Mortgage lending hits a new record low.

skap7309

Just 23,400 approved in January. The bull trap lives up to its name!

http://news.bbc.co.uk/1/hi/business/7939167.stm

Graham_Devon

skap7309 wrote: »

Just 23,400 approved in January. The bull trap lives up to its name!

http://news.bbc.co.uk/1/hi/business/7939167.stm

Aye. But if Maggie was leading, it would have been 23,356. So we'd have been worse off.

Cannon_Fodder

But there were all those green shoots in January...

Did they get frozen by the snow?

Really2

Do Cash buyer show up on mortgage approvals?

I know for a Fact my EA family member sold and is selling more than before.

But a lot are to investors for cash.

I think LIR said she was beeten to a house by a cash buyer.

No one said green shoots but from what I here house sales are up.

Dan:_4

This was not unexpected. January is always the weakest month of the year.

chucky

pretty sad state when people are not able to buy a home due to the bank not lending them money.

i guess they'll have to keep on renting and pay the landlords mortgage down.

Cannon_Fodder

Interesting chart of Approvals here;
http://www.nationwide.co.uk/hpi/historical/Jan_2009.pdf

This is shows that January is not just an isolated weak month. The whole of 2007 and 2008 fell off a cliff.


HBOS were cautiously talking about;

"Signs of an increase in activity albeit at quite a low level. Bank of England industry-wide figures show that the number of mortgages approved to finance house purchase increased by 15% in December. "

http://www.hbosplc.com/economy/includes/05_02_09HousePriceIndexJanuary2009v2.doc


It appears some have forgotton the optimistic Jan/Feb news reports;

http://www.napthens.co.uk/About-Us/News/Lancashire-estate-agents-report-increased-activity.aspx

http://www.rics.org/Practiceareas/Property/Residential/Market/hms_0109_r_100209.htm
"Confidence in the sales outlook turned positive in January,"

http://www.offplanpropertyexchange.com/news/2009/01/increased-activity-in-the-uk-housing-market/621


There may be some element of cash buying, but I doubt it can counter the entire 28% drop from Decembers approvals.

Nice sarcasm, Chucky!

chucky

Cannon_Fodder wrote: »

Interesting chart of Approvals here;
http://www.nationwide.co.uk/hpi/historical/Jan_2009.pdf

This is shows that January is not just an isolated weak month. The whole of 2007 and 2008 fell off a cliff.


HBOS were cautiously talking about;

"Signs of an increase in activity albeit at quite a low level. Bank of England industry-wide figures show that the number of mortgages approved to finance house purchase increased by 15% in December. "

http://www.hbosplc.com/economy/includes/05_02_09HousePriceIndexJanuary2009v2.doc


It appears some have forgotton the optimistic Jan/Feb news reports;

http://www.napthens.co.uk/About-Us/News/Lancashire-estate-agents-report-increased-activity.aspx

http://www.rics.org/Practiceareas/Property/Residential/Market/hms_0109_r_100209.htm
"Confidence in the sales outlook turned positive in January,"

http://www.offplanpropertyexchange.com/news/2009/01/increased-activity-in-the-uk-housing-market/621


There may be some element of cash buying, but I doubt it can counter the entire 28% drop from Decembers approvals.

Nice sarcasm, Chucky!

2007 and 2008 didn't have any QE

beingjdc

chucky wrote: »

pretty sad state when people are not able to buy a home due to the bank not lending them money.

i guess they'll have to keep on renting and pay the landlords mortgage down.

Hmm! What do I want to do this year, pay my landlord £15000 for a place to rent, or pay a bank £20000 for a place to own, and lose £50000 of capital into the bargain. Tricky choice!

leftieM

chucky wrote: »

pretty sad state when people are not able to buy a home due to the bank not lending them money.

i guess they'll have to keep on renting and pay the landlords mortgage down.

We renters tend to just pay the interest. The landlord can deal with the capital shortfall .

chucky

beingjdc wrote: »

Hmm! What do I want to do this year, pay my landlord £15000 for a place to rent, or pay a bank £20000 for a place to own, and lose £50000 of capital into the bargain. Tricky choice!

or buy a property at £150k (or less) and you have already factored in that £50k drop and then get a 10% yield on top of that. hmmm not such a tricky choice

and forgot to mention the tenant still paying down the mortgage