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Boe: Net Lending Falls By 90% Mom

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The number of mortgages still sitting around 50k, so I assume this means a lot of people are paying off a lot of their mortgage at the moment with rates so low?

Doesn't the net lending figure strip out repayments?

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Doesn't the net lending figure strip out repayments?

Looks like it, so in summary, I have no idea what's going on here

Hopefully someone clever will be along shortly

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The number of mortgages still sitting around 50k, so I assume this means a lot of people are paying off a lot of their mortgage at the moment with rates so low?

Work with a young lad who took out a 120k morgage in june 2006 , who for the past two years has overpaid by 1k a month.

He reckons at the current prices he would come out just about even if he sold. If he could have walked away from his house like they can in certain parts of the USA he would have done 18 months ago when he was working all week just to see it all swallowed up by the debt on the house.

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Average mortgage lent is £140k

£112m net lending = about 800 new mortgages

Previous figure was £1.6 B net lending = about 11400 new mortgages.

As I read it net lending strips out redemptions and repayments. So, it seems the appetite/availability for/of new mortgages and new MEW has dried up.

Its a pretty shocking drop which means estate agents must largely be dealing with cash buyers or downsizers. If this continues for more than a few months EAs will just shut up shop.

That's my take. Could be wrong.

edit: but mortgage approvals runs at about 47,000 per month, so, fook knows what's going on. 47,000 approved but only 800 taken up ???

Edited by Harold Bishop

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Looks like it, so in summary, I have no idea what's going on here

Hopefully someone clever will be along shortly

I'm not clever, but I think nobody can get a mortgage even if they want one. Because lenders think there are good odds that the borrowers won't able to keep repaying and that the property they want to buy will reduce in value.

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The number of mortgages still sitting around 50k, so I assume this means a lot of people are paying off a lot of their mortgage at the moment with rates so low?

approvals

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Those figures are pretty shocking. Are we about to see house prices fall off another cliff? :unsure:

Of course not. Prices will be held up by all those cash rich foreigners flooding our shores.

:lol::lol::lol:

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From the BBC My link

Housing bubble

The figures show a dramatic difference between recent months and the height of the property market boom in the autumn of 2007.

In September that year, net mortgage lending increased by £10bn, the second highest monthly figure on record. Three years on, net mortgage lending was about 1% of that, at £112m.

Sweet

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There must be some desperate EAs with too much time on their hands out there! :lol:

There getting desperate.

Was reading the property paper this morning. My target area is different from the area where i live. The estate agent had a whole page for my target area in the property paper where i live. Never seen that before :lol:

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Average mortgage lent is £140k

£112m net lending = about 800 new mortgages

Previous figure was £1.6 B net lending = about 11400 new mortgages.

As I read it net lending strips out redemptions and repayments. So, it seems the appetite/availability for/of new mortgages and new MEW has dried up.

Its a pretty shocking drop which means estate agents must largely be dealing with cash buyers or downsizers. If this continues for more than a few months EAs will just shut up shop.

That's my take. Could be wrong.

edit: but mortgage approvals runs at about 47,000 per month, so, fook knows what's going on. 47,000 approved but only 800 taken up ???

No, given that most mortgages are repayment based, you would expect to see a fairly significant fall (i.e a few billion) if no new mortgages were taken up.

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As I read it, I think the wording is extremely misleading...i.e. crap.

When it is said it 'strips out repayments and redemptions', I think they mean it is the figure for lending including amounts for repayments and redemptions taken off.

I am thinking your interpretation is correct.

That being so, then theres not so much to get excited about as regards these figures (?)

Edited by bricor mortis

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Those figures are pretty shocking. Are we about to see house prices fall off another cliff? :unsure:

There were new fears for the troubled UK housing market after its car was found abandoned near Beachy Head earlier today.

One witness described how the market looked forlorn as it sat on a part bench near the cliff edge.

"There was a slightly plump lady with a posh voice trying to comfort the market. I heard her say something about using a ladder but it looked like the market was more interested in jumping.

"She must have been the last person to see it alive."

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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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