16,000 are being refused a mortgage each month

ciano125

Thrugelmir wrote: »

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.

I'm not looking to remortgage now, in five years time, but planning for the future now. If that means transferring to a different lender, so be it. We'll have to see who offers the best rates/fees etc at the time.

I'd like to say that we saw all this coming, anyone who says that is a liar though in my opinion. We didnt want to stay in the house we'd bought for much longer and aspired to better things. There was talk of the "credit crunch" and we thought that prices weren't going to get any higher, so decided to sell. Certainly more luck than judgement, but there was a bit of logic in our thinking!

Ultimately we're buying somewhere to live, the mortgage is only £50 a month more than the rent that we're paying on a comparable 3 bed house (although its a semi, its a slightly more desirable area). We want to trade up again in the future, so hopefully we can catch the next cycle, although I'm not sure lightening strikes twice in the same place!

Thrugelmir

ciano125 wrote: »

I'm not looking to remortgage now, in five years time, but planning for the future now. If that means transferring to a different lender, so be it. We'll have to see who offers the best rates/fees etc at the time.

I'd like to say that we saw all this coming, anyone who says that is a liar though in my opinion. We didnt want to stay in the house we'd bought for much longer and aspired to better things. There was talk of the "credit crunch" and we thought that prices weren't going to get any higher, so decided to sell. Certainly more luck than judgement, but there was a bit of logic in our thinking!

Ultimately we're buying somewhere to live, the mortgage is only £50 a month more than the rent that we're paying on a comparable 3 bed house (although its a semi, its a slightly more desirable area). We want to trade up again in the future, so hopefully we can catch the next cycle, although I'm not sure lightening strikes twice in the same place!

The best investment decisions are often down to common sense.

Pssst

If theyve been rejected then they are probably not seen as a good risk in the current climate. He who pays the piper calls the tune.

chucky

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

here are the actual numbers according to the Bank of England.
76% seems a reasonable acceptance rate for mortgage approvals - the number of 16,000 is more of a headline though.

http://www.bankofengland.co.uk/publications/other/monetary/mortgagelending.xls Chart 2.3

why report it now when mortgage approvals where less in January or even February - media VI all over again

Thrugelmir

chucky wrote: »

here are the actual numbers according to the Bank of England.
76% seems a reasonable acceptance rate for mortgage approvals - the number of 16,000 is more of a headline though.

http://www.bankofengland.co.uk/publications/other/monetary/mortgagelending.xls Chart 2.3

why report it now when mortgage approvals where less in January or even February - media VI all over again

Thanks for the post and link. Be interesting to look at this data again in 3 months time.

Yoshua

These 16,000 people every month will just have to be patient and then as prices fall eventually sellers will drop in line with what the bank will actually lend them.

It has to happen. The sooner the better.

chucky

Thrugelmir wrote: »

Thanks for the post and link. Be interesting to look at this data again in 3 months time.

no problem - take a look at the mortgage gross approvals info and then look at the breakdown. new lending is increasing whilst remortgaging is as expected decreasing. did you ask this the other day?

andygb

Yoshua wrote: »

These 16,000 people every month will just have to be patient and then as prices fall eventually sellers will drop in line with what the bank will actually lend them.

It has to happen. The sooner the better.

This is exactly the way I see the current situation. The banks are exercising more caution over applications - rightly so. If we revisit the days of reckless lending, then the combination of record low rates (which will rise again the the not so distant future), and house prices which have not reached a realistic "low", will result in a deluge of repossessions over the next few years - another boom and bust.
There are so many people earning less than £15K a year, the average property price has to come down. The other important factor, is rising unemployment, and the associated risk in lending.

Thrugelmir

chucky wrote: »

no problem - take a look at the mortgage gross approvals info and then look at the breakdown. new lending is increasing whilst remortgaging is as expected decreasing. did you ask this the other day?

Yes I did. So suggests remortgages are that being declined.

Net lending (advances less repayments) is at its lowest since 2001. And thats without allowing for inflation. So the housing market appears to be leveling off for the moment.

chucky

Thrugelmir wrote: »

Yes I did. So suggests remortgages are that being declined.

Net lending (advances less repayments) is at its lowest since 2001. And thats without allowing for inflation. So the housing market appears to be leveling off for the moment.

very much so - seems a bit flat even though it's increasing slightly each month, so people must be repayong debt.

my assumption would be that people are not remortgaging as they're happy to be on their SVR for now and that applications are being made at higher levels and surveys are coming back lower and so being rejected.