Mortgage approvals plunge !!!

epz_2

Pobby wrote: »

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.

yes,last time labour were in charge they destroyed the economy, this time they had the most benign economy in decades and yet we are still ended up to our neck in debt with 5 million on the dole and sick.

never trust someone that says they can make your life better if you give them your money

Pobby

Hmm Thatch, can`t

ManAtHome

But do you run your own finances a la Thatch or a la troosers..?

IveSeenTheLight

mewbie wrote: »

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

The article states

Approvals for remortgaging in June accounted for a record 55% of all mortgages approved compared to just 19% for house purchase. Approvals for house purchase again fell to a record low and they continued to be well down on the same period a year earlier. Approvals for equity withdrawal & other purposes remained similar to the previous month.

Not sure what the other purposes was for

ultra10

Indeed so

mewbie_2

Pedants corner. The 26% is all equity release, whether its used to fund an extension, a buy to let purchase, plastic surgery, or help the kids with their purchase. So whatever the 'other purposes' are - it's not magic money, it has come out of the equity, and therefore could be covered by the term equity release. Other purposes makes it sound as though there is some grander reason, other than leeching the last few drops of equity before the whole thing collapses.

moderators note: finally some sense mewbie, though please remember you're on one caution already.

moanymoany

It would be refreshing to have the government take over the news and tell us how the world situation is affecting our lives, what is happening in the banking system and with mortgages. More importantly tell us what they intend to do to ease the effect on the population.

It reminds me of a story I read about the beginning of the war. German U boats were decimating the merchant fleet and with it much needed supplies. There was so much defeatist talk amongst the population that Winston Churchill decided to publish the real losses in the newspapers.

His cabinet were appalled. WC's reply was to tell them that the figures are so bad people will believe them, and they would not be as bad as the population were imagining. It worked.

Maybe there is a lesson there for Gordon to learn!

tonyE1

ultra10 wrote: »

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/07/23/bcnbba123.xml]

Mortgage approvals have dropped by almost a quarter in a SINGLE month to a record low ... !! :eek: ....The crash is well under way it would appear ..

How do you draw the conclusion that lower mortgage approvals => crash? Its not good obviously if you are an estate agent or mortgage broker but mortgage approvals are down because of a lack of credit, not because people aren't willing to pay - they can't, end of story.

drbeat

tonyE1 wrote: »

How do you draw the conclusion that lower mortgage approvals => crash? Its not good obviously if you are an estate agent or mortgage broker but mortgage approvals are down because of a lack of credit, not because people aren't willing to pay - they can't, end of story.

Ok lets see:

Banks offer 100% - 125% mortgages to anyone plus lots of people lie via self-cert. The end result is high housing demand and low supply. Do you get that so far? Ok...we'll continue:

Easy Credit = EVERYONE CAN GET CREDIT REGARDLESS OF ABILITY TO PAY BACK!

Now that things are going back to normal i.e. 3.5% salary plus 20% deposit, not everyone can buy a house. They have to wait, they have to save etc etc. That's what they used to do in the old days. Do you remember that? The old days were from 1992 to 1997 - housing wasn't really in demand back then as it was last year.

Sensible Credit = NOT EVERYONE CAN GET CREDIT.

So with the above said:

* of course they're buyers out there, everyone is a buyer of something. The difference is whether you can afford or want to buy...
* now that credit is not so easy - no such thing as "lack of credit" what you meant was LACK OF IRRESPONSIBLE LENDING - the "buyer" cannot afford to buy...they become the "dreamer" or perhaps the "saver"

Lack of house buyers with the means to buy results in LACK OF INTEREST in one's house that is up for sale - you either go bust or you knock your prices down in order to get interest!

Multiply the above by a couple of million people in such a situation - all clambering to get "the buyer" - and what you have is what is called A CRASH! People will panic or do anything to get the buyer!

OR those who purchased in 1992 - 1999 will simply not make a loss and put their properties on the market - undercutting those who bought in 2004 - 2007 and are desperate to sell their property! These people - those who purchsed in the 90s - will be happy to make a few quid, as opposed to the greedy sh1tbags that want to make the "profit"! These are the people who will suffer!

drbeat

epz wrote: »

yes,last time labour were in charge they destroyed the economy, this time they had the most benign economy in decades and yet we are still ended up to our neck in debt with 5 million on the dole and sick.

never trust someone that says they can make your life better if you give them your money

Doesn't matter who is in power! Unless there is a radical shake up of taxation and tighter controls on land speculation then this !!!!!! will go on and on and on!

The tories were in long enough to be bitten by this continuing cycle of misery. The same is happening to Labour - they were lucky enough to avoid the early 90s debacle thanks to the unelectable Kinnock. Had they'd got in -in 92 - they would been out on their @rses by 97 and it would be the Tories that would be taking us through this mess with an upcoming Labour victory on the cards!

The real price of a house - the house itself - hardly moves! It's the price of the land that goes up and down!