Mortgage Lending Up 4% - CML

adr0ck

The number of house purchase loans ticked up in February, according to new data from the Council of Mortgage Lenders. There were 24,300 house purchase loans worth £3.1 billion, compared with 23,400 loans worth £3.1 billion in January - a 4% increase. But historically activity remains very weak, running at around one-third of the average February total of 76,000 loans for house purchase between 2002 and 2007.
Remortgaging declined steeply with 35,000 remortgage loans, down from 44,000 in January- a 20% decline. We expect demand for remortgaging to remain muted as lenders' standard variable rates are attractive compared to new mortgage pricing, and house price falls continue to erode equity levels which will exclude some borrowers from the best remortgaging deals available to those with large deposits.

http://www.cml.org.uk/cml/media/press/2218

lostinrates

This correlates with the anecdotals and feeling IMO.

Really2

Lies and statistics.;):D

mbga9pgf

Really2 wrote: »

Lies and statistics.;):D

Average loans down 3.8% month on month.


Thats going to do wonders for house prices!

ad9898_3

Them 900 extra loans are going to work wonders on the property market:D, also it's interesting to note the 20% decline in remortgaging, although I understand that some will choose the SVR as it's cheaper than the deal they are coming off in the short term, but what percentage can't remortgage because of the crash and the erosion of equity ?

The government really is going to have to do all in it's power to fudge the inflation figures because if rates have to rise soon I can imagine the housing collapse we have seen so far will seem like small beer. Imagine base rate at say 3% and all those newly taken out trackers jumping to around 6%, and worse still SVR's at 7% +.

I really do hope for their sake that any FTB'r who has been sucked in to the market at the moment has taken a 10 year fix, I somehow though, suspect that won't be the case.

Really2

mbga9pgf wrote: »

Average loans down 3.8% month on month.


Thats going to do wonders for house prices!

What? I make 24,300 higher than 23,400.

Are you on about re-mortgages? Is that a surprise that is lower with many SVR's lower than any other products.

I think you are looking to far for a negative on that one, With IR's so low of cause re-mortgaging is going to be low.

adr0ck

mbga9pgf wrote: »

Average loans down 3.8% month on month.


Thats going to do wonders for house prices!

you need to take into account that people have bigger deposits

This decline reflects the change in house prices over the same period and the growth in the size of first-time buyer deposits.

SingleSue

24,300 may be higher than 23,400 but the actual amount loaned over the difference is the same.....3.1 billion.

So no extra money loaned out than last month.

adr0ck

SingleSue wrote: »

24,300 may be higher than 23,400 but the actual amount loaned over the difference is the same.....3.1 billion.

So no extra money loaned out than last month.

still not enough credit in the market

going to take a while to return

ad44downey

I'd imagine that the mortgage drought will continue until house prices reach an affordable level. Lowering interest rates and the government strongarming banks to loan merely delays matter and prolongs the pain

ad9898_3

Really2 wrote: »

Is that a surprise that is lower with many SVR's lower than any other products.

I guess people never learn, they are missing out on probably the best long term fixes that will ever likely to exist within the next couple of decades, yet they see the short term headline figure and think 'whoopy doo', IR's have never been so low, and there is only one way from here on, and all this on a loan that normally lasts 25 years. Staggeringly short sighted.