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Freelance Mycophagist

Boe Reporting (mortgage Figures)

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My employer announced last week that any new lending MUST now be arranged as a separate loan. Up untill now, new lending (MEW) was, more often than not, added to the orignal loan figure with the new, increased mortgage paying off the old one.

e.g. customer with £100k mortgage requests an additional £20k. New mortgage of £120k is arranged to repay old mortgage:

Mortgage of £120k reported to BOE

Now this 'new money' has to be arranged as a separate loan:

Mortgage of £20k reported to BOE

The reason given for this change was that the figures reported to the BOE were inacurate and their lending procedures needed to change to remedy this. Could this request / instruction have come from the BOE? I think this is highly likely - anyone know of any other lenders doing the same?

If this is to be applied uniformly across the industry, the dent in mortgage approval figures could be substantial.

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So the BoE lending figures for home purchases will show a huge drop in the coming months, as a high proportion is currently remortgages portrayed as new loans. Interesting.

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Decided to 'bump' this thread as i discovered yesterday that, as suspected, this is an industry-wide directive from the FSA / BOE to rigorously inforce their existing 'dual pricing' rules. This requires mortgage lending to be reported as outlined in my first post. Two rather important implications of this change:

1. Mortgage approval figures are likely to drop, given that most of the business out there is through remortgages.

2. Is the UK really £1.3 trillion in debt? - the true figure could be lower as a result of double counting (internal remortgaging) through non-adherence to the dual pricing rules.

Any thoughts?

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2. Is the UK really £1.3 trillion in debt? - the true figure could be lower as a result of double counting (internal remortgaging) through non-adherence to the dual pricing rules.

Any thoughts?

I'd have thought that adding up the new loans every month would be a pretty stupid way for the BoE to measure overall levels of debt, but then again, that doesn't mean it's not how they've choosen to do it...

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I'd have thought that adding up the new loans every month would be a pretty stupid way for the BoE to measure overall levels of debt, but then again, that doesn't mean it's not how they've choosen to do it...

How dare you suggest that any part of the organisation that governs us is not a perfect and faultless team of experts who cannot make mistakes :(

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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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