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May 2013 Loan Stats From The C M L

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The Council of Mortgage Lenders released loan stats for May 2013 this morning, showing a large uplift in loan volumes from May 2012, particularly to FTBs.

http://www.cml.org.uk/cml/media/press/3586

What stands out on these numbers is the average LTV ratio for FTBs which in May 2013 was 83%. This suggests a considerable easing of deposit requirements from lenders (in recent years the average LTV to FTBs has been around 78%-80%).

Furthermore the average loan value to FTBs is rising:

May 2011 = £119,500

May 2012 = £127,100

May 2013 = £135,500

It's unclear how much of these changes are due to government/BoE support programmes, but it would appear that we're inching our way back to higher risk levels on mortgage lending. The 'rising house prices' feel-good factor is clearly more important to the authorities at present than the stability of the banking system.

Still, it's all now underwritten by the state (both explicitly and implicitly), so I'm sure there's no problem.

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It's unclear how much of these changes are due to government/BoE support programmes, but it would appear that we're inching our way back to higher risk levels on mortgage lending.

Well,it worked out so well the first time.

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The Council of Mortgage Lenders released loan stats for May 2013 this morning, showing a large uplift in loan volumes from May 2012, particularly to FTBs.

http://www.cml.org.u...edia/press/3586

What stands out on these numbers is the average LTV ratio for FTBs which in May 2013 was 83%. This suggests a considerable easing of deposit requirements from lenders (in recent years the average LTV to FTBs has been around 78%-80%).

Furthermore the average loan value to FTBs is rising:

May 2011 = £119,500

May 2012 = £127,100

May 2013 = £135,500

It's unclear how much of these changes are due to government/BoE support programmes, but it would appear that we're inching our way back to higher risk levels on mortgage lending. The 'rising house prices' feel-good factor is clearly more important to the authorities at present than the stability of the banking system.

Still, it's all now underwritten by the state (both explicitly and implicitly), so I'm sure there's no problem.

lucky all those earning 45K are taking out their first mortgages.

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Average income multiples remain significantly below 3.5 for FTB's and 3 for movers.

Edited by Sancho Panza

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buy now before you miss out...on financial servitude.

the governments actions on supporting the banks and the housing ponzi are shameful at best.

anyone buying into this madness must be stupid.

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LSL Property Services are also noting the increase in risk levels, this time in relation to loans over 85% LTV in June 2013:

Risky house loans rise to highest since 2008 as property recovers

LARGE property loans, for buyers with a deposit worth less than 15 per cent of the house’s value, are more available now than at any point since the financial crisis.

According to data released by LSL Property Services Group today, more high loan-to-value mortgages were extended to people buying houses in June than in any month since September 2008. Loans that are large in comparison to the value of the property tend to be considered more risky.

City A.M.

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buy now before you miss out...on financial servitude.

the governments actions on supporting the banks and the housing ponzi are shameful at best.

anyone buying into this madness must be stupid.

They have been exposed to ramping propaganda from the cradle. Only strong independent minds resist, and then the government meddling appears to turn economic logic on its head. Its a madhouse.

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Whatever ones views on the future path of house prices, surely we're all in agreement that we're never returning to a world where price multiples and affordability are based on a single salary?

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With the right LTV level you can get a mortgage with a headline rate of 1.66% so yes the policies of a madman.

is that with a 50% deposit by any chance?

so to save a couple of grand you give the bunkrupt banks 10's of thousands of pounds....

the banks aren't exactly fair minded...anyone care to hazard a guess at what most happen next?

:lol:

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LSL Property Services are also noting the increase in risk levels, this time in relation to loans over 85% LTV in June 2013:

City A.M.

read as...we are taxing you to lend to any mug with a deposit so the banks dont collapse.

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The Council of Mortgage Lenders released loan stats for May 2013 this morning, showing a large uplift in loan volumes from May 2012, particularly to FTBs.

http://www.cml.org.uk/cml/media/press/3586

What stands out on these numbers is the average LTV ratio for FTBs which in May 2013 was 83%. This suggests a considerable easing of deposit requirements from lenders (in recent years the average LTV to FTBs has been around 78%-80%).

Furthermore the average loan value to FTBs is rising:

May 2011 = £119,500

May 2012 = £127,100

May 2013 = £135,500

It's unclear how much of these changes are due to government/BoE support programmes, but it would appear that we're inching our way back to higher risk levels on mortgage lending. The 'rising house prices' feel-good factor is clearly more important to the authorities at present than the stability of the banking system.

Still, it's all now underwritten by the state (both explicitly and implicitly), so I'm sure there's no problem.

Thanks again FreeTrader.

Locally, I am observing a 10% rise in completed prices compared to say October 2012. Asking prices are now another 10% above that.

