LondonToManchester Posted June 23, 2009 Share Posted June 23, 2009 (edited) Mortgage lending by the UK's major banks has returned to levels seen early last year, figures show. The number of approvals for house purchases rose to 31,162 in May, up 15.8% compared with the same month a year ago. But the British Bankers' Association (BBA) data also shows that borrowing on credit cards has dropped owing to householders' economic uncertainty. Various lenders have raised the cost of fixed-rate mortgages in recent days. http://news.bbc.co.uk/1/hi/business/8114414.stm Back to 2007 soon? Oh and credit card lending is falling! Edited June 23, 2009 by LondonToManchester Quote Link to comment Share on other sites More sharing options...
pete.hpc Posted June 23, 2009 Share Posted June 23, 2009 Mortgage lending by the UK's major banks has returned to levels seen early last year Ah those halcyon days of early 2008 Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted June 23, 2009 Share Posted June 23, 2009 We will only get back to 2007 levels of lending if they print. However in doing that they will unleash inflation. It's possible that the current level of lending is what would be deemed "normal", although I think we will see another dip shortly. Quote Link to comment Share on other sites More sharing options...
boo Posted June 23, 2009 Share Posted June 23, 2009 (edited) Number of approvals may be up but amount being lent is down. So its either those with big deposits (which will run out soon) or people are borrowing less because prices are falling Edited June 23, 2009 by boo Quote Link to comment Share on other sites More sharing options...
3 Men In A Boat Posted June 23, 2009 Share Posted June 23, 2009 Quote Link to comment Share on other sites More sharing options...
Lepista Posted June 23, 2009 Share Posted June 23, 2009 Mortgage lending by the UK's major banks has returned to levels seen early last year, figures show.The number of approvals for house purchases rose to 31,162 in May, up 15.8% compared with the same month a year ago. But the British Bankers' Association (BBA) data also shows that borrowing on credit cards has dropped owing to householders' economic uncertainty. Various lenders have raised the cost of fixed-rate mortgages in recent days. http://news.bbc.co.uk/1/hi/business/8114414.stm Back to 2007 soon? Oh and credit card lending is falling! As irrelevant as a ripple on a tidal wave Quote Link to comment Share on other sites More sharing options...
mbga9pgf Posted June 23, 2009 Share Posted June 23, 2009 We will only get back to 2007 levels of lending if they print.However in doing that they will unleash inflation. It's possible that the current level of lending is what would be deemed "normal", although I think we will see another dip shortly. LTM, want to mention how much las been lent compared to last month? Quote Link to comment Share on other sites More sharing options...
LondonToManchester Posted June 23, 2009 Author Share Posted June 23, 2009 We will only get back to 2007 levels of lending if they print.However in doing that they will unleash inflation. It's possible that the current level of lending is what would be deemed "normal", although I think we will see another dip shortly. Other than food where is the inflation? We were told TV's and stuff were going to become more expensive! Other than Sony this does not appear to be the case. Quote Link to comment Share on other sites More sharing options...
spivT Posted June 23, 2009 Share Posted June 23, 2009 Other than food where is the inflation? if your calling deflation or weak inflation expectations why should there be inflation in property prices ? Quote Link to comment Share on other sites More sharing options...
Moo Posted June 23, 2009 Share Posted June 23, 2009 Number of approvals may be up but amount being lent is down. So its either those with big deposits (which will run out soon) or people are borrowing less because prices are falling Given that the lenders are asking for big deposits, I'd go with the former. Quote Link to comment Share on other sites More sharing options...
LondonToManchester Posted June 23, 2009 Author Share Posted June 23, 2009 if your calling deflation or weak inflation expectations why should there be inflation in property prices ? I'm not I honestly have no idea whats going to happen in the future. But I do think the housing market is bottomed! At the present time I'm not seeing any inflation other than food. Quote Link to comment Share on other sites More sharing options...
Charlie Don't Surf Posted June 23, 2009 Share Posted June 23, 2009 if your calling deflation or weak inflation expectations why should there be inflation in property prices ? Come on, lets not trick the bulls into tying themselves in knots. I know it's tempting and often a little too easy! Quote Link to comment Share on other sites More sharing options...
Guest theboltonfury Posted June 23, 2009 Share Posted June 23, 2009 Other than food where is the inflation?We were told TV's and stuff were going to become more expensive! Other than Sony this does not appear to be the case. Brilliant, Cos none of us eat do we? Quote Link to comment Share on other sites More sharing options...
