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Guest wrongmove

Mortgage Lending Bba, Cml And Bsa

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Guest wrongmove

Looks like people are still prepared to borrow vast sums of money. I have highlighted the figyres for net lending and approvals as these have the most impact on future prices. Gross lending includes remortgaging and MEWing.

BBA

Total sterling lending to the UK private sector showed a net underlying increase of £13.8bn (+1.1%) to £1,228bn. This was higher than last month's underlying rise of £12.6bn but lower than the average of £15.2bn over the previous six months.

Net mortgage lending rose by an underlying £5.6bn. This was slightly lower than the £5.8bn rise in May but higher than the average of +£5.3bn over the previous six months. In the first half of 2006 mortgage lending was some 18% stronger than in the equivalent period of 2005. Unsecured personal lending fell by £0.1bn in June, compared with an average rise of £0.3bn in the previous six months. Loans & overdrafts rose by £0.2bn, whilst underlying credit card borrowing fell by £0.2bn and has now declined in four of the last six months....

CML

Gross mortgage lending hit a new record level in June, reaching £32.2 billion, according to new data from the Council of Mortgage Lenders (CML). This is up from £25.7 billion last June, and is higher than the previous monthly record, set only in May, of £29.1 billion.

Lending usually strengthens in June reflecting the pick-up in house buying activity in the spring months, and the 11% month-on-month rise was broadly in line with previous June increases.

BSA

Building society gross advances amounted to £5,136m in June 2006, compared to £3,988m in June 2005.

Net Advances were £1,894m in June 2006, versus £1,350m in June 2005.

Approvals were £6,046m in June 2006 up from £4,327m in June 2005.

Building societies had net inflows of £657m compared to net receipts of £993m in June 2005.

Building Society net receipts to cash ISAs were £250m in June 2006, compared to £146m in June 2005.

Gross advances and net approvals are the highest June figures on record.

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Looks like people are still prepared to borrow vast sums of money. I have highlighted the figyres for net lending and approvals as these have the most impact on future prices. Gross lending includes remortgaging and MEWing.

BBA

Total sterling lending to the UK private sector showed a net underlying increase of £13.8bn (+1.1%) to £1,228bn. This was higher than last month's underlying rise of £12.6bn but lower than the average of £15.2bn over the previous six months.

Net mortgage lending rose by an underlying £5.6bn. This was slightly lower than the £5.8bn rise in May but higher than the average of +£5.3bn over the previous six months. In the first half of 2006 mortgage lending was some 18% stronger than in the equivalent period of 2005. Unsecured personal lending fell by £0.1bn in June, compared with an average rise of £0.3bn in the previous six months. Loans & overdrafts rose by £0.2bn, whilst underlying credit card borrowing fell by £0.2bn and has now declined in four of the last six months....

CML

Gross mortgage lending hit a new record level in June, reaching £32.2 billion, according to new data from the Council of Mortgage Lenders (CML). This is up from £25.7 billion last June, and is higher than the previous monthly record, set only in May, of £29.1 billion.

Lending usually strengthens in June reflecting the pick-up in house buying activity in the spring months, and the 11% month-on-month rise was broadly in line with previous June increases.

BSA

Building society gross advances amounted to £5,136m in June 2006, compared to £3,988m in June 2005.

Net Advances were £1,894m in June 2006, versus £1,350m in June 2005.

Approvals were £6,046m in June 2006 up from £4,327m in June 2005.

Building societies had net inflows of £657m compared to net receipts of £993m in June 2005.

Building Society net receipts to cash ISAs were £250m in June 2006, compared to £146m in June 2005.

Gross advances and net approvals are the highest June figures on record.

Doesn't this suggest a trend to MEW to centralise debt & borrow a bit over & place in ISA for when it gets a bit sticky.

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Doesn't this suggest a trend to MEW to centralise debt & borrow a bit over & place in ISA for when it gets a bit sticky.

That's exactly what it is as Merryn said would happen.

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IR rises worldwide have spooked the market into high levels of re-mortgaging. June sales of high end TVs also pushed up consumer borrowing and MEW:

http://news.bbc.co.uk/1/hi/business/5197706.stm

The CML said a seasonal rise in house buying and
high levels of
remortgaging
had led to the record-breaking month.

Fixed rate loans have been a hot number this summer as banks have encouraged borrowers to "protect themselves" against higher rates that will be coming.