Transaction volume, however, remain at the post 2007 levels.

So, yes, the property market in the Berkshire/Oxon area appears to be on the 'recovery'.

This appear to coincide with the quadruple actions by the [b,E,J,Fed]CB since Nov 2012.

Edited by easy2012

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Thanks again FreeTrader.

Locally, I am observing a 10% rise in completed prices compared to say October 2012. Asking prices are now another 10% above that.

Transaction volume, however, remain at the post 2007 levels.

So, yes, the property market in the Berkshire/Oxon area appears to be on the 'recovery'.

This appear to coincide with the quadruple actions by the [b,E,J,Fed]CB since Nov 2012.

As you would expect in peak trading period...the spring bounce.

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Whatever ones views on the future path of house prices, surely we're all in agreement that we're never returning to a world where price multiples and affordability are based on a single salary?

Er...... no!

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Whatever ones views on the future path of house prices, surely we're all in agreement that we're never returning to a world where price multiples and affordability are based on a single salary?

Whatever ones views on the future path of house prices, surely we're all in agreement that we're never returning to a world where price multiples and affordability are based on a single salary banks will only allow one adult to be a debt slave? :huh:

Yes, it could happen, but it must be the banks (or regulator) who 'allow' this by restricting lending.

It won't happen because the general population are so retarded and 90% of the ones who aren't are VI's.

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Whatever ones views on the future path of house prices, surely we're all in agreement that we're never returning to a world where price multiples and affordability are based on a single salary?

LIAR LOANS account for this amazing trickery.

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As you would expect in peak trading period...the spring bounce.

Or perhaps this is HTB, QE^4 + lower rates, NatYes bounce ?

Monthly transaction volume is not much change from the 'winter' time, just the prices (in fact winter transactions count was slightly higher)

Credit conditions do appear to have eased.

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Or perhaps this is HTB, QE^4 + lower rates, NatYes bounce ?

Monthly transaction volume is not much change from the 'winter' time, just the prices (in fact winter transactions count was slightly higher)

Credit conditions do appear to have eased.

If you are correct about volumes, then what is driving buyers to take on average another 9K in debt over last year?....I would guess the constant ramping is inducing fear in a number of people...miss the boat, etc etc.

Of course, this is all to get lending going...and what better than a 100K plus asset....wonder why all the computer scams appeared a few years ago...bucket shops selling cheap PCs and not paying suppliers...its because it was easy to sell 50 1K computers and dissappear with the cash...today, its bankers doing it to the order of 134 times that.

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Whatever ones views on the future path of house prices, surely we're all in agreement that we're never returning to a world where price multiples and affordability are based on a single salary?

I assume in this scenario nobody ever has children or loses their job.

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Article on high LTVs in the Daily Mail:

http://www.dailymail.co.uk/news/article-2361351/Return-85-mortgage-lending-buyers-tiny-deposits-surges-back.html

Judging by the feedback it seems pretty obvious that PR companies have now learned to manipulate the DM comment format for their corporate and state clients (as they do for celebs).

I'm sure this was written by your everyday Wail reader (one of a number of examples):

"Mortgages are now widely available with just 10% deposit helping lots of young people

purchase their first home. These mortgages have to be on a capital repayment basis thus

reducing the debt and the source of the deposit must be evidenced. There are stringent

affordability checks and in the majority of the country the monthly repayments are less

than the rent they would pay for a similar property. What is so wrong with that? Is it

so wrong that the government is encouraging banks to support young families on the

housing ladder?"

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Article on high LTVs in the Daily Mail:

http://www.dailymail.co.uk/news/article-2361351/Return-85-mortgage-lending-buyers-tiny-deposits-surges-back.html

Judging by the feedback it seems pretty obvious that PR companies have now learned to manipulate the DM comment format for their corporate and state clients (as they do for celebs).

I'm sure this was written by your everyday Wail reader (one of a number of examples):

"Mortgages are now widely available with just 10% deposit helping lots of young people

purchase their first home. These mortgages have to be on a capital repayment basis thus

reducing the debt and the source of the deposit must be evidenced. There are stringent

affordability checks and in the majority of the country the monthly repayments are less

than the rent they would pay for a similar property. What is so wrong with that? Is it

so wrong that the government is encouraging banks to support young families on the

housing ladder?"

Not just the DM comment section, plenty of it goes on here.

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Is the country actually any wealthier. REAL job growth. REAL wage increases?

If it looks like a bubble, quacks like a bubble, then its a bubble!

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Not just the DM comment section, plenty of it goes on here.

If the Government stuff has anything to do with the reports, just what do people think is going to happen when it stops?? Future borrowers are going to stump up??

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  • 243 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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