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Guest wrongmove

Mortgage Approvals 117k

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Guest wrongmove

Mortgage approvals rise

"The number and value of mortgages approved in the UK rose in May, official data suggests, hinting at a market recovery after surprising falls in April.

Mortgage lending rose by £9.3 billion during May according to Bank of England figures, which is considerably above April's increase of £8.6 billion and the average £8.7 billion rise of the last six months.

In April the number of mortgage approvals fell to 106,000, its lowest value in 2006, but last month recovered to 117,000. ...."

See spline's/Kon's excellent posts for why this is bad news - basically, prices ain't likely to drop for the next 6 months or so on these figure. They indicate a pretty bouyant market.

Before all the usuall spiel, these are approvals for house purchase only. They are compiled by the BoE. They do not include MEW or remortgaging. Anything over 90k has always led to HPI around 6 months later. This is a very strong number.

:(

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Guest Charlie The Tramp

Bank Of England

Lending To Individuals May 2006

Monthly release of growth rates, amounts outstanding and changes in total lending to individuals, broken down into lending secured on dwellings and consumer credit. The release also includes data on the value and number of approvals secured on dwellings.

lendind.pdf

lendind.pdf

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Guest Charlie The Tramp

And further

The number of approvals for remortgaging was also higher (by 7,000 )

Now I wonder if this is because of the massive TV advertising for consolidation of debts we have been witnessing. These companies would not spend the vast sums on their television advertising if the response was not profitable. :)

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Guest Bart of Darkness

And further

Now I wonder if this is because of the massive TV advertising for consolidation of debts we have been witnessing. These companies would not spend the vast sums on their television advertising if the response was not profitable. :)

Considering the frequency and prevalence of these ads, particularly during the daytime, I'm inclined to agree.

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Before all the usuall spiel, these are approvals for house purchase only...

Well it certainly was posted before the usual crap, er sorry spiel!

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Guest Charlie The Tramp

Considering the frequency and prevalence of these ads, particularly during the daytime, I'm inclined to agree.

What did it cost Ocean Finance to make their desert island advert ? Then take the number of slots they book and you must be talking mega money and that is just one company.

May mortgage lending recovered to 117k and remortgaging for all purposes was not far behind at 102k. It would be interesting to know what percentage of remortgaging was for consolidation purposes. :rolleyes:

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Yup this is bad news in the near term. Remember the strong mortgage approval figures around Christmas time, and how the 'mini-boom' followed.

Hard to rationalize this really.

I'm looking for a sub 100k figure as a bearish bellwether.

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Yup this is bad news in the near term. Remember the strong mortgage approval figures around Christmas time, and how the 'mini-boom' followed.

Hard to rationalize this really.

I'm looking for a sub 100k figure as a bearish bellwether.

You've all got it wrong. Realistbear told us the crash in prices has already started.

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Guest Charlie The Tramp

You've all got it wrong. Realistbear told us the crash in prices has already started.

Maybe that is the reason for the increase in mortgage approvals. :unsure:

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I've noticed an increased level of activity in Surrey, quick turn around in houses advertised and several FTB's at work that have jumped in; IO mortgages only I'm afraid, doh! A couple cited inflation as the thing they were relying on (however they have gone with fixed rate 5year deals so if they keep their job it could be ok?), looks like they will be feeling comfortable with that at least for the next few months. :blink: So this sort of news (high mortgage approvals) pans out with what I've seen on the ground.

It's all trouble though, more fuel to the fire. :o When will this end? Rates up in America, not a twitch from the BOE here and people keep on spending money they haven't got, and probably never will have. Just can't comprehend it. :unsure:

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Hard to rationalize this really.

And that's the heart of the matter, isn't it?

You can't really justify it, people are just being sucked into a bubble mentality. Still.

Go on Gordon, let it go Japanese, really leave your mark on Britain...

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This figure is getting more and more depressing every time its released :( The worst thing is that it is a delayed reaction to the housing market, so there are more increases to come i Guess.

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Mortgage approvals rise

"The number and value of mortgages approved in the UK rose in May, official data suggests, hinting at a market recovery after surprising falls in April.

Mortgage lending rose by £9.3 billion during May according to Bank of England figures, which is considerably above April's increase of £8.6 billion and the average £8.7 billion rise of the last six months.

In April the number of mortgage approvals fell to 106,000, its lowest value in 2006, but last month recovered to 117,000. ...."

See spline's/Kon's excellent posts for why this is bad news - basically, prices ain't likely to drop for the next 6 months or so on these figure. They indicate a pretty bouyant market.

Before all the usuall spiel, these are approvals for house purchase only. They are compiled by the BoE. They do not include MEW or remortgaging. Anything over 90k has always led to HPI around 6 months later. This is a very strong number.

:(

From the article ....

"The number and value of mortgages approved in the UK rose in May, official data suggests, hinting at a market recovery after surprising falls in April.

Mortgage lending rose by £9.3 billion during May according to Bank of England figures, which is considerably above April's increase of £8.6 billion and the average £8.7 billion rise of the last six months.

In April the number of mortgage approvals fell to 106,000, its lowest value in 2006, but last month recovered to 117,000. "

Where does is say - as you said "Before all the usuall spiel, these are approvals for house purchase only."?

How can one link this to the number of property transactions? i.e. to try and determine how busy the market is. The figures above refer to the UK - figures for housing transactions published by the Land Registry refer to England and Wales.

Edited by Marina

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You've all got it wrong. Realistbear told us the crash in prices has already started.

Lol

Maybe the crash will start in America first and then happen over here, like the DOW/FTSE. Or vice versa.

Did the chicken or the egg come first?

That might actually happen....

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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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