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Mortgage Lending Will Not Recover In Next Year - Banks

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http://www.bbc.co.uk/news/business-11804832

Banks and building societies have told the BBC they do not expect any significant recovery in mortgage lending next year.

A new vetting process for mortgages could "cement in place restricted... lending", denying many the chance to buy the homes they want, they added.

The warning comes after figures showed new mortgages last month, at £12.4bn, were the lowest for a decade.

First time buyers are most affected by the lending drought.

Mortgage lending is barely a third of the level of three years ago, said BBC personal finance correspondent Simon Gompertz.

For first time buyers, many who could easily afford the monthly payments on a mortgage are prevented from buying because deposits are so high, he added.

The average down payment for new buyers is 24% of the price.

House prices declining

Meanwhile, financial watchdog, the Financial Services Authority (FSA), has put banks and building societies on notice that it will require stricter assessments of mortgage applicants' income and ability to pay, particularly if there's a significant rise in interest rates.

The lenders warn that this tougher regime would have prevented half of recent borrowers from getting a mortgage.

Last week the Council of Mortgage Lenders said mortgage lending continued to be subdued.

Total mortgage lending in October was the same as in September but the lowest October figure since 2000.

After picking up again earlier this year, property sales and house prices have been declining since the summer, surveys from the likes of Halifax bank have shown.

Meanwhile, the Royal Institution of Chartered Surveyors (Rics) has pinpointed a surplus of sellers over buyers as a key factor in the recent downturn in prices.

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I was delighted to see butter was less than £1 a pat again today.

I snapped one up.

they may of course be £0.90 next week, but they may not.

deflation certainly does NOT Lead to no demand.

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This really winds me up.

Rational lending policies will protect taxpayers from having to bail out the banking system in the future.

Rational lending policies will result in lower house prices.

Potential buyers only have to wait for house prices to adjust to the new rational lending policies before buying. They are not being denied a home at all. They are simply being asked to wait. Waiting will be to their benefit.

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I was delighted to see butter was less than £1 a pat again today.

I snapped one up.

they may of course be £0.90 next week, but they may not.

deflation certainly does NOT Lead to no demand.

Butter is not an investment and has no re-sell value to you. It's not comparable.

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Butter is not an investment and has no re-sell value to you. It's not comparable.

Food, clothing and shelter are three of the main requirements for human survival.

Butter was considered to be an investment with resale value by spivs in WW II. Housing is considered to be an investment with resales value by spivs in 2010.

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Butter is not an investment and has no re-sell value to you. It's not comparable.

repayments are a drain on your ability to buy food.

A house is only an investment in two cases...1..Ponzi finance allows another to borrow and bid up the price or 2..Ponzi finance allows another to borrow and bid up the price.

In either case, a house actually produces no wealth whatsoever, save from its creation and addition thereto.

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I was delighted to see butter was less than £1 a pat again today.

I snapped one up.

they may of course be £0.90 next week, but they may not.

deflation certainly does NOT Lead to no demand.

Remember that Kerrygold is denominated in dollars and by buying it you expose yourself to dollar risk.

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Remember that Kerrygold is denominated in dollars and by buying it you expose yourself to dollar risk.

good point, but that is why I went Physical...its in the fridge. ( I save the wrappers for conversion to genuine G stuff)...it looks like it, feels like, must be able to fool someone with it.

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Butter is not an investment and has no re-sell value to you. It's not comparable.

You've hit the nail on the head for why the whole 'deflation makes consumers put off purchases' argument is total bull. The only things that people put off buying in a deflationary environment are 'investments'. Consumption of consumer products like butter does not go down in a deflationary environment, but it is consumption that keeps an economy going. Inflation in the prices of consumer goods means that people consume less. No one buys and hoards butter in the expectation of future prices rises - such a move would be ludicrous.

Investments do not keep an economy going, and so economic policies should not be directed to staving off deflation. It is just madness to resist deflation in 'investments' or consumer goods.

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This is really beginning to ****** me off? Recover? Recover? What the ****** are these morons on about? This is like claiming that George best despite being dead won't "recover" until he's drinking as much as he used to.

Has it completely passed these ***** by? The world economy has nearly burned down due to levels of debt due to irresponsible lending. Ireland has just gone bust because of irresponsible lending. The u.k is totally crippled due to record debt levels.

We are in recovery now. The last thing the patient needs is the " recovery" these snake oil salesmen desire.

The media are complicit and the cognitive dissonance is getting difficult to ascribe to ignorance. It's malice.

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  • 150 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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