Thursday, Dec 10, 2009

CML latest

FT: House purchases reach two-year high, says CML

The number of loans for house purchases reached 55,300 in October, the highest level since December 2007, according to the Council of Mortgage Lenders.
The amount of buyers has increased by nearly 100 per cent since hitting a trough in January when only 23,000 loans were advanced, the CML reported. However, it is not the same story for the remortgage sector where the level of loans has stayed static for two months at 33,000. Apart from a total of 30,000 in August 2009, remortgaging is at its lowest level for seven years, since the CML's records began in 2002.

Posted by jack c @ 10:23 AM (1728 views)
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1. Black Swan said...

"Michael Coogan, director general of the CML, said: "We are still in a two-speed mortgage market. It appears that low interest rates for those with substantial deposits, coupled with this year's sustained increases in house prices, are encouraging more people to buy or move home.

"But the same low interest rates that are driving house purchase activity provide little incentive for borrowers to refinance their loans. This, coupled with ongoing tightness in lending criteria, continues to hold back the remortgage market."

That doesn,t make sense to me...

Thursday, December 10, 2009 10:28AM Report Comment

2. smugdog said...

Quiet here this morning Jack, everyone must be out Christmas shopping, or can't be bothered.

'Ding dong merrily on high'

Thursday, December 10, 2009 11:10AM Report Comment

3. wiltshire said...

Based on the fact everything is completely fine with the economy (for the next six months at least), I guess that everyone is beating a path to the door of their nearest Estate Agent. I certainly am off there right now.........................

Thursday, December 10, 2009 11:25AM Report Comment

4. cynicalsoothsayer said...

Fear is easing off a bit. There may still be another round of job losses to come though.

Thursday, December 10, 2009 11:42AM Report Comment

5. doomwatch said...

Would imagine there's a few sickies been pulled on the desks this morning.

on topic:
"since December 2007" so still sh1t then.

Thursday, December 10, 2009 11:52AM Report Comment

6. phdinbubbles said...

The number of loans approved for house purchase increased by a whopping 2% to 57345 in October compared with 56205 in September according to the BoE.

Thursday, December 10, 2009 12:48PM Report Comment

7. timmy t said...

This is good news - the market needs activity in order to crash. C'mon smugster - tell me i'm putting crash spin on it...

Thursday, December 10, 2009 01:09PM Report Comment

8. smugdog said...

timmy T's an angry elf!

Thursday, December 10, 2009 02:03PM Report Comment

9. night said...

Although I've been a (fairly) long-time member of HPC (since 2006) I finally decided to buy. I could afford a decent house at 3.5 times my income multiple, and after doing the math on renting vs. mortgage I worked out it's still better to buy (even factoring massive price falls). We secured a decent discount too (-12%).

One of the main reasons that sales will be going up still is the stamp duty. We can save £1750 which would otherwise go straight into the gov's coffers, and which would eat into our deposit. I think there'll be a spike around December, January will have a few people who failed to complete before the stamp duty rise, and then February/March we'll start to drop again.

Chatting to mortgage brokers was interesting. One of the chaps I spoke to said nobody who'd bought in the last 3 years could afford to move. That was resulting in a massive restriction in supply (at least in our area, Solihull). Agents which used to have around 175-200 houses for sale now have around 30. Several homes which appeared to be available had been viewed and sold STC before we got chance to do an evening viewing.

I'm fairly happy: fixed rate for 3 years, planning to overpay for first two to clear down some debt. It's a nice house, one that I couldn't foresee us moving out of until we retire. Currently it appears we can afford it, and while it'd be a shame if circumstances changed to such a degree that we lost the house, it's not the end of the world.

BTW, thanks everyone for all the comments over the last few years : )

Thursday, December 10, 2009 02:21PM Report Comment

10. timmy t said...

Smugdog - yeah I am. I was happy enough when I sold around peak, but didn't account for the scale of market meddling that this government was prepared to do just to keep their voters happy. Since then I've seen interest on savings go through the floor and tax hikes to pay for bank bailouts that any idiot could see would become necessary. I'm fully expecting the crash to resume after the election. I'll give it six months and if it hasn't happened I'll leave the country.

Thursday, December 10, 2009 02:27PM Report Comment

11. crunchy said...

9. night .............. Keep dropping in. It's good to hear from the other side from time to time.

All the best with your new home in the Kingdom of Solihull. ; )

Thursday, December 10, 2009 03:13PM Report Comment

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