Jump to content
House Price Crash Forum
rantnrave

Mortgage Lending Down Again

Recommended Posts

Shirley someone else must have posted this somewhere else already?

A drop in mortgage lending to first-time buyers signals a dip in confidence among those intending to buy a home, according to mortgage brokers.

The number of loans approved to first-time buyers stood at 26,800 in September, the latest figures from the Council of Mortgage Lenders (CML) show.

This was a drop of 3% compared with the previous month and the second consecutive monthly fall.

However, this was still 16% higher than in September last year.

Lending to home movers also dropped compared with August.

"This reflects the market generally, suggesting a growing lack of confidence among buyers," said Jonathan Harris, director of mortgage broker Anderson Harris.

Paul Smee, director general of the CML, said: "Fears that the market is going to keep on overheating have rather gone away. The market seems in a much more stable pattern at the moment.

"I think what a lot of people are thinking about is that the next move in interest rates is going to be up, so there is perhaps a bit of caution around about people overextending themselves."

Earlier this month, mortgage lender, the Halifax, said that concern among consumers over potential interest rate rises could "curb" house buying intentions, as it reported slowing house price growth.

http://www.bbc.co.uk/news/business-30001741

Share this post


Link to post
Share on other sites

More here:

http://www.thisismoney.co.uk/money/mortgageshome/article-2829885/Mortgages-dip-bounce-landlord-loans-offsetting-fall-home-buyers.html

Mortgage borrowing dips as housing market comes off the boil but buy-to-let loans jump 15%

58,600 loans to home-buyers in September, down 7 per cent on August

July and September still highest quarterly total since 2007

Mortgage borrowing dipped in September to put further downward pressure on house prices, although the fall in loans to owner-occupiers was offset by a bounce in buy-to-let mortgages, major lenders have reported.

Share this post


Link to post
Share on other sites

add to that the decline of foreign buyers

But, but...someone on MSE told me that there are not enough houses to go round, some of the people living in the streets will maybe have collected enough bottle tops by now to buy, keeping prices up a bit longer....?

Share this post


Link to post
Share on other sites

But, but...someone on MSE told me that there are not enough houses to go round, some of the people living in the streets will maybe have collected enough bottle tops by now to buy, keeping prices up a bit longer....?

its all gone very quiet over on mse recently

Share this post


Link to post
Share on other sites

But, but...someone on MSE told me that there are not enough houses to go round, some of the people living in the streets will maybe have collected enough bottle tops by now to buy, keeping prices up a bit longer....?

There are plenty of empty houses....people that purchase security to park excess funds don't want the hassle of letting it out to strangers....they have their friends to care for it or pop by to stay in it, or pay people to stay in it...available to use it for high days and holidays.

....so you have the streets, people squeezed into overcrowded sometimes uninhabitable places, and all measure of things in between.....up to the one person sloshing around in a musty overgrown six bed mansion huddled in one room around an aga. ;)

Share this post


Link to post
Share on other sites

Interesting they focus on the negative m-o-m numbers rather than the positive y-o-y ones, I suspect a while ago they would have pumped the yearlies for all they were worth. Might they be downplaying the state of lending in order to maximize subsidy opportunities from the Autumn Statement?

Share this post


Link to post
Share on other sites

With the caveat that the CML figures are said by some on here to be a bit of a joke:

Looking at the graph they always seems to fall between August and September.

The figures are still well up on the same month last year.

Sadly, I don't really think this means very much yet.

Edited by oldsport

Share this post


Link to post
Share on other sites

Interesting they focus on the negative m-o-m numbers rather than the positive y-o-y ones, I suspect a while ago they would have pumped the yearlies for all they were worth. Might they be downplaying the state of lending in order to maximize subsidy opportunities from the Autumn Statement?

I thought that too.

It's the highest quarterly number since 2007!

Sneaky little buggers aren't they?

EDIT - The CML's own press release is titled "Highest quarterly house purchase lending level since 2007"

Edited by oldsport

Share this post


Link to post
Share on other sites

I think they are running out of suckers.

I went to the bank recently for something non mortgage related. The woman was asking if I wanted a mortgage, she says with my circumstance they would throw money at me, she also said they have large amounts of moneys to be lent they cant give away at he moment.

She said I am too think about buying a house and they would offer me all sorts of deals I couldn't get anywhere else.

I sense blood and panic :)

Share this post


Link to post
Share on other sites

Seasonally adjusted mortgage approvals have been on a downward trend recently, so no great surprise to see this reflected in the CML data (which covers actual loans, not approvals).

However when the October approvals numbers are released later this month it will be interesting to discover whether there has been any reaction to the extremely low mortgage rates now on offer. The BoE updated its database today with average household interest rates, and the 75% LTV series hit all-time lows in October (as did the 90% LTV series, but the BoE has only been recording this since May 2008).

MortRates1014a.gif

MortRates1014b.gif


Share this post


Link to post
Share on other sites

I went to the bank recently for something non mortgage related. The woman was asking if I wanted a mortgage, she says with my circumstance they would throw money at me, she also said they have large amounts of moneys to be lent they cant give away at he moment.

Were any staff at the door preventing savers coming in and making a deposit?

Share this post


Link to post
Share on other sites

Seasonally adjusted mortgage approvals have been on a downward trend recently, so no great surprise to see this reflected in the CML data (which covers actual loans, not approvals).

However when the October approvals numbers are released later this month it will be interesting to discover whether there has been any reaction to the extremely low mortgage rates now on offer. The BoE updated its database today with average household interest rates, and the 75% LTV series hit all-time lows in October (as did the 90% LTV series, but the BoE has only been recording this since May 2008).

MortRates1014a.gif

MortRates1014b.gif

Interesting. Thanks.

I wonder how low the rates can go with assumed margins also falling. I suspect without the re-mortgage business some lenders will just exit the market, and look for other business areas with better margins. The payday loans sector seems to be changing but it's difficult to see where the gov' sees that one.

Share this post


Link to post
Share on other sites

Not looking good for Osborne's phoney deficit reduction timetable either. Another £140bn for 2014-15 and a recession next year would just about put us back to square one, wouldn't it? :lol:

Share this post


Link to post
Share on other sites

Not looking good for Osborne's phoney deficit reduction timetable either. Another £140bn for 2014-15 and a recession next year would just about put us back to square one, wouldn't it? :lol:

NIESR's prediction (yesterday I think) for Q3 GDP is 0.7%. I thought it might have started falling away by now. I know that you've also thought for a long time that GDP growth would fall later on this year; are you surprised it still seems to be holding up?

Edited by oldsport

Share this post


Link to post
Share on other sites

Not looking good for Osborne's phoney deficit reduction timetable either. Another £140bn for 2014-15 and a recession next year would just about put us back to square one, wouldn't it? :lol:

Well a CPI update is near due. The MPC are relaxed on this (their inflation fan chart does show CPI towards downside of 2% target). Maybe we'll get a CPI reading like 0.x% this month or before year end. I've not checked out the wage settlements maybe we're at real wage growth territory.

http://www.bbc.co.uk/news/10612209

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   218 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.