Tuesday, December 23, 2008
BBC – Mortgage lending ‘shrinks again’
Mortgage lending 'shrinks again'
UK mortgage lending by the major banks has fallen sharply, with approvals for house purchases 60% lower than a year ago, figures show. The number of mortgage approvals for house purchases fell by 14% in November to a new low of 17,773, according to the British Bankers' Association (BBA). People remained worried about the effect of the slowing economy on their personal finances, the BBA said. As a result, the amount consumers are borrowing also remained subdued.
Posted by jack c @ 10:06 AM (1721 views)
14 thoughts on “BBC – Mortgage lending ‘shrinks again’”
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paul says:
I have no idea why the BBC overuses quotes. If the source is unconfirmed (therefore it is not known whther the statement in question is fact, they should do the legwork to find out.
Generally speaking though, I observe that they use quotes in vain attempts to remove legitimacy from statements as follows:
House prices ‘falling again’ vs. House prices rising again
little professor says:
Good point paul. See also:
Mortgage arrears ‘to hit 500,000’
UK house prices ‘to fall by 30%’
51ck-6-51x says:
The source is confirmed in the article as the British Banker’s Association (BBA) – here is the data:
http://www.bba.org.uk/bba/jsp/polopoly.jsp?d=145&a=15114
51ck-6-51x says:
^^oops missed the tag for my href:
The source is confirmed in the article as the British Banker’s Association (BBA) – here is the data:
http://www.bba.org.uk/bba/jsp/polopoly.jsp?d=145&a=15114
ontheotherhand says:
Actual number was 16,050 but they seasonally adjust it. Data is here http://www.bba.org.uk/content/1/c6/01/16/86/historical_time_series.xls
Average value of loan for house purchase is also an interesting number. As recently as March it was £158,000 and it has since dropped 26% to £116,700
51ck-6-51x says:
ontheotherhand:
yeah – I think the average loan value is a revealing number – it shows market sentiment (albeit only for a section of the market – that of the borrowing)
alan says:
Paul,
Robert Peston said on last night’s Panorama that when you have to break news which will have a big financial impact you have a responsibility over how you give out that message.
It seems there is now a body investigating how the media reported the Credit Crunch!
I think the word I would use is “massaged”.
mark wadsworth says:
Jack C, I take it that this a fair reflection of facts on the ground?
jack c says:
@ mark wadsworth (Tuesday, December 23, 2008 12:54PM) – I think it is a fair reflection of things in the mortgage market at present. I’ll post a few more articles up over the course of the day as the broken down figures filter through.
I guess you might want to knowwhat happened to my colleague with the 60+ BTL re-mortgages sitting on his desk from several months ago?
mark says:
hi all
have a good xmas and new year, i won’t be posting on here over next month i am in the states on business… anyway have fun, don’t forget to slate arsetz for me…..lol
have a good un
jack c says:
Good luck Mark – all the very best for a prosperous New Year – There is a bit of Azzetz Christmas cheer now on the main articles just for you !
mark wadsworth says:
@ Jack C, I’d nearly forgotten about them – yes of course we want to know!
jack c says:
@mark wadsworth – only 4 out of approximately 60 could be placed and as a result the business was wound up roughly 3 weeks ago – the two girls (office/admin staff) were paid off and the 2 partners went their seperate ways – they are both looking to sign up to a mortgage “network” so that they can effectively carry on in the business but obviously on a much reduced scale.
Not to put too fine a point on this matter – the mortgage market is currently fook*d and dont let anyone kid you otherwise.
uncle tom says:
This is an exceptionally low number, consistant with the lenders only writing loans against offers made some time ago. It appears that the govt bullying over interest rates has effectively resulted in a lending strike.
If anyone cares to trawl the archives, they will find that I predicted several years ago that the crash would be fuelled by the inability of lenders to advance funds; but I saw that as a consequence of bad debt and falling prices; not the consequence of a credit freeze and self-righteous politicians..