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Realistbear

Mortage Approvals Up Sharply

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http://uk.biz.yahoo.com/051027/214/fvgfd.html

"LONDON (ShareCast) - Mortgage approvals rose sharply in September from a year earlier, according to a new survey, raising hopes that the housing market has levelled out."

That was the optimistic HPI headline. Later in the little article:

"
Re-mortgaging was the main thrust for the surge
in underlying mortgage lending, hitting its highest monthly total since March 2004."

So which is true:--the market is improving or people are simply trying to get cheaper loans as they can't afford their existing ones.

Edited by Realistbear

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sadly if you donwload the PDF you'll see that the new loans (excluding remortgage) where up about 30% on last september in value. Numbers where up 10-15%.

So people are spending more money on houses than ever!

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Ok, been looking through the actual stats. These figures are the Average for New Homes:

Jan-04 - £100,765.94

Feb-04 - £104,936.48

Mar-04 - £109,164.86

Apr-04 - £110,797.27

May-04 - £113,888.61

Jun-04 - £116,487.92

Jul-04 - £114,179.93

Aug-04 - £112,115.82

Sep-04 - £111,326.27

Oct-04 - £113,148.40

Nov-04 - £120,097.36

Dec-04 - £118,302.12

Jan-05 - £113,894.08

Feb-05 - £123,290.29

Mar-05 - £127,151.56

Apr-05 - £129,231.68

May-05 - £125,358.19

Jun-05 - £131,632.51

Jul-05 - £132,691.16

Aug-05 - £130,476.70

Sep-05 - £130,475.71

So, people are currently taking on larger mortgages this year compared to last.

Edited by Jason

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I have to say ITS MY FAULT!

I actually got 2 mortgages approved. 1 I asked for and another that the banks processed based on an ENQUIRY! :blink::blink: :angry: .

So out of them approvals I am responsible for 2.

I am buying? Am I F*CK :P

Stats???? B0llox all of them. Approvals are not always reacted on. Anyone knows that.

My credit card got upped to £10K without me asking - It does not mean I am potentially 10K in debt does it?

Im spinning around..... move outta my way ...... I know you feel it coz you look like a tw@t!

Edited by teddyboy

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Guest Charlie The Tramp

My new neighbours moving up the ladder took on a larger mortgage as they took 40k profit out of their sale to carry out improvements to the new property ( Conservatory ). I think you will find this is very common when moving up the ladder. They are the seventh couple I know who have done this in the last twelve months. Take it Nationwide and how many new mortgages reflect this ?

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My new neighbours moving up the ladder took on a larger mortgage as they took 40k profit out of their sale to carry out improvements to the new property ( Conservatory ). I think you will find this is very common when moving up the ladder. They are the seventh couple I know who have done this in the last twelve months. Take it Nationwide and how many new mortgages reflect this ?

Good point there CTT. Does this mean that these numbers include mortgage applications to take equity out of their properties to spend on whatever - seems to tie in to the huge increase in national debt levels. If this is correct the inference that the increase in mortgages may have no correlation whatsoever to a revival in the property market........

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I really can't understand the SPIN aspect of these reports?

Do people think we are really bothered that people are applying for mortgages hoping to buy a property? We want people to get mortgages. We want them to go to the £130K house and say we can offer you £105K - that is OUR MAX!!

Why do people think that we expect the whole housing industry to STOP DEAD?

It is not a sign that the market is bouyant. Its a sign that EA's might sell 11 properties this month instead of 8. Compared to maybe 40-50 in the boom this is still depressing sales.

TB

CTT.

Your observation is quite correct. A house I was looking at in March needed £50Ks worth of work. I was going to to get 90% LTV for SHELL and put 10k up cash and borrow the further 40K on a rolling mortgage. House valued at £165K - last sold was £200K was offering to buy for £102K - then £112K - total spend £150K is with a custom built, perfect house. Told me to feck off though :) Still for sale - wonder if he would come back to me?????

Edited by teddyboy

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Guest Charlie The Tramp

Good point there CTT. Does this mean that these numbers include mortgage applications to take equity out of their properties to spend on whatever - seems to tie in to the huge increase in national debt levels. If this is correct the inference that the increase in mortgages may have no correlation whatsoever to a revival in the property market........

No, it`s much simpler than that.

Say you sell your property for 200k, you repay the mortgage outstanding of lets say 50k, you then have cash equity of 150k.

You buy your new property for 250k put down a 90k deposit and borrow 160k as a new mortgage over 25 years.

You are left with 60k for moving expenses and spare cash for improvements.

This I would think is the norm for today`s ladder climbers but I would never do it myself.

Borrow the minimum required and pay off as quickly as possible.

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CTT I am sure you are quite correct - your scenario would show up as a house sale/purchase statistic, and I am sure that there are many such cases as you have highlighted.

My point is that those bulls who herald a revival in house sales growth by saying that mortgages have now increased are totally misled - as the increase in the number and sizes of mortgages were in fact as a result of those individuals intent on extracting equity, without actually a house price sale/purchase taking place.

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Guest Charlie The Tramp

My point is that those bulls who herald a revival in house sales growth by saying that mortgages have now increased are totally misled - as the increase in the number and sizes of mortgages were in fact as a result of those individuals intent on extracting equity, without actually a house price sale/purchase taking place.

Sorry I misunderstood, I believe when you extract equity you effectively take on a new mortgage.

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Hi Jason, Good stats, but you need to multiply that by the fraction of approvals going through to completed sales.

Cos of the number of chains beaking / not moving and buyers pulling out, those figures are greatly missleading.

It just shows that aspriational movers are still looking to bigger things cos if the were realistic they would not bother applying.

For sure demand is there but not at the bottom of most chains (the most important plase ofcource.)

Edited by sp1

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  • 301 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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