In reality, mortgage lending was actually down and not up as the CML suggest--just a little spin from the VIs:

http://investing.reuters.co.uk/news/newsAr...BRITAIN-BBA.xml

Mortgage lending eases but still robust

Thu Jul 20, 2006 10:51 AM BST137

LONDON (Reuters) -
Underlying mortgage lending growth eased in June
from May's two-year high, British Bankers' Association (BBA) data showed on Thursday, but the figures still suggest the housing market is in buoyant shape.
Edited by Realistbear

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IR rises worldwide have spooked the market into high levels of re-mortgaging. June sales of high end TVs also pushed up consumer borrowing and MEW:

http://news.bbc.co.uk/1/hi/business/5197706.stm

The CML said a seasonal rise in house buying and
high levels of remortgaging had led to the record-breaking month.

Fixed rate loans have been a hot number this summer as banks have encouraged borrowers to "protect themselves" against higher rates that will be coming.

In reality, mortgage lending was actually down and not up as the CML suggest--just a little spin from the VIs:

http://investing.reuters.co.uk/news/newsAr...BRITAIN-BBA.xml

Mortgage lending eases but still robust

Thu Jul 20, 2006 10:51 AM BST137

LONDON (Reuters) -
Underlying mortgage lending growth eased in June
from May's two-year high, British Bankers' Association (BBA) data showed on Thursday, but the figures still suggest the housing market is in buoyant shape.

I love it when a plan comes together.

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Guest wrongmove

In reality, mortgage lending was actually down and not up as the CML suggest--just a little spin from the VIs:

http://investing.reuters.co.uk/news/newsAr...BRITAIN-BBA.xml

Mortgage lending eases but still robust

Thu Jul 20, 2006 10:51 AM BST137

LONDON (Reuters) - Underlying mortgage lending
growth
eased in June from May's two-year high, British Bankers' Association (BBA) data showed on Thursday, but the figures still suggest the housing market is in buoyant shape.

No RB, its just your spin as usual. Mortgage lending growth eased, not mortgage lending. Lending was up, not down. Your posts should carry a wealth warning. There are people out there who may take them seriously ! :)

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Guest Alright Jack

No RB, its just your spin as usual. Mortgage lending growth eased, not mortgage lending. Lending was up, not down. Your posts should carry a wealth warning. There are people out there who may take them seriously ! :)

I think RB has a point. Potentially!

If the rate of expansion proves to be slowing then that would indeed be a very dangerous sign that this thing is truly nearly over. The cr@p really hits the fan when the consumer can't afford to buy anything. At this stage, if there are no more avenues by which to expand credit, then the government will have to juggle the three balls:- borrowing, printing and, raising rates.

Can meddling with these three variables find a solution this time, or will the pound collapse? That is the big question! Given the unpleasant events of 1992 and given relative health of the economy at the time (oil $12, debt not too bad, reasonable twin deficits) it is hard to say with any certainty that the pound will make it. At the very least it will be much thinner :)

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No RB, its just your spin as usual. Mortgage lending growth eased, not mortgage lending. Lending was up, not down. Your posts should carry a wealth warning. There are people out there who may take them seriously ! :)

http://investing.reuters.co.uk/news/newsAr...BRITAIN-BBA.xml

The BBA said net mortgage lending rose by 5.6 billion pounds in June, down from a two-year high of 5.8 billion in May but still above the average 5.3 billion pounds increase over the past six months.

May = 5.8 billion

June = 5.6 billion

Therefore, the amount borrowed in June was .2 billion less than in May. Lending fell by a massive 200 million pounds <_<

The spin was from the VIs who failed to mention the BBA figures!

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The CML said a seasonal rise in house buying and
high levels of
remortgaging
had led to the record-breaking month.
[/indent
This is the over indebted that are struggling to wean themselves off thier MEW having been accustomed to borrowing so much and use their houses as ATM. Even in the face of rising prices, and the prospect of rising interest rates they are having to borrow - not to fund purchases but just to get by.

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And here's why...

UK June provisional M4 up 1.6 pct from May; M4 lending 20 bln stg higher

How much is the £ worth in your pocket?

How much of this money is remorgaging though???

Is fine to says morgage approavals were 5.6 million - means f all when its 5.6 million remorgages....except people trying to cover their debts or driving the country further into the red.

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Guest Charlie The Tramp

The CML said a seasonal rise in house buying and high levels of remortgaging had led to the record-breaking month.

Well that is no surprise after the massive TV advertising for consolidation of debts we have seen the past months. The productions would have won Oscars for the pure quality of the acting and storylines, they nearly convinced me that I should consolidate my debts if I had any. :D

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Guest wrongmove

http://investing.reuters.co.uk/news/newsAr...BRITAIN-BBA.xml

The BBA said net mortgage lending rose by 5.6 billion pounds in June, down from a two-year high of 5.8 billion in May but still above the average 5.3 billion pounds increase over the past six months.

