Monday, December 1, 2008
Latest mortgage lending news
Mortgage lending dives to £459m
Net mortgage lending dived by nearly 70 per cent during October to just £459 million, the Bank of England has said. The figure is well down on September's £1.49 billion and only 6 per cent of the level for October 2007. The steep fall was driven by the ongoing shortage of capital banks have to lend.
Posted by gardeniadotnet @ 10:18 AM (837 views)
12 thoughts on “Latest mortgage lending news”
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Dissipated says:
Surely the problem is an ongoing lack of suicidal tits wanting to borrow?
mark wadsworth says:
“The steep fall was driven by the ongoing shortage of capital banks have to lend”???
As TC hints, isn’t the proper explanation that no FTB in his or her right mind wants to borrow to buy into a falling market?
mark says:
amazing, yet two agents on the wirral are claiming they are having bumper months of sales.. they cant stop the lies can they?
gardeniadotnet says:
No, tc, you are not wrong.
But for me these figures beg a different question:
What is the current business model for the money lenders if they no longer lend money?
mark says:
it could be very few people have the 25% plus deposits banks require now!!
gardeniadotnet says:
6. mark said… it could be very few people have the 25% plus deposits banks require now!!
If more people did have 25%, the requirement would be for a 30% deposit, and so on.
The banks simply don’t want to lend, full stop.
mark wadsworth says:
@ Gardenia, the banks’ “business model” has gone into reverse – they are now busy collecting as much as possible from outstanding mortgages and hoarding cash, the same as any other business.
bystander says:
TC the only fly in the ointment of your prognosis is the fact, pointed out by that chap from Societe General “We are going to see very poor numbers through for the next month or two but then I think we should see some modest improvement – partly because of low interest rates but also because of the very strong directives from the Government to get out there and lend.”…..and this will happen, as GB will want to call an election in April/ May next year (as has been raised on numerous occasions on this site), and he will be looking for evidence that it is all getting better before he does.
gardeniadotnet says:
8. mark wadsworth said…@ Gardenia, the banks’ “business model” has gone into reverse – they are now busy collecting as much as possible from outstanding mortgages and hoarding cash, the same as any other business
Mark, that’s no business model, that’s short-term life support.
renting2 says:
TC – “my reasoning here is that only the mortgage market dictates and holds up the house prices………..outside of that its cash…………BLOODY HELL”
The more I think about it the more I agree with this.Not only does this mean that the housing market will stagnate, but more importantly so will worker mobility. This will further shackle our ailing economy. Until it sorts itself out that is.
jackas says:
Every pound that can’t be borrowed gives a pound of my savings its purchasing power back.
I would gladly ban mortgage lending, at least then your quality of house would be proportional to your productive capacity.
Luckyjim says:
Ban mortgage lending ?
Add that to Wadsworth’s Land Value Tax and you’ve got yourself a manifesto fit for the Monster Raving Looney Party. Or UKIP.