Monday, July 7, 2008
David Smith finally gets it!
"There comes a point when you just have to stand back in amazement. Last week, I reported that the banks had provided fewer than 28,000 new mortgages in May, 56% down on a year earlier. What was not clear then was that this was in the context of the banks themselves gaining market share. Full figures for new mortgages in May, courtesy of the Bank of England, showed an even bigger drop, 64%, to just 42,000 from all lenders. Getting a mortgage these days is becoming almost as rare as winning the lottery. These figures are worth setting in context. They are a third of the monthly number of mortgage approvals we saw in November 2006, when 129,000 were granted. So how low can they go? Will it be 30,000, 20,000 or none at all?"