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Mortgage Approvals Fall For The First Time In A Year

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From BBC

The number of people taking out mortgages in the UK has fallen for the first time in a year, according to new figures from the Bank of England.

There were 70,309 mortgage approvals in February, a sharp fall on January, when 76,753 loans were approved.

The news surprised some economists - until now the number has increased every month since February 2013.

But the Bank said January's figure had been "erratically high," and the fall did not indicate a slow-down.

Analysts had expected a small dip in mortgage approvals in February, due to bad weather.

However they had not anticipated a drop of more than 6,000.

Business loans Nevertheless Howard Archer, chief UK economist with IHS Global Insight, pointed out that the number of approvals in February was still up by more than 33% on a year ago.

"The dip in approvals does little to dilute the view that the housing market is sustaining robust momentum," he said.

The Bank of England figures also showed that lending to businesses continued to fall.

UK businesses borrowed £447.5bn in February, down £0.8bn on January, and a fall of 3.7% over the last 12 months.

Since the beginning of this year, the government's Funding for Lending Scheme (FLS) has been re-focused on business loans, in an attempt to stimulate lending.

Through FLS lenders are able to borrow money at cheap rates, providing they pass the money on to companies or small businesses.

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Surely this should negatively impact house prices... maybe not.

'But the Bank said January's figure had been "erratically high," and the fall did not indicate a slow-down.' Yeah, yeah - keep propping up the market

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'But the Bank said January's figure had been "erratically high," and the fall did not indicate a slow-down.' Yeah, yeah - keep propping up the market.

The bank stating this, is not Halifax (ect), but Bank of England.

No slowdown. BoE got it covered.

http://www.bbc.co.uk/news/business-26817764

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There were 70,309 mortgage approvals in February, a sharp fall on January, when 76,753 loans were approved.

The news surprised some economists - until now the number has increased every month since February 2013.

Hmmm, 76753 / 31 * 28 = ....?

Easily surprised, some of these economists. And when was the last such dip... last February you say....? Amazing.

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Hmmm, 76753 / 31 * 28 = ....?

Easily surprised, some of these economists. And when was the last such dip... last February you say....? Amazing.

:lol:

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Boomers have nearly finished re-mortgaging their IO debt at 3% fixed for 5 years - as their LTV is below 50% now, even though they've not paid a penny of the principal.

(any FTBs get 5.5% 2 year fix on a 95% LTV for same debt, as they don't have any appreciated assets yet - and are paying effectively 4X monthly as they only quality for a repayment mortgage)

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I am not sure whether these are the seasonallty adjusted numbers? There should be a seasonal trend and a growth trend to unpick. I suppose because of the weather completions slipped into March?

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Zig follows zag follows zig follows zag

Gidiot no doubt putting the final touches to HTB 3

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Zig follows zag follows zig follows zag

Gidiot no doubt putting the final touches to HTB 3

Stagnation, intervention, boom. Ad infinitum. ( or at least until the boomer vote is inconsequential) is this the new normal?

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After 6 months, the rush to front-run help-to-buy is ending.

Good. The credit impulse from HtB must be falling off quite sharply now. On that basis, the GDP numbers should begin to soften going forward although the first wave of the great pension 'liberation' has clearly been implmented to offset that.

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I have mentioned several times on here lately that the Market has visibly slowed. I am not seeing the enthusiasm we saw in the first two months of the year. Far from March building on that momentum, as seemed likely at the start of this month, the fresh sold signs just stopped and new stock coming on has got us back to the autumn stalemate.

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Boomers have nearly finished re-mortgaging their IO debt at 3% fixed for 5 years - as their LTV is below 50% now, even though they've not paid a penny of the principal.

(any FTBs get 5.5% 2 year fix on a 95% LTV for same debt, as they don't have any appreciated assets yet - and are paying effectively 4X monthly as they only quality for a repayment mortgage)

I thought interest only had been scrapped until earlier today when I was poking around the First Direct website and found that 'offset' mortgages are interest only. I did find that you need a minimum £50k income to qualify, so that would exclude the vast majority of pensioners.

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Good. The credit impulse from HtB must be falling off quite sharply now. On that basis, the GDP numbers should begin to soften going forward although the first wave of the great pension 'liberation' has clearly been implmented to offset that.

Looks like a great time to sell £££'s and buy USD's - especially with china's credit crunch beginning.

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I thought interest only had been scrapped until earlier today when I was poking around the First Direct website and found that 'offset' mortgages are interest only. I did find that you need a minimum £50k income to qualify, so that would exclude the vast majority of pensioners.

I think they're commonly available if you need 50% or lower LTV - http://www.money.co.uk/mortgages/interest-only-mortgages.htm - and super low IR at that LTV too.

I appreciate the risk calculation going on here - but it's still intergenerational theft - the drawbridge has been pulled up and everyone who's not been in the castle for 10 years has to swim.

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Looks like a great time to sell £££'s and buy USD's - especially with china's credit crunch beginning.

You've got more faith than me in the Markets than me. Trying to second guess currencies and gold I find is often contrary to the facts.

Edited by crashmonitor

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I think they're commonly available if you need 50% or lower LTV - http://www.money.co....y-mortgages.htm - and super low IR at that LTV too.

I appreciate the risk calculation going on here - but it's still intergenerational theft - the drawbridge has been pulled up and everyone who's not been in the castle for 10 years has to swim.

the only theft I know of where the victims could simply say no.

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Looks like a great time to sell £££'s and buy USD's - especially with china's credit crunch beginning.

Doesn't China have a big stack of US T-Bills? I don't think they want to sell them, but needs must... wouldn't that trash the $ if they did sell them? (which is why they don't want to sell them)

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Doesn't China have a big stack of US T-Bills? I don't think they want to sell them, but needs must... wouldn't that trash the $ if they did sell them? (which is why they don't want to sell them)

The Chinese are unlikely to want to sell their USTs for the reason you give but they've slowed down the numbers they purchase essentially to the replacement rate (below) in the last couple of years.

In the event of another downturn in the global economy I'd expect the USD to continue to appreciate against most everything else. It's the global reserve currency, when demand is low the price goes up.

china-s-holdings-of-us-treasurys_chartbuilder.png

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H2B3 will be dishing out British cash to foreigners to buy UK properties.

Worth reminding everyone that Mervo the Clown's last act of treachery was to set up a renminbi swap line between the BoE and the PBoC so that UK taxpayers could help to bail out insolvent Chinese banks.

He may have looked like a kindly old Grandpa, but then so did Bernie Madoff.

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Hmmm, 76753 / 31 * 28 = ....?

Easily surprised, some of these economists. And when was the last such dip... last February you say....? Amazing.

To be fair it was written by a Halifax estate agent and published on the BBC website, without it seems any journalist involved at all.

"Who needs journalists anyway, you can just feed press releases directly onto the news website and call the job done."

I would like to propose that when quoting news stories we all agreed to include the journalists name, when there isn't one that should be a warning of 'spin ahead'

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