BSA: Mortgage lending down 90%

mystic_trev

Mortgage lending from building societies slumped last month, new figures have revealed.

Data from the Building Societies Association (BSA) shows that net lending was down from £1,262 million in May to £125 million in June.
This represents a decline of around 90 per cent.

Adrian Coles, director-general of the BSA, said: "The lending figures reflect the depressed state of the housing market.

"With 74 per cent of respondents to the BSA's property price tracker survey expecting property prices to fall over the next year, it is no surprise that demand for new mortgages remains low."

http://www.introducertoday.co.uk/News/Story/?title=BSA%3A%20Mortgage%20lending%20down%2090%25&storyid=18665259&type=news_feed

m00m00

while the bulls gently weep

Sir_Humphrey

I thought these figures looked a bit "suss", and so it proves. However, not in any way to offer much comfort for Bulls.

Journos are famously innumerate.

http://www.bsa.org.uk/keystats/mortgages.htm Download mortgage advances and approvals.

If you look at actual BSA lending, the fall is from £1,262m to £125m in May YoY (net lending). The source is the Bank of England.

Approvals halved in that time according to the same source.

This suggests to me much lower activity concentrated on those remortgaging with only small outstanding mortgages.

EDIT: Needless (?) to say this only applies to Building Societies.

baby_boomer

I love Adrian Coles. He'll say anything to support his beloved building societies - especially since they (we) pay his grossly inflated salary and gold plated pension.

This time it was something about

"not reading too much into one month's figures"

I wonder what he'll say next month :rotfl:

carolt

Sir_Humphrey wrote: »

I thought these figures looked a bit "suss", and so it proves. However, not in any way to offer much comfort for Bulls.

Journos are famously innumerate.

http://www.bsa.org.uk/keystats/mortgages.htm Download mortgage advances and approvals.

If you look at actual BSA lending, the fall is from £1,262m to £125m in May YoY (net lending). The source is the Bank of England.

Approvals halved in that time according to the same source.

This suggests to me much lower activity concentrated on those remortgaging with only small outstanding mortgages.

EDIT: Needless (?) to say this only applies to Building Societies.

Thanks for that.

Still 125 million in any context is quite astonishingly low for the whole of the UK! That would only buy you a couple of London streets! As you say, presumably there are NO first time buyers mortgaging themselves up to the eyeballs anymore; it's all people who bought 20 years ago renegotiating their (by now tiny) mortgages.

Big sigh of relief at the Building Societies, I'm sure - the fact that they don't WANT to lend any more should spell out more clearly than anything quite how badly they really think the crash is going to be. :eek:

baby_boomer

And the worse it gets, the less they are going to want to commit themselves until it is clear that the crisis is over.

Generali

I re-posted this. Sorry about that.

Seasonally adjusted, net lending is a negative figure - ie SA payments exceeded SA lending.

This strengthens the case for deflation IMO.