Thursday, September 18, 2008

New lending down by 12% from July and 36% lower than in August last year

Mortgage lending slumps in August

Mortgage lending continued its downward spiral in August, according to the latest figures from the Council of Mortgage Lenders (CML). The total value of new lending was £21.8bn, down by 12% from July and 36% lower than in August last year. The CML said it was the lowest monthly figure since April 2005 and the lowest August figure since 2002. It blamed the continued fall in mortgagee lending on "exceptionally low housing market turnover."

Posted by jack c @ 10:30 AM (944 views)
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9 thoughts on “New lending down by 12% from July and 36% lower than in August last year

  • “It blamed the continued fall in mortgage lending on “exceptionally low housing market turnover.””

    To think – someone is paid a salary to come up with that insight.

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  • They’ll be blaming low lending on people not borrowing so much next. Good thing we have the CML to explain everything to us.

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  • It blamed the continued fall in mortgagee lending on “exceptionally low housing market turnover.”

    That makes a change. It normally blames the shortage of lending on the “lack of innovation” in the financial markets. It probably feels now is not a good time to say that.

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  • Mortgage lending is still higher than I would expect:

    – Lowest monthly figure since April 2005
    – Lowest August figure since 2002

    Given the dire state of the financial markets and the UK property market, mortgage lending should be much lower than August 2002. There is still room for much greater declines in lending.

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  • It will be interesting to see what happens when LTSB/HBOS have a domininant 30% ish market share – I already have several mortgage brokers telling me they might as well pack up and go home.

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  • tyrellcorporation says:

    Traditionally LLyds/TSB are very conservative too and haven’t gone as berserk as the other banks. They’ll be demanding bigger deposits and lending at much lower multiples – Mmmm, almost like ‘proper’ banking then?

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  • “Lenders are uncertain about future sources of funding and the cost of funding, while consumers are unsure about how much further and for how long house prices will continue to decline.” actually means “Lenders are certain that future sources of funding will be scarce and expensive, while consumers are sure that house prices will continue to decline.”

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  • What TC and TT said!

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  • Come on!

    This has to be one of the best bits….

    “……And although August is always a fairly quiet month, it could be a few months before things start to pick up given the events of the past few days,” he added.

    A FEW MONTHS!!!!!!!! Is this bloke for real???

    How does it go again??? MUWAHAHAHAHAHAHA

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