Mortgage lending up again, rises by 2%

chucky

Really2 wrote: »

Bottom is discount from peak in my eyes. I would argue the bottom may have been August last year. :)

But until next year is over I am not going to say for sure when the bottom is/was.

agree with you but taking that a bit further... bottom would be where the total cost of a house would have been cheapest - so... Feb this year when mortgage rates were cheapest...

Really2

chucky wrote: »

agree with you but taking that a bit further... bottom would be where the total cost of a house would have been cheapest - so... Feb this year when mortgage rates were cheapest...

My lifetime tracker disagrees :) (well at the moment)

bumpoowee

Great, I was starting to worry our economy was struggling due to a lack of debt.

ruggedtoast

nollag2006 wrote: »

:j
As for houses being affordable to previous generations, ask your parents or relatives how much easier it was for them with much lower disposable income to cobble a deposit together, to pay double digit interest rates, or to even obtain a mortgage. It is a complete fallacy to believe that things were easier for previous generations.

We live in peculiar times. Many people my age are witnessing the spectacle of their parents doing cartwheels in the street because their average 3 up 3 down that they bought when they were a young couple, is now worth more than they had ever dreamed, and more than their children can pay in their 30s with 'good' jobs.

At the same time those parents are losing sleep over how they will pay for their retirement because their house will only keep them out of nhs care for a few years if they get full market value and their pension fund has tanked.

Things that should be expensive, like flying half way around the world, buying a new tv, or eating exotic restaurant food, are cheap, and things that should be cheap, like housing or getting on a train, are expensive.

Its disheartening if youve studied hard, saved, got a decent job, and done everything you were meant to to avoid the dreaded "job in a supermarket" your teachers warned of. And then when you look at what you can afford the only places on your list are council estates, where you can buy at 6 times your income from a chav who's never paid a penny of tax and cleaned up with right to buy.

Peculiar times.

Emy1501

IveSeenTheLight wrote: »

The 2% increase is for overall lending
FTB in August was 19,700
FTB in July was 20,400
So technically FTBers were down 3.5% in the month.
July was +18% on FTB activity from June

Remember these are actual figures, it is not a seasonally adjusted index

My post had 2 points, comment about FTB's including people who STR'd was one point. The second point was that lending was down compared to July not by much of course but I cant see how these figures are great.

IveSeenTheLight

ruggedtoast wrote: »

We live in peculiar times.

Times at when property is more affordable now than they were over the last 26 year average

The last time they were this affordable (in terms of mortgage payments as a percentage of income) was in Q3 2002

It was only lower than this between 93 and 2000 when we were in the trough of the last crash

bumpoowee

IveSeenTheLight wrote: »

Times at when property is more affordable now than they were over the last 26 year average

The last time they were this affordable (in terms of mortgage payments as a percentage of income) was in Q3 2002

It was only lower than this between 93 and 2000 when we were in the trough of the last crash

Doesn't affordability need to be measured over the full 25 years rather than what people are paying monthly 'right now'? ie. you don't really know how affordable it is unless you have a 25 year fixed rate? I would think the only guarantee you have by buying now is that you have £200k of debt to deal with rather than the £80k or so if HPI had stuck with RPI over the years.

Dan:_4

Cleaver wrote: »

I'm afraid the use of the words 'bull' and 'bear' as a noun to describe a type of person, or group of people, has been banned:

http://forums.moneysavingexpert.com/showthread.html?t=2070011

Although I authored the thread, it was actually Martin who rang me up and asked me to do so.

Martin: "Cleaver, can you stop all this bull and bear cr*p?"
Cleaver: "Maybe. What's it worth?"
Martin: "I'll give you 3 for 1 pizzas, not just 2 for 1. I know a guy that sorts that type of thing."
Cleaver: "Sounds interesting."

So, yeah. All happened from there really.

Would you be okay to go back and edit your posts? Otherwise we will get the mammal police on to you. And you wouldn't want that.

God Cleaver, your turning more into Mewbie every day with this s.hite.

We all know the true definition of bull/bear - but it's never going to work on here.

Cleaver

Dan: wrote: »

God Cleaver, your turning more into Mewbie every day with this s.hite.

I actually take that as quite a compliment Dan.

ruggedtoast

IveSeenTheLight wrote: »

Times at when property is more affordable now than they were over the last 26 year average

The last time they were this affordable (in terms of mortgage payments as a percentage of income) was in Q3 2002

It was only lower than this between 93 and 2000 when we were in the trough of the last crash

Yeah maybe. My in laws bought their house in the late 70s on one blue collar salary (the woman's salary didnt count then).

Now it would probably be marketed at £250k, I guess they'd take £235. Its exactly the same kind of street with the same kind of people, nothing has gentrified.

If you take the average local salary of £20k, a couple both working full time would need to pay roughly 6 times their income to buy it. Or get a mortgage based on having almost £60k as a deposit.

The only people I know down there who got on the ladder without a lot of help were the ones that dropped out of school and got a council place.

They're,literally, laughing at the people who moved away and went to uni.

One guy I know dropped out, went on the dole, had a career packing boxes, flipped his council house and now has a tiny mortgage, a house worth a quarter mil for his family, and a zero stress job still packing boxes. He thinks its most amusing.

Oh well...