Mortgage approvals in free fall

[Mapatasy]

http://www.propertyindustryeye.com/mortgage-approvals-slide-again-as-february-sees-an-11-drop-in-house-purchase-approvals/

http://www.cityam.com/282963/mortgage-approvals-fell-steeply-february-housing-market

 

 

[“Nasty Piece of work”]

Have you got it graphed, the past months over a number of years please?  I remember breaking under 60K (?) a month was mooted as a game changer. 

[janch]

This is very good news for HPC and is what started  "the crash that never was" in 2008.  What we don't need this time is more "help"

[afly]

Just now, TonyJ said:

The journalist on City AM looks about 12 years old.

I was going to comment but then discovered his name is Jasper Jolly

I think he's suffered enough

[papag]

Listening in to a conversation on Saturday young people were discussing porting a mortgage to a new build they had bought they asked on first application if the existing mortgage was portable if they ever moved which it was, the trouble is the were not informed of a fee of 4k was attached to port, cutting to the chase the few who were discussing it agreed the whole industry was crooked and renting was seen as the only way forward. So if this is the  general feeling of our younger generation its downhill for the banks /builders etc.

[CanAffordWontPay]

24 minutes ago, Freezer? Best place for it said:

Have you got it graphed, the past months over a number of years please?  I remember breaking under 60K (?) a month was mooted as a game changer. 

[CanAffordWontPay]

Full data set can be found here

https://www.ukfinance.org.uk/update-on-lending-for-february-2018/

[winkie]

There is no reason to have an arrangement fee, a change of details fee, a fee a percentage charge for this and that......they should be paying the customer for the business......the charges are incorporated into the price already. No way was this middlemen way of extracting extra money from customers so rife.....only getting worse imo.

[spyguy]

11 minutes ago, TonyJ said:

38,120 is certainly below 60,000.

There used to a bit a rough rule of thumb that ~100k/m mortgages were needed to stop house prices falling.

The number was never scientific, or even close, but it did a rough idea to how much finance was needed to clear the market of debt, deaths and divorces.

Of course, then people stopped selling houses - Lets rents Nans house for ££££ - so the number reduced.

But .....

There's been 10-15 years of very low mortgage rates. There's a lot of property that you'd have expected to be sold but didnt - in my home town, every other house has been up for sale and not sold at some time over the last 10 years.

My guess there's a good 8 years of supply that'll hit the market when IRs become less accomodative.

And this market only offers ~50% of the level of mortgage.

There's going to be a lot of sellers trying to exit thru a very tiny window

[winkie]

Just now, TonyJ said:

Borrowing money is a very expensive business. Cheaper to pay cash.

....not just borrowing is it though.......cheaper to not buy whatever charges an admin or arrangement fee.

[Assume The Opposite]

I had a remortgage appointment with Barclays recently. Even as an existing homeowner I was still stress tested at 6.9% after all other expenditure.  

I wonder if the MMR has really kicked in now as looking at mortgage calculators online they kick out the same borrowing potential, which is less than results I got a year or so ago. 

 

[CanAffordWontPay]

5 minutes ago, TonyJ said:

So it peaked out around 2003/04 and had a second much lesser top around 2006/07. The total has been flatlining since then below 100,000, but above 50,000. What was the total figure for Feb?

[CanAffordWontPay]

1 minute ago, TonyJ said:

So its still well within its range of the last few years, no significant change in feb, really.

Just a slight decrease compared to febuary 2017. With that said remortgaging did pick up a bit. I assume people taking advatange of the low rates before the inevenitable rate hikes

[zugzwang]

37 minutes ago, CanAffordWontPay said:

Full data set can be found here

https://www.ukfinance.org.uk/update-on-lending-for-february-2018/

Thanks.

[CanAffordWontPay]

10 minutes ago, TonyJ said:

Cheaper to buy nothing that has hidden costs, and if bought with debt, it is always wise to consider the total amount payable over the lifetime of the loan eg if a property costs £150K upfront with cash, it will probably cost say £400k total if the money is borrowed. That's a VERY big difference.

I know from aquantiances total amount is rarely considered. The monthly figure is all they care about...."it's the same amount as I pay in rent each month". £300k+ borrowed over 30 years attracts quite the sum in interest payments. I doubt they ever sit down and do the maths on current rates, let alone if we get double figures.

[Houdini]

25 minutes ago, CanAffordWontPay said:

I know from aquantiances total amount is rarely considered. The monthly figure is all they care about...."it's the same amount as I pay in rent each month". £300k+ borrowed over 30 years attracts quite the sum in interest payments. I doubt they ever sit down and do the maths on current rates, let alone if we get double figures.

Not if people are looking at monthly repayments which are of cause artificially low due to the insanely low interest rates we have. 

[winkie]

45 minutes ago, TonyJ said:

Cheaper to buy nothing that has hidden costs, and if bought with debt, it is always wise to consider the total amount payable over the lifetime of the loan eg if a property costs £150K upfront with cash, it will probably cost say £400k total if the money is borrowed. That's a VERY big difference.

.......the biggest way of increasing debt/paying more compounded is adding the fee to the loan......2 year fixed rate every two years for the life of the loan......easy money.

[Errol]

1 hour ago, afly said:

I was going to comment but then discovered his name is Jasper Jolly

I think he's suffered enough

Presumably this is a made up name?

[longgone]

1 hour ago, papag said:

Listening in to a conversation on Saturday young people were discussing porting a mortgage to a new build they had bought they asked on first application if the existing mortgage was portable if they ever moved which it was, the trouble is the were not informed of a fee of 4k was attached to port, cutting to the chase the few who were discussing it agreed the whole industry was crooked and renting was seen as the only way forward. So if this is the  general feeling of our younger generation its downhill for the banks /builders etc.

cheap rates but rip off fees.   the plebs need to read the small print. 

[longgone]

5 minutes ago, Errol said:

Presumably this is a made up name?

love child 

[leonardratso]

aye, fees make what seems like a cracking deal, not really so cracking in reality.

[Guest]

Seriously though, if you even had the money and had a kid you loved and wanted to help them buy their own home, would you risk lending  your hard earned cash on the dross that's out there. The guy that approves the few mortgages given I bet would never use his own money if he/she had it, but we all know that the banks money is not real and when it's not repaid it is a victim less crime

[winkie]

3 minutes ago, TonyJ said:

It comes down to the old argument, is the crap worth the money. I think millennials have decided it ain't, and they'd rather spend it on holidays instead.

Would not have said that in the past, but now, why not.......there must be better ways of putting a roof over your head, time for bigger better changes........down to people, growing numbers of people, millennials with support to change it.

[Guest]

10 minutes ago, TonyJ said:

It comes down to the old argument, is the crap worth the money. I think millennials have decided it ain't, and they'd rather spend it on holidays instead.

You remove over priced housing, and I don't know about the rest of you but I feel like I live real well. I eat like a King and very cheaply and  healthy,  amazing value in this day and age, I can fly to various EU countries for less than £50. If governments honestly valued  the mental health of its people, which I am now certain it does not, it would do something about over priced and squalid housing, life would be great then, fantastic even.

[mrtickle]

3 hours ago, afly said:

I was going to comment but then discovered his name is Jasper Jolly

I think he's suffered enough

"Jasper Jolly" wrote the article and his picture is at the top. I agree it must be a made-up name.

The person on the Core London TV embedded video is a different person, he looks a lot younger than Jasper.

 

Edited March 27, 2018 by mrtickle