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'steady Rise' In Mortgage Lending

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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 by LondonToManchester

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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.

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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 by boo

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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

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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?

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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.

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Other than food where is the inflation?

if your calling deflation or weak inflation expectations why should there be inflation in property prices ?

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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.

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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.

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Guest theboltonfury
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?

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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.

:P

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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)

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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.

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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.

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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.

:P

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.

hmrctrans0509.gif

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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...

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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.

hmrctrans0509.gif

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 ****.

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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.

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statsgraph230609.gif

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.

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