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Realistbear

Mortgage Approvals Rise In April

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http://uk.finance.yahoo.com/news/mortgage-approvals-rise-in-april-reuters_molt-d5dac8955591.html?x=0

Mortgage approvals rise in April
10:08, Wednesday 26 May 2010
LONDON (Reuters) - The number of mortgage approvals for house purchases rose an annual 15.5 percent in April to the highest level this year, industry data showed on Wednesday.
The British Bankers' Association said the number of loans approved for house purchase rose to 35,729 last month from 35,044 in March and 30,649 in April 2009.

So, net lending crashes to a 9 year low while net approvals rises to a frenzied double digit rate.

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http://uk.finance.yahoo.com/news/mortgage-approvals-rise-in-april-reuters_molt-d5dac8955591.html?x=0

Mortgage approvals rise in April
10:08, Wednesday 26 May 2010
LONDON (Reuters) - The number of mortgage approvals for house purchases rose an annual 15.5 percent in April to the highest level this year, industry data showed on Wednesday.
The British Bankers' Association said the number of loans approved for house purchase rose to 35,729 last month from 35,044 in March and 30,649 in April 2009.

So, net lending crashes to a 9 year low while net approvals rises to a frenzied double digit rate.

My brain does not compute....

So the amount of monye being lent fell... but the number of mortgages approved rose... surely meaning a fall in HPs?

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My brain does not compute....

So the amount of monye being lent fell... but the number of mortgages approved rose... surely meaning a fall in HPs?

It was net lending that fell. In other words the balance between new mortgages being created and money being paid back on existing loans has fallen. Or to put it another way, most of the new mortgages being created are funded by the incoming payments of existing mortgages.

Let's say there are 10 million existing mortgages of £100,000. Assuming they're all 25 year mortgages, the total amount of money being paid off is about 3 billion each month. Net lending was reported at +1.6 billion, so gross lending was 4.6 billion. That's enough money to fund 36,000 new mortgages each month with an average value of £127,000, which more or less agrees with the BBA figures.

My question is, where does that extra 1.6 billion come from if the banks are supposed to be scratching around for 300 billion to fill the gap left when the BoE support is withdrawn in the next couple of years?

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BBC2's Working lunch has just reported on this.

They said "mortgage lending rose at its slowest rate for 9 years druing April. Figures from BBA show that the net amount given for home loans was £1.83 billion, and that is the lowest since 2007.

Reasons include the end of the stamp duty holiday, the severe winter weather and uncertainty surrounding the general election.

All of that limited activity in the housing market."

:lol: still using the snow excuse.

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The British Bankers' Association said the number of loans approved for house purchase rose to 35,729 last month from 35,044 in March and 30,649 in April 2009.

The average for the last six months is 39,309.

So this months figure is 9% down on average.

Aren't spring bounces meant to bounce up?

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My brain does not compute....

So the amount of monye being lent fell... but the number of mortgages approved rose... surely meaning a fall in HPs?

approvals are not mortgages.

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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