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Joey Buttafueco Jr

Cml: Approvals Up 4% Mom

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New estimates from the Council of Mortgage Lenders suggest that a higher proportion of young first-time buyers than ever before are getting help from parents to enter the market.

Bank of Mum and Dad still going strong by the looks of it...

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Doesn't sound as much when you say it is around an extra 1,500 mortgages, and at a lower level of loan, but still an increase. Still 28% lower than last year, which I thought was low.

Still, greater turnover at lower prices is good as it embeds the lower prices.

And we need about 70,000 - 80,000 for price stability, or there abouts.

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May average over last 7 years 96000 loans for house purchase.

May 09 37400 loans.

28% down on previous year.

61% down on seven year average.

But, still up a whopping 4% MoM.

HPC over. :lol:

Well put!

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Number of    	  Value of house     Number of           Value ofhouse purchase    purchase loans     remortgage         remortgageloans                   £m              loans                  loans £m May 2009	         37,400   4,700	 29,000	3,300 Change from April 2009	 +4%	 +2%	 -9%	 -8%Change from May 2008	 -28%	 -39%	 -63%	 -68%

So, average value of house purchase value down 2% on the month and 13.6% on the year. Must be those higher LTVs, spring bounce, erm...

Edited by Hara

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Interesting figures. I have had a play with the numbers.

According to my basic maths, these suggest the following for FTB

May 2008 Paid an average of:

£147k for house

£131 borrowed from lender

£16k deposit

May 2009 averages........

£142,800 for house

£107k from lender

£35k+ deposit

Direct proof if ever it were needed that house prices are being supported by a small number of buyers with big deposits in a very small market. As it stands, the constraints of mortgage valuation are not being allowed to do the job we want - ie bring prices down - because a small number of people have money they can afford to burn.

Soon enough these buyers will run out or stay away. The reality will hit that vendors will have to accept that their buyer will have a smaller deposit and will have mortgage valuation constraints from their lenders.

The next stage for them will be to port their negative equity with a deal similar to the one currently being fanfared by Nationwide.

Crash on!

Edited by Nick Dastardly

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May average over last 7 years 96000 loans for house purchase.

May 09 37400 loans.

28% down on previous year.

61% down on seven year average.

But, still up a whopping 4% MoM.

HPC over. :lol:

Problem is housing stock , good to have an increased demand but no good if instructions are down 60%, just a load of sheeples desperate to take on debt and negative equity coughing up for overpriced property .

So are lenders giving it all away now in the hope the government will give them another £100bn + to give away this year and keep the whole thing going until the next election?

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CML's latest data shows signs that lending criteria stopped tightening in May. Since reaching a record 25% in February, the average first-time buyer deposit has remained unchanged. And the typical first-time buyer income multiple has held at 2.97 from April.

The number of loans for house purchase edged up 4% from April to 37,400 (worth £4.7 billion), but this is 28% lower than the number of loans in May 2008. House purchase lending is still depressed by historical standards: in the last seven years the May average was 96,000 house purchase loans.

CML economist Paul Samter said:

"Lending remains at very low levels, with the modest increase in house purchase activity off-set by a fall in remortgaging. The trend of tightening lending criteria seems to have subsided and we may see a modest easing in these measures over the summer, which will help some borrowers. But overall, access to mortgage finance will still be constrained by the diminished number of active lenders and shortage of funding available to them.

Good news about QE let's hope that the BOE do decide to limit QE in August to £125bn

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Bank of Mum and Dad still going strong by the looks of it...

Isn't it madness - the money that many parents have made by downsizing and releasing equity is now pouring back into...wait for it...more property!

:blink:

Proof that the whole scam is simply a system of wealth distribution, not creation.

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Isn't it madness - the money that many parents have made by downsizing and releasing equity is now pouring back into...wait for it...more property!

:blink:

Proof that the whole scam is simply a system of wealth distribution, not creation.

Absolutely. For years parents have been lending money to their children to help them enter the pyramid at the bottom, allowing them to take more money out from the top.

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"But that doesn't mean the challenges for first-time buyers are over. Newly updated CML analysis suggests that around 80% of first-time buyers aged under 30 are likely to be receiving help from parents as they are unlikely to have been able to build up the deposits needed to enter the market from their own resources"

they are borrowing around 5 to six times the average wage, and are also unable to save a deposit.

this is clearly sustainable......NOT

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