Jump to content
House Price Crash Forum
Sign in to follow this  
Realistbear

Mortgage Lending Down 3 Qs In A Row - F. T.

Recommended Posts

http://www.ft.com/cms/s/b6350ff8-3e86-11dc...00779fd2ac.html

Financial Times

Home lending stays strong in June
By Scheherazade Fontainbleu Daneshkhu, Economics Correspondent
Published: July 30 2007 11:36 | Last updated: July 30 2007 11:36
Mortgage lending remained strong in June but there were still signs of a loss of momentum in the housing market, according to Bank of England figures published on Monday..../
Nevertheless, the overall total of 337,000 in the second quarter of 2007 was down from 350,000 in the first quarter and 368,000 in the fourth quarter of 2006..../
Peter Newland of Lehman Brothers said the decline in approvals from both banks and building societies, implied an increase in approvals from “other specialist lenders”.
He said: “This may hint at a further relaxation of credit conditions in the face of rising base rates and, for some policymakers, may be worryingly reminiscent of the US experience, where loans from non-conventional lenders remained strong in the face of higher interest rates and slower activity among more conventional lenders.”
:o

Chart anyone? Spline is the master of the charts.

Bottom line, the trend is down and the sheeple are turning to shylocks as things get more and more desperate. With house prices reversing it can only get bleaker from here.

Share this post


Link to post
Share on other sites

He said: “This may hint at a further relaxation of credit conditions in the face of rising base rates and, for some policymakers, may be worryingly reminiscent of the US experience, where loans from non-conventional lenders remained strong in the face of higher interest rates and slower activity among more conventional lenders.”

Lenders started relaxing their criteria almost immediately after the 2005 rate drop, don't believe any of this bull, the BOE are primarily responsible for it, in a rush to compete with each other the lenders for a new rush in lending to a certain extent the lenders had no choice, they'd already strecthed their existing criteria as far as the market would go. A new upshift in prices needed ever higher borrowing. It continues becuase the BOE show no sign of an intetn to stop inflation or indeed growing debt, they are trickling rates up hoping to merely slow it down and hope that people don;t realise whatthe true level of inflation is. They want the game to continue and as such the lenders will continue to relax their criteria as the market races away.

Systemic failure in inflation targeting and banking/economic policy.

Share this post


Link to post
Share on other sites

Approvals for house purchase NSA

Banks down 10% YOY

BS down 21% YOY

Specialist up 18% YOY

That's where the slack is being taken up

I cannot find a breakdown of the lenders included in 'specialist' anyone have the data?

Share this post


Link to post
Share on other sites
Approvals for house purchase NSA

Banks down 10% YOY

BS down 21% YOY

Specialist up 18% YOY

That's where the slack is being taken up

I cannot find a breakdown of the lenders included in 'specialist' anyone have the data?

Ignore the noise, these are appaling level of debt take-up whever they are being sourced. Compare what is happening now not to the last few months or quarters, make comparisons with years ago. Truly, truly assinine policies have been followed.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 355 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.