Tuesday, Aug 01, 2006

120,000 mortgage approvals in June

BBC News: Mortgage approvals rise in June

New mortgage approvals reached 120,000 in June, official figures have shown - the highest level for five months. The Bank of England (BoE) said that approvals were 3,000 higher than May's figure, although total new mortgage debt was slightly lower in June.

Posted by webmaster @ 10:46 AM (506 views)
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11 Comments

1. kpjcomp said...

Sinse these are only mortgage approvals, I wonder how many are people trying to get a deal setup before interest rates rise?.
Also does this figure include people who have re-mortgaged to release equity for paying bad debt?
I personally think these figures are pretty meaningless, and don't prove at all that "consumers seem more comfortable investing in property".

Tuesday, August 1, 2006 12:03PM Report Comment
 

2. George Monsoon said...

This sort of hype paints such a false picture of reallity. I find it so agrivating that Mr joe public will see this as a message that the housing market must be booming, when in actual fact almost all these new mortgages, are probably just MEW's to buy the owner out of their mounting credit card debt.!

So here is the Truth - I am a potential FTB, so I regularly keep an eye on the local EA's to keep a tab on prices.
Houses in my area are NOT going up. the EA's have been posting "revised price" notices in their windows for the last 18 months.- between 5 and 10% reduction on the original asking price - and get this, they still won't sell. I live in the Ribble Valley, which has been a hotspot of interest in the last 5 years where houseprices have almost trebled. This trend has gone into reverse.

I will not take out a mortgage because I cannot afford to repay what I would need to borrow in order to get my foot on the first rung.
That is my financial position now. What if the interest rates went up in the near future? or my lovely wife wished to have a baby, so could not work?

I say push the interest rates up a good 1 percent. stop inflation, correct the housing market and shove a few quid on my savings :O)

Tuesday, August 1, 2006 01:37PM Report Comment
 

3. George Monsoon said...

This sort of hype paints such a false picture of reallity. I find it so agrivating that Mr joe public will see this as a message that the housing market must be booming, when in actual fact almost all these new mortgages, are probably just MEW's to buy the owner out of their mounting credit card debt.!

So here is the Truth - I am a potential FTB, so I regularly keep an eye on the local EA's to keep a tab on prices.
Houses in my area are NOT going up. the EA's have been posting "revised price" notices in their windows for the last 18 months.- between 5 and 10% reduction on the original asking price - and get this, they still won't sell. I live in the Ribble Valley, which has been a hotspot of interest in the last 5 years where houseprices have almost trebled. This trend has gone into reverse.

I will not take out a mortgage because I cannot afford to repay what I would need to borrow in order to get my foot on the first rung.
That is my financial position now. What if the interest rates went up in the near future? or my lovely wife wished to have a baby, so could not work?

I say push the interest rates up a good 1 percent. stop inflation, correct the housing market and shove a few quid on my savings :O)

Tuesday, August 1, 2006 01:37PM Report Comment
 

4. harold said...

George, good points and I would agree about prices stagnating. However...

"...and shove a few quid on my savings".

Savings?! This government and the banks don't want thrift, if they did the amount allowed for tax-free savings would 1. be far higher, and/or 2. have risen with inflation (that is, no-risk ISAs). One can only conclude, therefore, that the economy is sustained by consumers spending - likewise banks' profits.

Tuesday, August 1, 2006 02:30PM Report Comment
 

5. Blindleadtheblind said...

read between the lines, more mortgages approved... but total mortagage debt lower/ credit card lending lower aswell...my take on this is that Mr & Mrs consumer is really in big trouble as they desperately try to reduce their monthly payments. Very soon these same banks due to the huge bad debt write offs will simply not lend to offer even this relief to those in too deep. Its sad, the social problems following this mess will be huge.

Tuesday, August 1, 2006 02:40PM Report Comment
 

6. George Monsoon said...

Harold, if this is the case, maybe it's time to get out of the UK..


...Taxi !

Tuesday, August 1, 2006 02:50PM Report Comment
 

7. inbreda said...

Has anyone else noticed that the daytime property programs are more and more frequently calling property "an investment", "a better investment than a pension", "a good retirement nest egg" 6 times in every sentence?

There is never any mention of homes or first rung of the ladder.

Do you think that in their desperation they realise the only support for themarket must come from BTLers?

Tuesday, August 1, 2006 03:35PM Report Comment
 

8. Northern Lad said...

...and exit the UK!

Tuesday, August 1, 2006 08:34PM Report Comment
 

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