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Converted Lurker

Gross Mortgage Lending Falls By 32% Year On Year

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Gross mortgage lending declined to an estimated £23.8 billion in June, down 3% from May and 32% from June 2007, according to the Council of Mortgage Lenders...

The decline between the first and second quarter was a marginal 1%. However, an increase would typically be expected in spring. The year-on-year decline has gathered pace in recent months; lending in the first quarter of 2008 was down 11% on 12 months earlier, while the second quarter was down 21%.

http://firstrung.co.uk/articles.asp?pageid...rticlekey=10046

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So they're pritty much saying mortgage lending has fallen off a cliff do to soaring mortgage

rates and the fact that house prices have crashed £20,000 in ten months.

the cml avoid the glaringly obvious in each press release <_< . Mods just seen another thread on this subject (sorry) can we merge please? TIA

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can someone explain how mortgage lending can be down only 32% when mortgage approvals are down way more(dont know the figure off hand).Or am I missing something.

sure, it's gross, adds up re-mortgaging/mewing and approvals for house purchase. The fact that the big figure is now 32% down is actually massive massive news. Expect approvals for house purchase to fall to new record lows when announced next week. Roughly 50% down vis a vis this time last year. What's interesting (for me) re the gross figures is that all the cash that was 'in the system' ready to be lent, already secured/originated pre crunch, is now effectively used up; think Firstplus stopping lending etc. This surplus of already borrowed/arranged lending has now been allocated, lent to consumers. You're witnessing situation critical now, were there's hardly any new money coming on other than the balance sheet lenders - HSBC/Building societes...mortgage rationing IS HERE

Edited by Converted Lurker

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  • 399 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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