Monday, September 20, 2010

And the bad news just keeps coming

UK mortgage lending slides to 10-year low

UK mortgage lending fell to a 10-year low of £11.4bn in August, further reinforcing fears that the recovery in the housing market is fading.

Posted by mark @ 11:28 AM (2562 views)
Please complete the required fields.



15 thoughts on “And the bad news just keeps coming

  • Looking at the CML commentary, their tactic is pretending that they saw this coming and so it is not really news.

    “The second half of 2010 was always going to be challenging…It is no real surprise that the tone of some of the recent economic data and commentary has been rather downbeat”

    Hmmm. Not surprising? Really? 5 months ago in April they said, “the outlook is for a gradual improvement later in the year”, in March they said, “It is difficult to pick out underlying trends in the housing and mortgage markets at the moment”, and in January they confidently made predictions, “The start of the New Year brings some reason for optimism. 2010 will almost certainly be a better year than 2009.”

    Reply
    Please complete the required fields.



  • “fears”???? “hopes” more like 🙂

    Reply
    Please complete the required fields.



  • So where’s the bad news? 🙂

    Reply
    Please complete the required fields.



  • Looking at the CML commentary, their tactic is pretending that they saw this coming and so it is not really news.

    The CML are absolute buIIsh*tters – always have been.

    Reply
    Please complete the required fields.



  • RE ontheotherhand @1

    There are loads of commentators that would love that sort of research – it would make any CML rep very nervous under interview conditions..lovely

    Reply
    Please complete the required fields.



  • Assuming this trend continues, we will end up in a situation where house prices are substantially cheaper but getting a mortgage to take advantage of that will be very hard unless you have loads of cash and a spotless credit history.

    Reply
    Please complete the required fields.



  • good, surely thats how mortgages should be ?

    Reply
    Please complete the required fields.



  • Ontheotherhand

    Observations such as yours above is why I love this site.

    It’s all in the detail.

    Reply
    Please complete the required fields.



  • Re Quiet Guy @5…

    “…… but getting a mortgage to take advantage of that will be very hard unless you have loads of cash and a spotless credit history.”

    ….that’s the historical norm, unfortunately – you can’t have loose credit and stable prices…..we’ve got to decide which is better. In my day, there was a face to face with the Branch Manager

    Reply
    Please complete the required fields.



  • ontheotherhand,

    Nice find, thanks!

    Reply
    Please complete the required fields.



  • Given unlimited money printing – oops sorry QE! – there is no reason why the average house price shouldn’t eventually be £10m or £100m.

    The fact that the economy would have been devastated in the process completely escapes the ‘experts’ at the CML.

    In their crazed world rising house prices = good news; falling prices = bad news. No exceptions. Pay them no heed.

    Reply
    Please complete the required fields.



  • 11. peter

    A wheelbarrow or a cashless chipped society?
    I can assure you whichever one you pick, that isn’t going to happen.

    This boom and bust marks an end of an era. There will be much more efficient ways to transfer wealth in the future.

    DOMINATION.

    Reply
    Please complete the required fields.



  • @Frosti2k2 & braindeed

    Agreed. Bringing back responsible lending is necessary and desirable.

    The reason I brought this up is that I’m wondering just how bad mortgage rationing could get when house prices fall. You already need about 25% to get the best deals. Just as bankers went stupid and loaned in excess of 100% LTV during the height of the boom, will they overreact on the way down and make getting a mortgage very difficult?

    Reply
    Please complete the required fields.



  • quiet [email protected] said…
    ” will they overreact on the way down and make getting a mortgage very difficult?”

    Guaranteed

    Reply
    Please complete the required fields.



  • There is obviously a delayed reaction in the housing market in regards to lending and the affect on people and the price they put their properties on the market for. If these figures are correct and the lending is at a 10 year low…. then how can the market remain level? We should see a significant decline over the Christmas period – coupled with the lay off’s that are occuring in the public sector we should see a signficant reversal in the market… and this could be the spark that starts the big down turn.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>