Tuesday, July 8, 2008

CML reports slight increase after the battering in April

Lending for house purchase lifts but remortgaging drops

OFFICIAL PRESS RELEASE: Lending for house purchase increased slightly from April to May, according to the Council of Mortgage Lenders. Loans for house purchase increased by 4% in volume and by 2% in value; although both were 44% lower than May last year. However, there was a steep decline in remortgaging, down 14% since last month and 23% since last year. The value of remortgage lending declined by 13% since last month. --- NOTE: All figures relate to May 2008, not June 2008. These are lagging the Nationwide index.

Posted by drewster @ 12:24 PM (496 views)
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One thought on “CML reports slight increase after the battering in April

  • Timwest100 says:

    According to the CML the average first time buyer earns £35000 and borrows 3.3x salary to buy and average house of £162,666.

    Now it depends on what they mean exactly, but if £35000 is one persons salary, that is a pretty high salary to be a requirement to get on the housing ladder. I doubt 10% of people earn more than this, let alone first timers.

    If they mean a combind salaray, this is more realistic, however this would then mean that the mortgage is about £115,500, leaving the deposit a whopping £47,166. nearly 30%.

    Now, I have trouble believeing this is the average for first time buyers. Surely someone earning £35000 would take at least 5 years to save £47000 if they were sensible enough to save this amount in the last 5 years, why would they buy now at the top of the market?

    I just can’t believe the figures, Have I missed something? They just don’t add up right. I would expect these figures to be at the top not the average first time buyer.

    The only thing I can think of is that Mum and Dad have taken the deposit out of the equity in their home, however if this is the case, surely there would be far fewer first time buyers as a proportion to equity withdrawl and moving mortgages, as for most fist time mortgages, there would be a re-mortgage to pair to it.

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