Mortgage Lending and Approvals higher in June - BBA

Graham_Devon

Andrew Montlake, director of mortgage broker Coreco, was not convinced that there had been a significant shift in the housing market.

"Some recent mortgage figures, including the BBA's, have led some to suggest things are finally beginning to pick up, but I don't buy it," he said.

"From where I am standing, the next few months are still going to be exceptionally difficult for borrowers and this will only change once the lenders begin to lend - and they are still not lending at levels sufficient to drive a sustained recovery in the property market."

The average value of a mortgage being approved by the major banks stood at £136,400, nearly 11% lower than a year earlier - reflecting falls in house prices. Gross mortgage lending rose slightly, the first increase since April 2008.

The last paragraph kind of sums up what people are saying about cheaper houses. Wonder how this will correlate on the index's?

Really2

Graham_Devon wrote: »

[ Gross mortgage lending rose slightly, the first increase since April 2008.
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The last paragraph kind of sums up what people are saying about cheaper houses. Wonder how this will correlate on the index's?

Gross is irrelevent to house purchases (but it going possitive shows how much new lending as increased as remortaging as slumped due to the low rates).

More people look to have purchased in June than any time in the last 15 months (due to new mortgages increasing).
Mortgage approvals by the major banks increased to a 15-month high in June, according to the British Bankers' Association (BBA).
Some 35,235 mortgages were approved for house purchases in June, up from 31,919 the previous month, the BBA said.

That is fairly signficant has transactions need to increase to get things towards normality again.

So yes a mortgage man may think it is no improvement as the re-mortgages have slumped, but is remortgaging anything to do with new transactions?