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Realistbear

Bo E Advisory: Mortgage Lending At Record Low

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http://uk.news.yahoo.com/4/20110201/tuk-mortgage-lending-at-record-low-dba1618.html

New
mortgage lending fell to a record low in 2010 and the figure is set to drop further this year. That is according to new statistics from the Bank of England which show £8.15 billion handed out last year.
The figure is down from £11.63 billion in 2009 and is the lowest level since the records began in 1987.

I like these sort of records. This market is so, like, screwed.

:D:D:D

Edited by Realistbear

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It is only the third time that the Bank of England has recorded a contraction in net mortgage lending, and the fall was the second biggest, after people repaid £377 million more than they borrowed in July last year.

It is a LOT worse than it appears. The market is about to tip over the edge of the mountain--forget the cliff.

:o:o:o *

* :lol::lol::lol:

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The continuing mortgage drought is bad news for the housing market, with the lack of buyers triggering a second round of house price falls.

Come to Papa baby!

Round 2 of the crash--this time the real crash begins after that little taster back in '08.

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This shows there is "really" a HPC, it's just that we can't see the wood for the trees.

I'm pretty sure the reason we have not seen the large property crashes like in Spain or USA in the headline figures is because of:

1) The distressed sales we should be seeing are kept off the market, because the owners are being propped up by the state

2) Even if they do get on the market, they are kept off the HP official figures

3) This mortgage drought tells us the volume of trade is right down, and that is because of the selection effect. If you are not going to make a profit, you don't put your house up for sale. My theory is that there are large areas where the owners know full well they will take a loss if they sell now. It's only the nice properties in nice areas that are currently in the official figures.

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This shows there is "really" a HPC, it's just that we can't see the wood for the trees.

I'm pretty sure the reason we have not seen the large property crashes like in Spain or USA in the headline figures is because of:

1) The distressed sales we should be seeing are kept off the market, because the owners are being propped up by the state

2) Even if they do get on the market, they are kept off the HP official figures

3) This mortgage drought tells us the volume of trade is right down, and that is because of the selection effect. If you are not going to make a profit, you don't put your house up for sale. My theory is that there are large areas where the owners know full well they will take a loss if they sell now. It's only the nice properties in nice areas that are currently in the official figures.

Policy round my way is NOT to put up a For Sale sign--there are so many on the market EAs are keeping a low profile so as not to start a panic.

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  • 284 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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