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approved mortgages levels fall, plus unsecured debt up..
lemonjelly
Posts: 8,014 Forumite
http://news.bbc.co.uk/1/hi/business/8280030.stm
Interesting...
& of course this is merely approved mortgages. Not sure what this will say for actual mortgage lending, but to see approvals down is, to me, relevant in how lenders view the current state of the housing market.
This could prove to be telling combined with the 0.1% fall. Some commentaters are saying that house prices are now at a "plateau". I'm sure there are others - perhaps one or two on here - who might argue this is the middle peak of a "W"?
The article also states that personal/unsecured debt increased. My opinion on this is that people are supplimenting income/ongoing costs by unsecured borrowing (this may be in order to meet ongoing liabilities), & if this turns out to be the case it highlights that many have been/are living beyond their means, that personal debt is a real issue we need to resolve, and that owing to many "robbing peter to pay paul", it will only be a matter of time before something gives, and defaults start. Of course, this is also in a time when credit is more expensive than it has been.
So much for people paying down their debts...
Thoughts?
Interesting...
& of course this is merely approved mortgages. Not sure what this will say for actual mortgage lending, but to see approvals down is, to me, relevant in how lenders view the current state of the housing market.
This could prove to be telling combined with the 0.1% fall. Some commentaters are saying that house prices are now at a "plateau". I'm sure there are others - perhaps one or two on here - who might argue this is the middle peak of a "W"?
The article also states that personal/unsecured debt increased. My opinion on this is that people are supplimenting income/ongoing costs by unsecured borrowing (this may be in order to meet ongoing liabilities), & if this turns out to be the case it highlights that many have been/are living beyond their means, that personal debt is a real issue we need to resolve, and that owing to many "robbing peter to pay paul", it will only be a matter of time before something gives, and defaults start. Of course, this is also in a time when credit is more expensive than it has been.
So much for people paying down their debts...
Thoughts?
It's getting harder & harder to keep the government in the manner to which they have become accustomed.
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Comments
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Demanufacture I see where you're coming from, & not too long ago I was in the stagnation camp. My feelings now though are that there is a real possibility of falls. QE hasn't filtered through, unemployment is rising (& I suspect it will continue to rise), & the personal debt issue has not been addressed.It's getting harder & harder to keep the government in the manner to which they have become accustomed.0
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Approvals have dipped by 91, but this is a little misleading.
Every month the BoE revises up the previous months numbers by around 1500 to 2000, as late returns are received.
July was revised up by a higher than average 2300, but August's decrease is based on the newly revised July figure, not the one previously published.
When they similarly revise August's figure, it will be higher than July's by circa 1000/1500.
It looks as though BoE approvals have to rise by at least 2000 to avoid financial jounos claiming a fall has taken place.0 -
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Whoops!
Teach me to search better in future (ie beyond 1st page!)
Thought it was odd there was nothing on this....
Hope IM doesn't come after me now - wouldn't want to make him angry...:oIt's getting harder & harder to keep the government in the manner to which they have become accustomed.0 -
It's interesting that completions may be stabilising at much reduced levels and also fairly predictable. If securitisation remains not an option and so funds available to be lent have fallen then either house prices or number of loans must fall. House prices aren't falling so number of mortgages must.0
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US housing: it's not a bubble
Moneyweek, December 20050 -
Demanufacture wrote: »I definitely believe the bit I've highlighted to be true, stagnation for a considerable period is the best outcome for the housing market at the moment, with further falls the being the downside (not for FTB'rs I might add, only for people who wish for HPI). As far as unsecured debts go, I do know people who are using them to survive. The picture going forward is far from clear, not a particularly good time to get yourself 25 years worth of debt on a mortgage, but that's just my opinion.
nice sound bites - but they dropped by a massive amount of 87 mortgage approvals in probably the traditionally worst month - August. sounds like a crisis!!!
to be fair your post will probably get you some Thanks0 -
Debt going up could merely be happening on the back of a "recovery" which is always being talked about in the media etc. People start thinking everything is ok again, let's get back to normality, of which, normality has been ever increasing debt. It's been encouraged by the government even, through talk and incentives to get us spending.
Surprised me though, as I thought we were finally getting on track to actually sorting out the massive debt problem.0 -
The point that a lot of posters seem to be missing (and apparently many Governments too) is that debt isn't falling because people don't want to borrow, it's because the banks don't have the money to lend.
In this case it doesn't matter what the media and Government say about people going out to spend, spend, spend. If the banks don't have the money to lend then it can't be spent.0 -
The point that a lot of posters seem to be missing (and apparently many Governments too) is that debt isn't falling because people don't want to borrow, it's because the banks don't have the money to lend.
In this case it doesn't matter what the media and Government say about people going out to spend, spend, spend. If the banks don't have the money to lend then it can't be spent.
But the OP wrote this
The article also states that personal/unsecured debt increased.
I also feel that many parts of the market are stagnant because mortgage holders don't wish to lose their low trackers and discounts.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
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