justwatching Posted June 23, 2009 Share Posted June 23, 2009 Mortgage lending by the UK's major banks has returned to levels seen early last year, figures show.The number of approvals for house purchases rose to 31,162 in May, up 15.8% compared with the same month a year ago. But the British Bankers' Association (BBA) data also shows that borrowing on credit cards has dropped owing to householders' economic uncertainty. Various lenders have raised the cost of fixed-rate mortgages in recent days. http://news.bbc.co.uk/1/hi/business/8114414.stm Back to 2007 soon? Oh and credit card lending is falling! spin it, & spin it some more remortgaging & equity withdrawal have fallen off a cliff (possibly cause no equity left to withdraw). What will this do for the sales of plasma TVs? sept 1997-feb 2008. Not one month with a number of approvals lower than 40000 . So the number of approvals this month are LOWER than any month during the 10 1/2 year period above. WOW! Now for a bit more negative spin. This months approvals are; 50 % DOWN FROM MAY 07 52% DOWN FROM MAY 06 47% DOWN FROM MAY 05 61% DOWN FROM MAY 04 Nothing to see here, move along please, all will be OK, expensive houses make us richer. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted June 23, 2009 Share Posted June 23, 2009 But I do think the housing market is bottomed! Quote Link to comment Share on other sites More sharing options...
boo Posted June 23, 2009 Share Posted June 23, 2009 Given that the lenders are asking for big deposits, I'd go with the former. So potentially then we will see more "rises" in prices from halifax/nationwide over the next few months until those with big deposits dry up. Still looks like we will get the latter in the long run (unless the bank start changing their criteria) Quote Link to comment Share on other sites More sharing options...
Dr Renter Posted June 23, 2009 Share Posted June 23, 2009 Other than food where is the inflation?We were told TV's and stuff were going to become more expensive! Other than Sony this does not appear to be the case. How often do you buy a TV? How often do you eat? The price of TVs is irrelevant to the cost of day to day living. Food is by far the most important. This is why the basket of goods they use to calculate RPI is b0ll0x. You are quite clearly a product of Browns Britain and I pity you. Quote Link to comment Share on other sites More sharing options...
mbga9pgf Posted June 23, 2009 Share Posted June 23, 2009 LTM, RE inflation, so, where is the money coming for to pay for high mortgage costs if other living costs are going to go up? You cant have an increase in essential commodity costs without it kicking the life out of equity prices. In this case house values. Quote Link to comment Share on other sites More sharing options...
Timm Posted June 23, 2009 Share Posted June 23, 2009 spin it, & spin it some moreremortgaging & equity withdrawal have fallen off a cliff (possibly cause no equity left to withdraw). What will this do for the sales of plasma TVs? sept 1997-feb 2008. Not one month with a number of approvals lower than 40000 . So the number of approvals this month are LOWER than any month during the 10 1/2 year period above. WOW! Now for a bit more negative spin. This months approvals are; 50 % DOWN FROM MAY 07 52% DOWN FROM MAY 06 47% DOWN FROM MAY 05 61% DOWN FROM MAY 04 Nothing to see here, move along please, all will be OK, expensive houses make us richer. It would be good to see this in graph form if anyone has it. I wonder if it would look anything like the graph of actual transactions on FreeTrader's thread Here. Quote Link to comment Share on other sites More sharing options...
shedfish Posted June 23, 2009 Share Posted June 23, 2009 Net new mortgage lending, of £2.3bn in May, was again at its lowest level since March 2001, having fallen from £2.5bn in April. http://news.bbc.co.uk/1/hi/business/8114414.stm see also Gross lending totalled £10.3bn, which was 2% lower than in April and 58% lower than in May 2008. http://news.bbc.co.uk/1/hi/business/8107576.stm if that was the spring bounce... Quote Link to comment Share on other sites More sharing options...
justwatching Posted June 23, 2009 Share Posted June 23, 2009 It would be good to see this in graph form if anyone has it. I wonder if it would look anything like the graph of actual transactions on FreeTrader's thread Here. nice graph, would be even better if the time axis went back to 97. Then, just maybe, LTM, rhinoalittle et al could see how much doo doo the housing market is still in. Bottom my ****. Quote Link to comment Share on other sites More sharing options...
Icantbelieveitsnotbutter Posted June 23, 2009 Share Posted June 23, 2009 I'm not I honestly have no idea whats going to happen in the future. But I do think the housing market is bottomed!At the present time I'm not seeing any inflation other than food. ...er, and perhaps petrol... ...and perhaps council tax... ...in fact tax... ...cars... ...train fares... ...car parking charges at train stations... Excess supply drives prices down. Capacity gets cut, demand picks up, prices rise. As for housing, the bull market rally is faltering now. There is no magic tap of funding to turn back on, the banks might now have enough capital from the point of view of capital ratios, but they are still tight for liquidity, and Govt borrowing is beginning to crowd out private sector lending. Come the Autumn the confidence will seap away and we'll see another round of price cuts. Quote Link to comment Share on other sites More sharing options...
Yorkshire Lad Posted June 23, 2009 Share Posted June 23, 2009 (edited) Edited June 23, 2009 by Yorkshire Lad Quote Link to comment Share on other sites More sharing options...
Timm Posted June 23, 2009 Share Posted June 23, 2009 Valid point. Lending for home buying continues to rise. This might be positive for house prices if the other lines on that graph were not so negative for the economy. Quote Link to comment Share on other sites More sharing options...
heresjohnny Posted June 23, 2009 Share Posted June 23, 2009 There are something like 46m adults in the UK - people still have to move and buy properties. The only stat i'm watching at the moment is unemployment. Quote Link to comment Share on other sites More sharing options...
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