exiges Posted January 4, 2012 Share Posted January 4, 2012 http://www.bbc.co.uk/news/business-16407968 Mortgage lending to home buyers is likely to keep on stagnating in the coming months, figures from the Bank of England suggest. In November 2011, just 52,854 mortgage loans were agreed in principle for home buyers. Although this was 12% higher than in November 2010, the figures have barely changed for the past four months. Mortgage approvals are still less than half the level recorded in the run up to the banking crisis in 2007. Howard Archer at IHS Global Insight said: "Housing market activity remains very weak compared to long-term lows and has been unable to develop significant upward momentum." "With the economic environment looking decidedly worrisome, we believe that house prices are headed downwards in 2012," he added. Although about 40% of all residential sales go through without the buyer having to take out a mortgage, the number of mortgages approved, but not yet lent, has traditionally been a very good indicator of short-term trends in the property market. So far there has been little sign of a relaxation in the strict mortgage rationing by banks and building societies, which has been going on since 2008. This has led to many first-time buyers being frozen out of the property market as they have been unable to raise the typical 20-25% deposit often required of them by lenders. As a result of this, and the rise in unemployment, many commentators are expecting sales to stay low this coming year, with prices expected to fall, possibly by as much as 10%. Quote Link to comment Share on other sites More sharing options...
exiges Posted January 4, 2012 Author Share Posted January 4, 2012 Cue the Daily Express trumpeting a 12% increase in house sales. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 4, 2012 Share Posted January 4, 2012 Mortgage approvals hit near two-year high The Telegraph headline. Quote Link to comment Share on other sites More sharing options...
Mrs Bear Posted January 4, 2012 Share Posted January 4, 2012 (edited) http://www.bbc.co.uk/news/business-16407968 Mortgage lending to home buyers is likely to keep on stagnating in the coming months, figures from the Bank of England suggest. In November 2011, just 52,854 mortgage loans were agreed in principle for home buyers. Although this was 12% higher than in November 2010, the figures have barely changed for the past four months. Mortgage approvals are still less than half the level recorded in the run up to the banking crisis in 2007. Howard Archer at IHS Global Insight said: "Housing market activity remains very weak compared to long-term lows and has been unable to develop significant upward momentum." "With the economic environment looking decidedly worrisome, we believe that house prices are headed downwards in 2012," he added. Although about 40% of all residential sales go through without the buyer having to take out a mortgage, the number of mortgages approved, but not yet lent, has traditionally been a very good indicator of short-term trends in the property market. So far there has been little sign of a relaxation in the strict mortgage rationing by banks and building societies, which has been going on since 2008. This has led to many first-time buyers being frozen out of the property market as they have been unable to raise the typical 20-25% deposit often required of them by lenders. As a result of this, and the rise in unemployment, many commentators are expecting sales to stay low this coming year, with prices expected to fall, possibly by as much as 10%. It's not just credit-worthiness/size of deposit/income multiples, either. Any excuse not to lend, IMO. FTBs I know, perfect credit score, good deposit, etc. had mortgage pulled at last minute because of an absentee freeholder, even though they'd embarked on statutory process to buy the f/h and could afford to do so. EA said that a couple of yrs ago lenders wouldn't have batted an eyelash. They'd sold plenty of similar with same problem in London, where it's not at all uncommon and there are specialist sols. to handle it. Edited January 4, 2012 by Mrs Bear Quote Link to comment Share on other sites More sharing options...
Monkey Posted January 4, 2012 Share Posted January 4, 2012 In November 2011, just 52,854 mortgage loans were agreed in principle for home buyers. in principle? what about actual mortgages? i could get 5 mortgages agreed in principle today, but only take one. any why dont they ever publish the brake down IE X as new mortgage X as re-mortgageing X FTBers Quote Link to comment Share on other sites More sharing options...
drrayjo Posted January 4, 2012 Share Posted January 4, 2012 Mortgage approvals hit near two-year high The Telegraph headline. Also from Telegraph: Quote Link to comment Share on other sites More sharing options...
Monkey Posted January 4, 2012 Share Posted January 4, 2012 Also from Telegraph: Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted January 4, 2012 Share Posted January 4, 2012 Uncanny, isn't it. It's now despair time. And that'd because no one has any de-spare money these days Quote Link to comment Share on other sites More sharing options...
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