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Venger

Home Loans In 2013 Half Their 2007 Peak, Says Cml

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21 January 2014

Home loans in 2013 half their 2007 peak, says CML

The amount of money borrowed by home-owners last year was less than half that seen at the peak of the housing boom in 2007, mortgage lenders say.

The Council of Mortgage Lenders (CML) said the total amount lent out last year was £177bn.

Although that represents a 23% rise on the figure for 2012, it is still a long way below the peak.

In 2007, Britain's banks and building societies lent out £363bn in the form of mortgages.

The figures suggest that the UK is a long way from another housing boom.

However, the amount lent out in December, £17bn, was nearly 50% more than in the same month last year.

"Mortgage lending was stronger than we expected in the closing months of 2013," said CML economist Bob Pannell.

"But lenders expect little if any boost to borrower demand this quarter," he said.

Funding for Lending

While home-owners are borrowing more, Britain's businesses continue to borrow less.

continues http://www.bbc.co.uk...siness-25825165

The existing house price boom hasn't corrected, rather than thinking of even more HPI, or thinking house prices stable fair value now. That seems to be many VI's position. "House prices all ok now, shame about less prospect of another doubling any time soon, but let's hope for it anyway."

Seen nothing but fewer transactions, less borrowing in past few years, but often-time those borrowers paying 2007 prices and more for limited supply, imo, (except for in areas with low income prospects/ other forces of decline.)

Associated business lending: http://www.bbc.co.uk...siness-25823215

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The existing house price boom hasn't corrected, rather than thinking of even more HPI, or thinking house prices stable fair value now. That seems to be many VI's position. "House prices all ok now, shame about less prospect of another doubling any time soon, but let's hope for it anyway."

Seen nothing but fewer transactions, less borrowing in past few years, but often-time those borrowers paying 2007 prices and more for limited supply, imo, (except for in areas with low income prospects/ other forces of decline.)

Associated business lending: http://www.bbc.co.uk...siness-25823215

Nice reminder in the headline how far away volumes are from the peak!

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The existing house price boom hasn't corrected, rather than thinking of even more HPI, or thinking house prices stable fair value now. That seems to be many VI's position. "House prices all ok now, shame about less prospect of another doubling any time soon, but let's hope for it anyway."

Seen nothing but fewer transactions, less borrowing in past few years, but often-time those borrowers paying 2007 prices and more for limited supply, imo, (except for in areas with low income prospects/ other forces of decline.)

Associated business lending: http://www.bbc.co.uk...siness-25823215

The fall off in business lending is quite delicious too. The GDP numbers should start to look a little soggy going forward... unless the rat b@stard picks up his deficit spending again.

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While home-owners are borrowing more, Britain's businesses continue to borrow less.

Says it all. An economy built on speculation, not productive enterprise. The only way they can get house-builders to build is for the government to give them money via HTB.

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Nice reminder in the headline how far away volumes are from the peak!

If volumes are half what they were in `07 that means there are tons of people looking at price reduction as their only way to be competitive in a struggling market. A small uptick in rates should see the pressure building nicely.

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i like how the utterly unsustainable 2007 level is treated as some kind of holy grail like target to hit.

they havent learnt a thing.

It was not normal or average! ;)

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Nope...

The whole things was "financed" by

PREDATORY LIAR LOANS

THE World's Greatest Fraud & Ponzi/pyramid scam in all history....

I think we get the message that it is all about PREDATORY LIAR LOANS LOL tongue.gif.

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