BBA reports rise in mortgage approvals in May

inspector_monkfish

09:49 23Jun09 (GBP) BBA reports rise in mortgage approvals in May

(GBP) The UK BBA reports a rise in bank mortgage approvals to 31,162 in May, from 29,018 in Apr, a 7.4% m/m increase, and up 15.8% y/y, in contrast to -14.6% y/y in Apr.

Whilst this continues to reaffirm the ongoing improvement in housing market activity, what's puzzling is the fact that mortgage lending continues to ease, to GBP2.3bn in May (the weakest since early-2001), vs GBP2.5bn in Apr, and in contrast to GBP3.6bn in Feb.

This reinforces the observation made in the latest BoE lending survey which suggested there are frictions that could delay the impact of increased approvals on mortgage lending, with approvals often prone to cancellations before the lending is advanced.

mbga9pgf

Big cash buyers and buyers with mahoosive deposits then....

and what constitutes an approval? I have been ringing round loads of lenders getting mortgage quotes, does this count as an approval?

inspector_monkfish

09:30 23Jun09 UK MAY NET MORTGAGE LENDING SLOWS TO EIGHT-YEAR LOW - BBA

09:30 23Jun09 UK MAY NET MORTGAGE LENDING +GBP2.3B VS APR +GBP2.5B - BBA

09:30 23Jun09 UK MAY MORTGAGE APPROVALS 31,162 VS 29,018 IN APRIL - BBA

09:30 23Jun09 UK MAY GROSS MORTGAGE LENDING +GBP7.7B VS APR +GBP7.9B - BBA

09:45 23Jun09 UK May Mtge Lending Slows To 8-Yr Low Of +GBP2.3B

DJ DATA UK May Mtge Lending Slows To 8-Yr Low Of +GBP2.3B



LONDON U.K. mortgage lending slowed for the third straight month to an eight-year low in May, data from the British Bankers Association showed Tuesday.

However, the outlook may be improving as mortgage approvals picked up for a second straight month to a 13-month high.

Seasonally adjusted net mortgage lending grew just GBP2.3 billion in May.

That was the smallest increase since March 2001 and compares with a revised GBP2.5 billion increase in April.

A year earlier lending grew GBP4.0 billion, the BBA said.

Net mortgage lending in April was originally reported as rising GBP2.7 billion.

Mortgage approvals - a good forward-looking indicator for housing-market activity - totaled 31,162 in May, the highest number since April 2008 and up from 29,018 in April.

Approvals also rose above year-earlier levels for the first time since November 2006, data from the BBA showed. - In May 2008 approvals totaled 26,903.

"Steady monthly increases since last November have seen the number of loans approved for house purchase recover to levels seen in early 2008, although gross and net mortgage lending show a subdued wider mortgage picture," said David Dooks, statistics director for the BBA.

inspector_monkfish

mbga9pgf wrote: »

Big cash buyers and buyers with mahoosive deposits then....

and what constitutes an approval? I have been ringing round loads of lenders getting mortgage quotes, does this count as an approval?

no, i shouldn't think so...

mbga9pgf

Looks it to me...

MORTGAGE APPROVAL

Written notification from the mortgage lender to the borrower that approves the advancement of a specified amount of mortgage funds under specified conditions.

http://www.deenafaleiro.com/Glossary.php

Had plenty of those.... (3 in fact in the past month)

inspector_monkfish

mbga9pgf wrote: »

Looks it to me...

MORTGAGE APPROVAL



http://www.deenafaleiro.com/Glossary.php

Had plenty of those.... (3 in fact in the past month)

you said you had been 'ringing round' getting quotes
you didn't mention anything about 'written notification'

chucky

mbga9pgf wrote: »

Looks it to me...

MORTGAGE APPROVAL



http://www.deenafaleiro.com/Glossary.php

Had plenty of those.... (3 in fact in the past month)

so you've had 3 mortgage offers done this month... and 3 surveys done to get this written approval...

mbga9pgf

I have had 3 mortgages approvals in kind. 3 pieces of paper, saying you can borrow X thousand, based on a multiple of Y , for a property valued at Z.

Why would I need surveys for written approval? What else would I show an EA to prove I can buy a house at a set value?

chucky

mbga9pgf wrote: »

I have had 3 mortgages approvals in kind. 3 pieces of paper, saying you can borrow X thousand, based on a multiple of Y , for a property valued at Z.

that's not a mortgage approval or even a mortgage offer :rotfl:

mbga9pgf wrote: »

Why would I need surveys for written approval? What else would I show an EA to prove I can buy a house at a set value?

errrm, because that's what you need when you get a mortgage approval

inspector_monkfish

mbga9pgf wrote: »

I have had 3 mortgages approvals in kind. 3 pieces of paper, saying you can borrow X thousand, based on a multiple of Y , for a property valued at Z.

Why would I need surveys for written approval? What else would I show an EA to prove I can buy a house at a set value?

you should be proud that you are 3 of the 31,162....

if everyone, like your goodself, is getting more than 1 approval, does this mean that the true figure is alot lower?

mbga9pgf

chucky wrote: »

that's not a mortgage approval or even a mortgage offer :rotfl:



errrm, because that's what you need when you get a mortgage approval

Want to show me a link there chap?