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Mortgage Approvals In December Dropped More Than Expected

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http://uk.finance.yahoo.com/news/December-mortgage-approvals-reuters_molt-300863258.html?x=0

:33, Tuesday 1 February 2011
LONDON (
Reuters
) - Mortgage approvals for house purchase fell
more than expected
in December to their lowest since March 2009, official data showed on Tuesday.
The Bank of England said mortgage approvals numbered 42,563 in December, down from 47,287 in November (Berlin: NBXB.BE - news) . Analysts had forecast a reading of 47,000.

Getting there, slowly, but getting there.

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http://uk.finance.ya...863258.html?x=0

:33, Tuesday 1 February 2011
LONDON (
Reuters
) - Mortgage approvals for house purchase fell
more than expected
in December to their lowest since March 2009, official data showed on Tuesday.
The Bank of England said mortgage approvals numbered 42,563 in December, down from 47,287 in November (Berlin: NBXB.BE - news) . Analysts had forecast a reading of 47,000.

Getting there, slowly, but getting there.

so the house demand is 10% lower in one month ... nice one .....

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Forex factory is reporting net lending to individuals at 0.1bn, against 0.5bn predicted and 0.4bn previous, which has been revised down from 0.7bn.

http://www.forexfactory.com/calendar.php

That does seem like a very small amount of money - anyone with any insight?

edit: typo

New mortgage lending fell to a record low in 2010 and advances are expected to drop further during the coming year, figures showed today.

Net lending, which strips out redemptions and repayments, totalled just £8.15 billion during the year, down from £11.33 billion in 2009 and the lowest level since the Bank of England's records began in 1987.

The market finished the year on the back foot, with net lending contracting by £298 million during December, as homeowners repaid more than lenders advanced.

http://www.independent.co.uk/news/uk/home-news/mortgage-lending-at-record-low-2200650.html

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Isn't the (total lending) = (all lending - all repayments)

i.e. all lending could have increased, as long as lots of people are also repaying?

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Isn't the (total lending) = (all lending - all repayments)

i.e. all lending could have increased, as long as lots of people are also repaying?

So if a third of people made it through January on their credit cards, there's a good percentage who paid back debts last month to offset that?

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Any theories on why such a fall?

Potential buyers don't want to borrow and potential lenders don't want to lend IMHO... it might have something to do with over-priced housing.

The banks are looking pretty silly - they don't want to lend anyone money to buy over-valued houses, but they can't afford to let the price of those houses fall... you couldn't make it up...

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Link to BOE

Total lending to individuals fell £0.1 billion in December. The twelve-month growth rate fell to 0.7% from 0.8% in November.

Within the total, lending secured on dwellings fell £0.3 billion (Table A), compared to the previous six-month average of a £0.6 billion rise. The twelve-month growth rate fell 0.1 percentage points to 0.7% and the three-month annualised growth rate fell 0.1 percentage points to 0.4% (Chart 1). The number of loan approvals for house purchase (42,563) fell in December (Table B) and was lower than the previous six-month average (47,433). Approvals for remortgaging (30,595) also fell in December but were still higher than the previous six-month average (29,362), while approvals for other purposes (20,173) fell in December and were lower than the previous six-month average of 23,597.

Consumer credit rose by £0.2 billion, higher than the previous six-month average. The twelve-month growth rate was unchanged at 0.6%. Within consumer credit, credit card lending was little changed while other loans and advances rose £0.1 billion.

So, some extension of short term credit which might be expected in the run up to Xmas. But overall, consumers have been paying it back.

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M4 down 1.3%.

Bye bye interest rate rise, hello price inflation.

So let's see; interest rates at virtually zero, QE at 200bn and the housing market is still sinking like a stone. Doubt whether the elite can do anything to inflate the asset bubble bar sending out cheques to every adult in the UK for 50k - yes contrary to popular myth they love inflation but the forces of deflation are too strong.

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So let's see; interest rates at virtually zero, QE at 200bn and the housing market is still sinking like a stone. Doubt whether the elite can do anything to inflate the asset bubble bar sending out cheques to every adult in the UK for 50k - yes contrary to popular myth they love inflation but the forces of deflation are too strong.

I've read somewhere that all the QE money went to speculators who punted the money on commodities.

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The banks are looking pretty silly - they don't want to lend anyone money to buy over-valued houses, but they can't afford to let the price of those houses fall... you couldn't make it up...

I'm going to enjoy watching reality bite. I'm a potential buyer, but not before this situation has worked through.

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I've read somewhere that all the QE money went to speculators who punted the money on commodities.

Sadly correct. One could also add that QE has funded bankster bonuses and is propping up the banks' balance sheets. Heaven forbid any of it should end up in the pockets of workers - Merv's vigilant on wage inflation you see!

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Sadly correct. One could also add that QE has funded bankster bonuses and is propping up the banks' balance sheets. Heaven forbid any of it should end up in the pockets of workers - Merv's vigilant on wage inflation you see!

The problem compounds. Bonuses (enabled by QE) find their way into hedge funds, which... speculate in commodities. It's a vicious cycle.

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Potential buyers don't want to borrow and potential lenders don't want to lend IMHO... it might have something to do with over-priced housing.

The banks are looking pretty silly - they don't want to lend anyone money to buy over-valued houses, but they can't afford to let the price of those houses fall... you couldn't make it up...

Perfect!

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I'm going to enjoy watching reality bite. I'm a potential buyer, but not before this situation has worked through.

I think reality will gently chew like a sheep does on grass - side to side, grinding motion

and it will take a decade, unfortunately

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It does feel like last time; inflation picks up , mpc raise rates and the economy go's down the pan. Over in maidstone it feels like recession on the high street!

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So if a third of people made it through January on their credit cards, there's a good percentage who paid back debts last month to offset that?

Yes, but you'd have to look at the demgraphy of who is spending and who is saving.

My bet is that it is the ordinary Joe who's spending, and maxing out, and it's the bankers with their bonuses that are making it look balanced.

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Yes, but you'd have to look at the demgraphy of who is spending and who is saving.

My bet is that it is the ordinary Joe who's spending, and maxing out, and it's the bankers with their bonuses that are making it look balanced.

Hmm not sure about that. If you look at the companies doing well at the moment, it's all high end luxury of solid upper-middle class entities - that's where the QE cash has been shovelled. Look who are faltering, the likes of Tesco and Carpetright. QE hasn't trickled down to the masses (and won't either) but rather hoarded by an elite to speculate on prime property and commodities and to spend at Prada, Burberry etc. In most countries this would have the sheeple out on the streets a la Cairo but sadly not.

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Any theories on why such a fall?

SNOW!!!!!!!!!

by god man, havent you learnt to blame all drops in figures for anything that was manufacturered/sold/eaten/guessed etc is 100% down to the snow

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Hmm not sure about that. If you look at the companies doing well at the moment, it's all high end luxury of solid upper-middle class entities - that's where the QE cash has been shovelled. Look who are faltering, the likes of Tesco and Carpetright. QE hasn't trickled down to the masses (and won't either) but rather hoarded by an elite to speculate on prime property and commodities and to spend at Prada, Burberry etc. In most countries this would have the sheeple out on the streets a la Cairo but sadly not.

I read here a year or so back that a lot of CarpetRight's profits came from the shops' values rather than Sales. Have no evidence of that to hand, and it also makes sense that people can postpone new carpet purchases when money is a bit tight, or if they want to pay down debt.

It certainly appears that the impact of QE was that HPs in the SE and London have gone up more than elsewhere.

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  • 309 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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