Thursday, Jul 20, 2006

Mortgage lending still very strong

BBC: June sees record mortgage lending

The council of mortgage lenders (CML) reports that gross mortgage lending reached 32.2bn in June making it the highest monthly figure on record. Lending was 11% higher than May and 30% higher than June 05.

Posted by denzil @ 10:38 AM (589 views)
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11 Comments

1. The Baldman said...

I wonder what the split was between re-mortgages and mortgages? Does anyone know where this data can be found?

Thursday, July 20, 2006 10:53AM Report Comment
 

2. Surfgatinho said...

With figures like this I can't beleive the MPC will sit around for another month with their thumbs up their jacksies! Every month they leave it is going to make the medicine a lot, lot worse

Thursday, July 20, 2006 10:59AM Report Comment
 

3. George Monsoon said...

I only have one thing to say..... MEW!

Thursday, July 20, 2006 11:31AM Report Comment
 

4. Ben Twilly said...

So - it looks like people are starting to wake up and smell the coffee.

Remortgaging to pay off credit cards maybe ?

Thursday, July 20, 2006 11:45AM Report Comment
 

5. waitingfor hpc said...

i am confused. Is this people moving debt from cards to houses? Why so busy i do not see the market like that at the mo?

Thursday, July 20, 2006 11:48AM Report Comment
 

6. Zag said...

The mortgage lending is just pointing towards higher prices and a very healthy housing market, exactly what I am seeing in my local area.

People are buying and selling all over the place.

Thursday, July 20, 2006 11:54AM Report Comment
 

7. Ohhyesitwill said...

Indeed I cannot see this happening in my local area either. I think people are just preferring to use MEW as a means of getting cash as opposed to higher interest credit cards. This article is confusing because it implies house buying is at record levels, but also says a lot of it was just MEW, in fact considering it is a BBC article it is pretty vague.

How do our interest rate rise predictors think it will go at at the next MPC meeting? Think they won't factor in the unusual high fuel costs because they are not 'Core' inflation items? If they are not core, why have they been consistantly high all year?

Thursday, July 20, 2006 12:31PM Report Comment
 

8. Nelson said...

Isn't it the remortgaging that pumps up the figures, and doesn't this demonstrate that people are now desperately moving lenders in the hope to control their mortgage repayments? Most mortgage rates I see are over 6% after the special offers, that's fairly high I think. ANd doesn't it also reflect the sheer size of mortgages being taken out - again in desperation and fear by anyone scared enough that they will miss out if they don't leap now? More useful to know would be how many properties this represents and what proportion are new to mortgages (genuinely their first buy).

Thursday, July 20, 2006 12:37PM Report Comment
 

9. Cmon Correction said...

Same here, house prices are still dead in the water in South Wales.
The BOE can not sit on their hands anymore - inflation up, house price inflation up (true or false), retail sales up, oil prices nowhere near the $40 a barrell everyone predicted. The fact is they and more importantly the Labour government have run the figures in their economic models, they KNOW that a 0.5% rise would lead to start of a big HP correction. They will flog the dead horse again and again.....

Thursday, July 20, 2006 01:22PM Report Comment
 

10. kpjcomp said...

Well if it's true, then it's most likely Second Time Buyers or Parents releasing there equity on there homes for there children. I see this as good news, because when prices start to come into normality, they will be less competition for when I buy my next house :). Even better if it's parents releasing there equity (A Big loan, with your house at risk), not only will it be people who have paid a trillion pounds for there home, but there parents house that will be flooding the market. I can't wait, but I will of course.

And if it's not true, and the information is missleading, well CML your are treading a fine line of commiting Fraud.!!

Thursday, July 20, 2006 01:54PM Report Comment
 

11. Bfskinner said...

it seems everyone has forgotten the halifax figures from last week then

BFS

Friday, July 21, 2006 09:32AM Report Comment
 

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