May = 5.8 billion

June = 5.6 billion

Therefore, the amount borrowed in June was .2 billion less than in May. Lending fell by a massive 200 million pounds <_<

The spin was from the VIs who failed to mention the BBA figures!

Oh dear, oh dear, oh dear. You are one of those people who think that when inflation is falling, then so are prices ! :P This is very basic stuff RB. The rises are smaller (very slightly) but they are still rises !

Delboypass: the gross figure is mew + remortgaging + house purchase. The only one of these that matters to prices is house purchase. The net figure removes the remortgaging, but still includes MEW. The approvals figure is just for house purchase, and is the most imporatnt one.

The BoE approval figures are the most definitive and are due out soon, but the lenders figures have always corrlated pretty well with the eventual BoE figures.

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Oh dear, oh dear, oh dear. You are one of those people who think that when inflation is falling, then so are prices ! :P This is very basic stuff RB. The rises are smaller (very slightly) but they are still rises !

Delboypass: the gross figure is mew + remortgaging + house purchase. The only one of these that matters to prices is house purchase. The net figure removes the remortgaging, but still includes MEW. The approvals figure is just for house purchase, and is the most imporatnt one.

The BoE approval figures are the most definitive and are due out soon, but the lenders figures have always corrlated pretty well with the eventual BoE figures.

I am not so sure, to me the drop from 5.8 down to 5.6 reveals the start of a trendline. Anyway you cut it, 5.6 is less than 5.8 and the higher figure was before the lower one. The re-mortages are only reflecting the desperation of a market filled with people extended beyond their means. They are being hooked by the TV ads lulling people into a sense of security that by remortgaging they can roll all their debts into one simple repayment to the advertiser at some hideous IR that would have been classified as a Shylock Loan when fiscal responsibility was present in our economy.

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Guest wrongmove

Put it like this RB, a TV costs £100. Inflation is 10%. In one year, the TV costs £110.

Next year, inflation fell to 5%, that is prices only rose by 5%. The TV now costs £115.50.

So, rises in prices are less this year, but prices are still more.

A fall in the level of growth does not mean a fall in the value.

BTW, totally agree with you about tv ads. Saw one involving a lawn-mower and Ocean Finance last night. Criminal ! :huh:

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I'm sorry but why does anyone care what the gross mortgage lending value was. In a rising price scenario this will always increase since prices increased... that's old news.

What we want to know is the number of transactions, they highlight likely forward trends not past. This focus on the gross lending is a nonsense!

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Guest Charlie The Tramp

What we want to know is the number of transactions, they highlight likely forward trends not past. This focus on the gross lending is a nonsense!

I have noticed very few properties up for sale in my area which is very unusual. It has been like that the past six months.

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Guest wrongmove

I'm sorry but why does anyone care what the gross mortgage lending value was. In a rising price scenario this will always increase since prices increased... that's old news.

What we want to know is the number of transactions, they highlight likely forward trends not past. This focus on the gross lending is a nonsense!

That is why I highlighted the net figures and the approvals. Transaction data is due tomorrow.

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Yeah l'd like to know how many new mortgages are on houses by people that owned outright (equity release, retirement funding -SKI, and helping your kids get on the ladder?) Are there figures for that? Suppose they would be hard to detect as prolly not recorded.

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It is the number of loans that are important rather than the amounts (it indicates the demand for house purchase rather than current prices).

Because the population is rising and new homes are being built, the number of loans for house purchase should ALWAYS increase year on year under normal circumstances.

Look at the CML figures. Number of Loans for house purchase in 2005 was lower than any other year since 1996. Quarter 1 2006 is the 2nd lowest since 1998 (2005 is the lowest.) Unless we have a record July then Quarter 2 2006 is going the same way.

Don`t believe the hype from these organisations, and from some posters on here who should know better. Do your own research.

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Guest Charlie The Tramp

The BoE approval figures are the most definitive and are due out soon, but the lenders figures have always corrlated pretty well with the eventual BoE figures.

After a complaint to their webmaster here they are

lendind.pdf

lendind.pdf

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net approvals are the highest June figures on record - yes, but as house prices have gone up over the last few years and the population has been increasing..............Wonder what the lag will be before the IR hike kicks in - and the money markets are pricing in another IR hike before Crimbo - :-)

Edited by gruffydd

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After a complaint to their webmaster here they are

lendind.pdf

Its scarey to think that as many people(nearly) are re-mortgaging as mortgaging. £11 BILLION a month in re-mortgaging is a lot of money being pumped into the economy.

But, all this is not MEW and debt consolidation is it? Surely people changing mortgage companies to get better deals are also part of this total?

AFP

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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% +
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      • Even
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      • up 5%



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