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See Through The Spin: Net Mortgage Lending Up Again

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http://news.bbc.co.uk/1/hi/business/your_money/4544842.stm

Beneath all the typical BBC VI flannel is this little gem:

Remortgaging

Normally, demand for mortgages tails off towards the end of the year and then revives in the spring as people start house hunting again.

However, the CML pointed out that the figures were being bolstered by high levels of remortgaging.

This happens when people stay put but simply move their mortgages to another lender to take advantage of a more favourable deal.

This currently accounts for about half of all new house lending.

So whenever someone quotes some huge number at you for monthly mortgage lending, say "Take that number, divide it in half, and then you MIGHT have a realistic picture of how much money is being lent out for house purchase, not MEWing for a new X5 or a holiday in Barbados".

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http://news.bbc.co.uk/1/hi/business/your_money/4544842.stm

Beneath all the typical BBC VI flannel is this little gem:

So whenever someone quotes some huge number at you for monthly mortgage lending, say "Take that number, divide it in half, and then you MIGHT have a realistic picture of how much money is being lent out for house purchase, not MEWing for a new X5 or a holiday in Barbados".

Yes, but its always been about half of the total mortgage lending - no change there.

The world is continuing as it has for a very long time. People are NOT massively mewing for X5s etc.

Reality is that the amount borrowed against new house purchases is up. Presumably approvals are up as well.

These are all indications that we may be in for another bout of rising prices :D

Or at least supportive of current pricing.

By my anecdotal experience, people are accepting of high houses prices and will do what they need to in order to raise the finances required. Equally, sellers are in no mood to accept drops in house prices and would rather take the house of the market than accept a drop.

There is no concept of a house price crash to Joe Public.

Crash - not a snowballs chance in hell of a crash :lol:

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Yes, but its always been about half of the total mortgage lending - no change there.

The world is continuing as it has for a very long time. People are NOT massively mewing for X5s etc.

Reality is that the amount borrowed against new house purchases is up. Presumably approvals are up as well.

These are all indications that we may be in for another bout of rising prices :D

Or at least supportive of current pricing.

By my anecdotal experience, people are accepting of high houses prices and will do what they need to in order to raise the finances required. Equally, sellers are in no mood to accept drops in house prices and would rather take the house of the market than accept a drop.

There is no concept of a house price crash to Joe Public.

Crash - not a snowballs chance in hell of a crash :lol:

well not till this one has finished,you can't have 2 crashes running concurrently

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Yes, but its always been about half of the total mortgage lending - no change there.

What complete and utter rubbish. Before the year 2000 remortgages had NEVER been more than 30% of gross mortgage lending. In fact the history of the last 30 years in the UK property market shows that the % of loans for house purchase has been steadily falling since the 1970's (when it was 100%), now making up less than half of all new loans.

http://www.cml.org.uk/cml/statistics

Click on the table "Gross Mortgage Lending By Type Of Advance" [sMLPR1].

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What complete and utter rubbish. Before the year 2000 remortgages had NEVER been more than 30% of gross mortgage lending. In fact the history of the last 30 years in the UK property market shows that the % of loans for house purchase has been steadily falling since the 1970's (when it was 100%), now making up less than half of all new loans.

http://www.cml.org.uk/cml/statistics

Click on the table "Gross Mortgage Lending By Type Of Advance" [sMLPR1].

Good link

Nice to see the remortgage % increase significantly in Jan each year. People remortaging to pay for their Christmas presents.

Expect more bullish headlines in January

MORTGAGE ADVANCES RISE AGAIN

as people remortgage their houses to pay for Xmas

Edited by MrB

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You can clearly see the trend in remortgages against purchases. Although, this only goes up to August 05! Data from CML website.

Edit: the measure on the left hand side is "%" of remortgages!

Edited by Jason

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What complete and utter rubbish. Before the year 2000 remortgages had NEVER been more than 30% of gross mortgage lending. In fact the history of the last 30 years in the UK property market shows that the % of loans for house purchase has been steadily falling since the 1970's (when it was 100%), now making up less than half of all new loans.

http://www.cml.org.uk/cml/statistics

Click on the table "Gross Mortgage Lending By Type Of Advance" [sMLPR1].

You answered my question before I even asked it. Thanks :)

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And the banks own a larger and larger slice of all assets not just enslaving the first time buyers but those foolish enough to mew, giving each and everyone the rope to hang themselves. It's 'boiled frog' syndrome, the waters lovely and warm until it's boiling and you didn't notice! :o

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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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