Mortgage approvals plunge !!!

baby_boomer

The OP's figures are for the Banks.

Building societies - which make up around 18% of the market & aren't so badly affected by the credit crunch - may have taken up some of the slack.

However even mortgage approvals by BSs in May 2008 had halved compared to May 2007.

Although we continued to pile money into the BSs in May - so they do have money to lend, unlike the banks

However, I would expect the BS figures to mitigate the collapse shown by the BBA's statistics; they won't reverse it .

adr0ck

it will be very interested to see if the building societies took up the slack or not

IveSeenTheLight

Accept less approvals, but how many requests are there.
The reason I would be interested is that is the approvals dropping because they are rejected (sign of the credit crunch) or because there are less requests (sign of people holding off until there is stability)

baby_boomer

There are no figures for requests.

I agree that there is more than one factor at work - but the overall effect will be the same i.e. significant downward pressure on the housing market.

IveSeenTheLight

baby_boomer wrote: »

There are no figures for requests.

Pity as it could explain a little into why there is less approvals (credit crunch or borrower caution)

Dithering_Dad

BTLNEWbie wrote: »

They are just deciding what else they can ruin ie pensions.

They have already done that, in 2006:

http://www.thisismoney.co.uk/retirement/article.html?in_article_id=413695&in_page_id=6

They also announced that they were selling off the gold reserves, and not surprisingly the world gold price crashed. They sold it at a fraction of what they could have got if they had quietly sold it in bits and bobs over a longer time frame.

They have also bloated out the public sector with employees doing god knows what, because services don't seem to have improved.

This is what happens when Labour gets into government. It ALWAYS happens.

baby_boomer

Independent - Here's a further twist to the figures

"... just 19% [of these record low number of mortgage approvals were] for house purchase..." [As opposed to remortgaging [55% - a record high] and equity release.]

So - house purchase approvals were a record low percentage of a record low number of mortgage approvals :eek: :eek: :eek:

IveSeenTheLight

baby_boomer wrote: »

Independent - Here's a further twist to the figures

"... just 19% [of these record low number of mortgage approvals were] for house purchase..." [As opposed to remortgaging [55% - a record high] and equity release.]

55% remortgaging
19% new property purcheses

---

74%

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Where's the other 26%? Equity withdrawel and other purposes

mewbie_2

I read it as 26% equity release. After all its free money...

Pobby

Dithering_Dad wrote: »

They have already done that, in 2006:

http://www.thisismoney.co.uk/retirement/article.html?in_article_id=413695&in_page_id=6

They also announced that they were selling off the gold reserves, and not surprisingly the world gold price crashed. They sold it at a fraction of what they could have got if they had quietly sold it in bits and bobs over a longer time frame.

They have also bloated out the public sector with employees doing god knows what, because services don't seem to have improved.

This is what happens when Labour gets into government. It ALWAYS happens.

But do we really want the Tories back in again. Oh dear, would it not be nice if we had a real choice between political parties.