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koala_bear

Cml Sept. Mortgage Lending 12.9Bn

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http://www.bbc.co.uk...siness-15382797

(Press released figures not yet on CML website, only at news outlets...)

Mortgage lending still subdued, lenders say

Mortgage rationing is still keeping potential buyers out of the market Mortgage lending is still subdued, according to the latest figures from the Council of Mortgage Lenders (CML).

Total lending stood at £12.9bn in September, which was 2% lower than in August but 4% up on September last year.

But over the third quarter of the year total lending was 15% higher than in the second quarter, while still 2% down on a year ago.

The CML warned that lending might turn down again in the coming months.

"The housing market is very sensitive to wider household confidence, and this seems likely to weaken over the coming months in response to the latest spike in consumer prices and headline unemployment figures," said the CML's chief economist Bob Pannell.

Andrew Montlake, of mortgage brokers of Coreco, said the subdued state of the market had flattened out traditional seasonal variations.

"What is becoming clear however, is that lenders are increasing their product pricing, in one case upping their standard variable rate, due to increases in funding costs," he said.

"It therefore seems that we are now passing the nadir for mortgage rates which may spur some customers to take action before these historically low products disappear."

Richard Sexton, from chartered surveyors e.surv, said lenders were once again moving away from lending to people with small deposits.

"Their confidence has been further dented by the economic crises that are running amock in the eurozone, and by the cracks beginning to appear in the government's growth strategy," he said.

"With the supply of credit so restricted, there is almost no scope for them to grow their loan books, so they are understandably playing it safe and focusing on targeting borrowers with big deposits."

Edited by koala_bear

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these guys still maintain its down to buyer confidence.

This is abject nonsense when there is, by their own words, a mortgage famine.

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I usually avoid putting too much comment in an original post like that but the last sentence seems to suggest they know the market is controlled by lender confidence which is a step forward even if it contradicts what was said earlier! The "flight to quality" is hardly new but the admission of that quality finally seems to be drying up is interesting.

Bearish forward looking statements from CML's economist are also a rarity - admission that dead kitty has stopped bouncing?

"The housing market is very sensitive to wider household confidence, and this seems likely to weaken over the coming months in response to the latest spike in consumer prices and headline unemployment figures,"

these guys still maintain its down to buyer confidence.

This is abject nonsense when there is, by their own words, a mortgage famine.

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these guys still maintain its down to buyer confidence.

This is abject nonsense when there is, by their own words, a mortgage famine.

No famine my friend, unless you define a famine as mortgages for those that want to borrow 6 times income or more. They seem to be checking incomes a bit more carefully now.

So whilst prices remain out of reach to the honest, there isnt going to be a lot of demand for mortgages.

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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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