BOE - Mortgage Lending data weaker than expected

Graham_Devon

Hmmm. Now, that graph could indicate that the rise in property transactions were people buying in with cash, not needing a mortgage.

You know, all those people catching the "last boat" in the nice spring sunshine we had.

Now, the majority of people are needing a mortgage to buy instead of just cash, hence transactions going down, but mortgages continuing up?

chucky

Graham_Devon wrote: »

Hmmm. Now, that graph could indicate that the rise in property transactions were people buying in with cash, not needing a mortgage.

You know, all those people catching the "last boat" in the nice spring sunshine we had.

Now, the majority of people are needing a mortgage to buy instead of just cash, hence transactions going down, but mortgages continuing up?

i think that would show as the opposite effect - property transactions going up much higher than mortgage approvals

Thrugelmir wrote: »

Could be an indication of people applying for or booking fixed rates even though they haven't found a house to purchase.

yes it could be that and it makes sense as it wouldn't include remortgages as their volumes are currently very low.

my initial thoughts was due to the strictness of lending criteria now.
it also disproves the cash buyer theory as it would have an opposite effect.

Really2

More proof of how a falling figure is a sign of sentiment?

Remind me how house prices were last year and how many were purchased dec 2009?

100% proof of sentiment or just some market data?

chucky

Really2 wrote: »

More proof of how a falling figure is a sign of sentiment?

Remind me how house prices were last year and how many were purchased dec 2009?

100% proof of sentiment or just some market data?

it's been explained to him many, many times now... and he still doesn't get it...