16,000 are being refused a mortgage each month

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16,000 a month, being saved from themselves, and who said the banks don't care.;)

In December 12,000 borrowers had their applications turned down but this has jumped to more than 16,000 since March. The figures emerged as fresh data from the Council of Mortgage Lenders revealed lending fell last month. Gross lending, including new purchases and remortgages, was £10.3bn, 2% lower than in April and 58% down on a year ago.

http://www.thisismoney.co.uk/mortgages-and-homes/article.html?in_article_id=487722

System

According to the CML, it is likely an improvement in new lending has been overshadowed by a slump in remortgaging due to stricter criteria and more attractive variable rates.

Pretty much what we've all been saying.

MrDT

Joeskeppi wrote: »

Pretty much what we've all been saying.

There's still 16000 refusals though.

New lending has apparently improved, does that mean that it's remortgage applications that are being binned?

Why?

Do the owners not meet the equity requirements?

chucky

once rejected how many applications did these applicants make - they could have had to make 3 applications before they got accepted

it's exactly like the number of people that showed interest in house buying at estate agents - the numbers aren't telling us very much.

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I think we've hit a bit of a stalemate at this time, RMBS is dead so mortgage lending has hit a brick wall, mortgage approvals have gone up on the back of reduced prices, this is becoming ever tighter, however it's being 'oiled' by QE at the moment, which will inevitably stop at some point, probably in time for the winter slowdown, the period between October and January will be quite interesting in the market, especially as unemployment will being kicking into the figures then.

mewbie_2

MrDT wrote: »

Do the owners not meet the equity requirements?

I think the new FSA mortgage lending rules require would be purchasers to have a pulse. This is a real change from the boom years.

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mewbie wrote: »

I think the new FSA mortgage lending rules require would be purchasers to have a pulse. This is a real change from the boom years.

That's true, there was many a time I saw corpses being wheeled into banks for mortgages, most of them got them as well.

Thrugelmir

MrDT wrote: »

There's still 16000 refusals though.

New lending has apparently improved, does that mean that it's remortgage applications that are being binned?

Why?

Do the owners not meet the equity requirements?

Valuations will be key to remortgaging.

Lenders can be selective as to remortgaging requirements. So NR , B&B, Woolwich and HBOS will be left with poor quality loan books. HSBC and Lloyds will retain and grow their better quality loan books.

bluey890

ad9898 wrote: »

16,000 a month, being saved from themselves, and who said the banks don't care.;)
http://www.thisismoney.co.uk/mortgages-and-homes/article.html?in_article_id=487722

I am responsible for 2,000 of them.

ciano125

We've got one!! :j

Technically FTB's (bought in 2005 and sold two years later, not much profit really though), both professionals with secure jobs, 15% deposit, good credit history, borrowing less than two times combined wage. That's bought us a three bed detached house with garage and gardens. Obviously we live oop north in God's own county!

We've been saving up for the past 2 years on top of having saved up to get married as well. Our mortgage is fixed for five years at 5.5% which in the grand scheme of things I don't think is too unreasonable, so even though prices may well go down over the next year or so, we're planning on overpaying the mortgage by as much as we can every month so that we're in the best possible position to remortgage when the time comes. I'll be stopping paying into the unit trusts that I've been paying into for the past ten years and putting that money into the house. When the unit trusts are worth what i've paid in (fingers crossed they will come back up, but fully accept this may take another ten years) that'll go into the house as well.

Have to say I wasn't sure that we'd get a mortgage though, in the end though, all they wanted to see was one bank statement showing my wage going in (not my wife's, they said mine was ok on its own). Calculating the amount that we'd borrowed, this means that the lender was prepared to lend nearly 3.5 times my wage.

Thrugelmir

ciano125 wrote: »

We've got one!! :j

Technically FTB's (bought in 2005 and sold two years later, not much profit really though), both professionals with secure jobs, 15% deposit, good credit history, borrowing less than two times combined wage. That's bought us a three bed detached house with garage and gardens. Obviously we live oop north in God's own county!

We've been saving up for the past 2 years on top of having saved up to get married as well. Our mortgage is fixed for five years at 5.5% which in the grand scheme of things I don't think is too unreasonable, so even though prices may well go down over the next year or so, we're planning on overpaying the mortgage by as much as we can every month so that we're in the best possible position to remortgage when the time comes. I'll be stopping paying into the unit trusts that I've been paying into for the past ten years and putting that money into the house. When the unit trusts are worth what i've paid in (fingers crossed they will come back up, but fully accept this may take another ten years) that'll go into the house as well.

Have to say I wasn't sure that we'd get a mortgage though, in the end though, all they wanted to see was one bank statement showing my wage going in (not my wife's, they said mine was ok on its own). Calculating the amount that we'd borrowed, this means that the lender was prepared to lend nearly 3.5 times my wage.

Why are you looking to remortgage already? I assume you mean that you'll fix your mortgage again with the same lender not necssarily transfer. Which doesn't count as an application for a mortgage.

Sounds like you timed the market perfectly.