, I know this trolling lark is taking up a lot of our time but we really need to make sure we are more punctual and stick to our agreements. Luckily, though the Coventry branch is absolutely dead today and Dave has allowed me the rest of the day to keep up the spamming! ;) How are things at your branch today? How's Mike?

I think you have found your calling in life. :lol:

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Eric on the ball again .........

Indeed. Liar loans are only sustainable when property is going up.

If the bank is not going to make its money back by foreclosing, it will not lend.

Don't forget the business models of the sub prime lenders were predicated upon defaults and repoes, since there were charges for missing a payment and talking to a debt counsellor, and the Early repayment charges of 6% of the outstanding loan would be taken by the lender on repossession.

If there is no equity when they sell the property, they won't be able to clawback all those charges, especially if the borrower has gone bankrupt...

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Why will banks have more to lend in 9 months? Can you enlighten everybody as to why this will be the case?

Has someone found some money hidden somewhere?

Whats the base rate just now?

whats the swap rate?

whats the percentage of Trackers in the market?

whats the percentage of fixed rates?

Whats you oppinion on the bank hoarding right now......what do you think about all the redundancies and how all the cost cutting is affecting the banks?

By 2012 the banks will be allmost full strength and close to debt free. Then.....by 2015 all this will be a distant memory. The best of it is...you all know this will happen but you have your own agenda.

Have a think about all of the above.....then tell me the banks are not coining it right now?

:P

Edited fao Bobthebastard :)

Edited by Jister1

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Whats the base rate just now?

whats the swap rate?

whats the percentage of Trackers in the market?

whats the percentage of fixed rates?

Whats you oppinion on the bank hoarding right now......what do you think about all the redundancies and how all the cost cutting is affecting the banks?

By 20012 the banks will be allmost full strength and close to debt free. Then.....by 2015 all this will be a distant memory. The best of it is...you all know this will happen but you have your own agenda.

Have a think about all of the above.....then tell me the banks are not coining it right now?

:P

I thought things were bad but jesus 20012?

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Whats the base rate just now?

whats the swap rate?

whats the percentage of Trackers in the market?

whats the percentage of fixed rates?

Whats you oppinion on the bank hoarding right now......what do you think about all the redundancies and how all the cost cutting is affecting the banks?

By 20012 the banks will be allmost full strength and close to debt free. Then.....by 2015 all this will be a distant memory. The best of it is...you all know this will happen but you have your own agenda.

Have a think about all of the above.....then tell me the banks are not coining it right now?

:P

You got that right.

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By 2012 the banks will be allmost full strength and close to debt free. Then.....by 2015 all this will be a distant memory. The best of it is...you all know this will happen but you have your own agenda.

Have a think about all of the above.....then tell me the banks are not coining it right now?

If this is so -- then the banks should be chased down every avenue, prosecuted - and made to pay MASSIVE fines for all the harm they have done......

Needless to say, it won't happen. :angry:

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If this is so -- then the banks should be chased down every avenue, prosecuted - and made to pay MASSIVE fines for all the harm they have done......

Needless to say, it won't happen. :angry:

So should buy to letter's - what's the difference?

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