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House Price Crash Forum

Band Of England Mortgage Approvals June


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HOLA441
I challenge every reader on this site to go to this mortgage wizard and find a lender that is prepared to lend to them: Be honnest with the figures. Find a property on Rightmove that you would like and enter your details.

http://www.mortgagelinked.co.uk/common/factfinder.asp?ID=

Is that your partner ID , HSP ?, bit naughty to do that.

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HOLA442

Interesting information from KON over on TMF.

BoE approvals are published net of cancellations.

The figures published have already accounted for those sales that fell through due to chains breaking or the buyer pulling out at the last minute.

However, the BoE do still publish gross approvals, so it's possible to see the cancelleation numbers before the actual approvals were published.

KON on TMF

Cancelleations have reduced markedly over the past 4/5 months, coming down from a high of 37% at one point down to 13% now. A further sign of confidence returning to the market.

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HOLA443
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HOLA444
Did I say it was a problem?

Net mortgage lending is the lowest it has ever been since records began in 1993 apparently.

Coupled with a slight rise in approvals, this would indicate that the average loan size continues to contract. I don't see why this should be a problem. The other thing it might indicate is that over indebted borrowers are selling out to cash rich buyers. That would be fine too - a nice bit of deleveraging.

Net mortgage lending = gross lending - repayments and redemtions.

It doesn't have any bearing on average loan size.

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HOLA445
Cancelleations have reduced markedly over the past 4/5 months, coming down from a high of 37% at one point down to 13% now. A further sign of confidence returning to the market.

So approvals net of cancellations up.......

And cancellations down from 37% to only 13%.......

So much for bloo loo and Sybil's much parroted "land of broken chains" theory!!!!!! :lol::lol::lol::lol:

This is turning into a great month. All those bear myths being debunked, no wonder they are getting desperate.

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HOLA448
Net mortgage lending = gross lending - repayments and redemtions.

It doesn't have any bearing on average loan size.

No, but it should be easy enough to calculate.

43.2K loans last month.

43.4K loans this month.

5.1 billion last month

5.4 billion this month.

Average loan last month 118,055

Average loan this month 124,400

Ooooops, thats another bear myth busted........

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HOLA449
Net mortgage lending = gross lending - repayments and redemtions.

It doesn't have any bearing on average loan size.

Looks like I have something to learn here. Can you explain further?

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HOLA4410
Looks like I have something to learn here. Can you explain further?

Net mortgage lending = gross lending - repayments and redemtions?

Well, to begin with gross lending also includes remortgages as well as mortgage for house purchase. And we know that remortgaging is generally falling as people stay on SVR's.

It's obviously easier for borrowers to pay down their mortgages when rates are low. Combined it's easy to see why net lending is falling.

Lending soley for house purchase has increased this month.

Edited by Rinoa
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HOLA4411
Net mortgage lending = gross lending - repayments and redemtions?

Well, to begin with gross lending also includes remortgages as well as mortgage for house purchase. And we know that remortgaging is generally falling as people stay on SVR's.

It's obviously easier for borrowers to pay down their mortgages when rates are low. Combined it's not easy to see why net lending is falling.

Lending soley for house purchase has increased this month.

Thank you.

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HOLA4413
This is turning into a great month. All those bear myths being debunked, no wonder they are getting desperate.

Well, if anything, some might be getting desperate at how bad you are in grasping the economics, i.e. ignoring the most basic laws of economic gravity despite plenty of arguments and facts thrown your way. At the moment you are looking at that cup and seeing it half-full. Realists are seeing it half-empty and drying out with some distortion added by some government intervences (quantitative easing), which add nothing to cushion the HPC, simply create a short-term bounce to facilitate political ratings.

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HOLA4414

I wonder who these 'people' are?

Anecdotally I know of not one friend, relation, colleague, neighbour, acquaintance etc. etc. etc. who is currently 'in the market'.

Other than my thick-headed niece who took out a 40-year mortgage around 18 months ago (who is now is big negative equity) I've definitely not heard of anyone since either!

Like lemmings one and all.

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HOLA4415

So to sum up, the number of mortgage approvals has gone up a bit, the average amount lent has risen, and there is an increase in people paying down / paying off mortgages they already have?

Have I got this right now?

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HOLA4416
And cancellations down from 37% to only 13%.......

That seems odd - I'd expect alot more applications (which would mean a closer level of cancellations) during this period, whether you see it as a bounce or a reversal.

This is turning into a great month. All those bear myths being debunked, no wonder they are getting desperate.

Doesn't this look like the top of a bounce to you, though? Obviously, only next month would confirm that, but I don't understand why you see this as a strong bull indicator.

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HOLA4417
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HOLA4418
No, but it should be easy enough to calculate.

43.2K loans last month.

43.4K loans this month.

5.1 billion last month

5.4 billion this month.

Average loan last month 118,055

Average loan this month 124,400

Ooooops, thats another bear myth busted........

Quibbling over pi55 willy figures - you really are a tw@t

There is nothing good about high house prices you f'ing fool

MODERATORS PLEASE FEEL FREE TO BAN ME FOR ABUSE

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HOLA4419
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HOLA4420
Previous 43.2K

Actual 43.4K

Lending for new purchase increased by 324 million to 5.4 billion from 5.1 billion the previous month, and is now 1.2% higher than it was a year ago.

Oh Hamish, you are clutching at straws today. :lol:

No wonder you didn't post the full article, it's a rise of 223 mortgages! Wow, recovery on. :lol:

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HOLA4421
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HOLA4422
all the recent activity figures such as approvals, lending and sales seem to be stabilising at about 40% of pre crash levels

if they continue at this 40% level, what are the implications? - in particular can house prices stabilise at such low levels or are they bound to drop further?

Not enough FTBs coming in to stabilize prices, and the economy is buggered anyway. No way prices will stabilise when unemployment is rising.

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