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Mortgage Problems Stop A Tenth Of Home Sales

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Almost one in ten home sales falls through because buyers cannot obtain finance, a survey of members of the Royal Institution of Chartered Surveyors (RICS) carried out for The Times has found.

http://business.timesonline.co.uk/tol/busi...icle6725438.ece

so if the lending figures we've seen lately (half of peak) represent the other 9/10ths, then there just isn't the demand?

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From the article

The Rightmove website yesterday reported its busiest week, with page views at 134 million in the week to July 11.

I think at least half of those are me and the wife sitting side by side glued to our laptops with thirty rightmove tabs open a piece trying to find at least one half decent house anywhere within a hundred miles amongst the rising tide of utterly over price dross.

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One in ten?

whats all the fuss about mortgage availabilty.

I suspect its one in 10 that have been approved.

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I think at least half of those are me and the wife sitting side by side glued to our laptops with thirty rightmove tabs open a piece trying to find at least one half decent house anywhere within a hundred miles amongst the rising tide of utterly over price dross.

:lol::lol: believe me, it's not just you

Morecambe looks cheap, and it's only 110 miles away from where i want to buy

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:lol::lol: believe me, it's not just you

Morecambe looks cheap, and it's only 110 miles away from where i want to buy

Yup I'm finding some nice stuff in Wales - shame I work in Birmingham.

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:lol::lol: believe me, it's not just you

Morecambe looks cheap, and it's only 110 miles away from where i want to buy

Theres a reason Morecambe is dead rough!! Not a place you would want to live in

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One in ten?

whats all the fuss about mortgage availabilty.

I suspect its one in 10 that have been approved.

Same sentiments here.

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Why do so many Times properties articles - and sh*t one's at that - often take more than one journalist to write? :blink:

Cos' they're laughing so hard they have to write it in shifts?

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50% of 90% LTV applications are being rejected, so only 10% failing seems incredibly optimistic.

sure, that seems about right...everywhere you look, there is a credit crunch, people are being turned down in droves, yet these people say its only 10%.

This is one reason I constantly check with bulls making claims that because approvals are up, that they all lead to completions.

clearly they dont, and the rise in completions shown in splines reports, where estimates of borrowed and cash buyers is etsimated, the number of cash buyers seems to be way up on the method used for his charts.

this means that the gut feeling at HPC is that cash buyers are the ones buying during this spring bounce.

it would also bear out my feeling on the levels of broken chains as offers may not turn into actual loans.

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sure, that seems about right...everywhere you look, there is a credit crunch, people are being turned down in droves, yet these people say its only 10%.

There's no inconsistency between:

1. 90% of mortgage applications are turned down

2. 10% of applicants can't get a mortgage

It means people put in more than one mortgage application, and not everyone gets their first choice. It probably also includes illustrative quotes: the agreement in principle.

(the actual numbers are of course illustrative).

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There's no inconsistency between:

1. 90% of mortgage applications are turned down

2. 10% of applicants can't get a mortgage

It means people put in more than one mortgage application, and not everyone gets their first choice. It probably also includes illustrative quotes: the agreement in principle.

(the actual numbers are of course illustrative).

I agree. but to assume either way is just that..assumption. bulls fail to provide facts of how the figures are produced, what the terms actually mean, nor bare stats.

the VIs do this deliberately....I know I would.

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Quote from OP.

Government’s attempt to improve the flow of funds is not delivering.†The Treasury’s Asset-Backed Guarantee Scheme was supposed to inject new funds into the market, with banks issuing securities to raise cash. However, as a critical report by the Commons Communities and Local Government Committee highlighted last week, big banks have yet to tap this source.

Plan to Increase Mortgage Availability Will Not Work

April 24, 2009

Doubts have been cast on a Government scheme announced in the Budget to help mortgage lenders raise billions of pounds of new funding from the money markets.

Experts said the plans to guarantee residential mortgage-backed securities, which banks and building societies used in the past to raise wholesale funding for new lending, will do little to improve the availability of mortgages.

The Government had previously promised up to £50 billion for the Asset-backed Securities Guarantee Scheme, but yesterday the Treasury admitted that it “did not expect uptake to be particularly highâ€, quashing the hopes of millions of homeowners unable to get a new home loan.

Tony Ward, of Home Funding Limited, a mortgage finance specialist, said: “There is not a market for these assets and the fact that the Government has offered to provide a guarantee is unlikely to help.

Quote again from OP:

There is no guarantee that mortgages promised now will be available in several months’ time.

What does that mean?

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I agree. but to assume either way is just that..assumption. bulls fail to provide facts of how the figures are produced, what the terms actually mean, nor bare stats.

the VIs do this deliberately....I know I would.

And there you have it Bloo BBC article today :

And it was "also worth noting that the only people lending are banks", Ms Knight added.

"Building societies can't do it due to their business model and they can't get access to funds as easily."

It was also clear that many borrowers were becoming "stuck in chains" when trying to buy somewhere to live, she said, meaning banks were "granting more mortgages than are being taken up".

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And there you have it Bloo BBC article today :

sybil13, you and your ironing board entice muchly!

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sounds like another fluff piece. like the complaints about banks preventing people from getting on with their lives by not lending at 0.5%

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