UK mortgage approvals up 97.7 pct y/y in Oct-BBA

lemonjelly

chucky wrote: »

that's interesting Generali

that would dispel the myth that it's the higher priced properties that are selling and skewing the indexes...


another myth on here is that FTB's are not going anywhere near the housing market, it's been said for months that they are but not taken too seriously...

Unless STR's are returning, as they have larger deposits, & only need to borrow (relatively speaking) a little to buy that 7 bed dream home?

I think that 1 interesting thing about this recession, is it hasn't been about any particular group, industry or class. Everyone, regardless of age, has had their confidence in repaying, or ability to take on long term debt seriously affected.

Emy1501

lemonjelly wrote: »

Unless STR's are returning, as they have larger deposits, & only need to borrow (relatively speaking) a little to buy that 7 bed dream home?

I think that 1 interesting thing about this recession, is it hasn't been about any particular group, industry or class. Everyone, regardless of age, has had their confidence in repaying, or ability to take on long term debt seriously affected.

I would like to know what percentage the STR, cash rich buyer makes up. I have always thought it was small but I know of close to 10 people who have STR'd who have bought back in the last year plus of course fair few on HPC have or are buying back. Also the closest agent to me in the last RICS survey admitted that there were hardly any sales to buyers with high LTV mortgages which suggests buyers with large equity or people who have STR'd

chucky

lemonjelly wrote: »

Unless STR's are returning, as they have larger deposits, & only need to borrow (relatively speaking) a little to buy that 7 bed dream home?

but has 8 months of Nationwide rises been just STR's - that's a lot of STR's. i don't think that is the case.

it's becoming a two-tier market - those with deposits get decent finance.
those without have to pay higher rates or continue renting. it seems that's enough to support current house prices.

lemonjelly wrote: »

I think that 1 interesting thing about this recession, is it hasn't been about any particular group, industry or class. Everyone, regardless of age, has had their confidence in repaying, or ability to take on long term debt seriously affected.

the common denominator is that it's affected more those without cashflow and have a high level of debt.

debt isn't bad if it's manageable btw

Really2

Emy1501 wrote: »

Also the closest agent to me in the last RICS survey admitted that most of their sales were coming from the cash rich who were only taking on small mortgages.

Do you work for RICS?

I have a family member EA and he says the cash rich were buying last year, as bigger discounts could be had as people struggled for mortgages there were better deals to be had (especially Repos.).
Around 40% of his sales are FTB and that fits in with around what the surveys are saying.

I would say the increase in 90% mortgage availability points to what Gen and others (like myself) think that FTB's are back in the market.

If not why are nearly 40% of all mortgages going to them?

Hear is a thread from Jan stating 40% were FTB, I can't see there being 15,000+ STR's coming back to the market every month for nearly a year.
http://forums.moneysavingexpert.com/showthread.html?t=1457439&highlight=

Emy1501

Really2 wrote: »

Do you work for RICS?

I have a family member EA and he says the cash rich were buying last year, as bigger discounts could be had as people struggled for mortgages there were better deals to be had (especially Repos.).
Around 40% of his sales are FTB and that fits in with around what the surveys are saying.

I would say the increase in 90% mortgage availability points to what Gen and others (like myself) think that FTB's are back in the market.

If not why are nearly 40% of all mortgages going to them?

NO why? As I say I know a few people who have bought this year after STR'ing. As for FTB's whats definded as a FTB? Is someone who has a STR fund classed as FTB? I can't find anything to suggest they are not?

I'm only asking the questions?

lemonjelly

chucky wrote: »

but has 8 months of Nationwide rises been just STR's - that's a lot of STR's. i don't think that is the case.

it's becoming a two-tier market - those with deposits get decent finance.
those without have to pay higher rates or continue renting. it seems that's enough to support current house prices.


the common denominator is that it's affected more those without cashflow and have a high level of debt.

debt isn't bad if it's manageable btw

I don't think it is the case either, but I think STR's may be skewing the market a little, as they need to borrow less, are less of a risk, & are also able to access credit & drive a harder bargain. I also think they're more likely to be looking at these "value" purchases, & what may seem to be knock down prices.

I agree with you that debt isn't bad as long as it is manageable. I may add the proviso "& you know how to manage it & react should circumstances change". But tht's the adviser in me;)

HammerSmashedFace

Interesting headline, so mortgage approvals are at 42k, isn't that less than half of what they are in 'normal conditions' ? Of course saying mortgage approvals are more than 50% down on a normal functioning market wouldn't give the right impression would it ?:rolleyes:

More lambs to the slaughter I guess. My guess is the economy will be in worse shape in 2 years time than it was a year ago. Lets hope all those new mortgages aren't 2 year fixes or trackers.

Really2

Emy1501 wrote: »

1)NO why?
As I say I know a few people who have bought this year after STR'ing.
2) As for FTB's whats definded as a FTB? Is someone who has a STR fund classed as FTB? I can't find anything to suggest they are not?

I'm only asking the questions?

1) You insinuated that you had access to RICS survey information.

2) I presume you don't go back to being a FTB, your details of having a mortgage in the past would be on record and is asked on an application. (Q) have you ever held a mortgage)

chucky

HammerSmashedFace wrote: »

Interesting headline, so mortgage approvals are at 42k, isn't that less than half of what they are in 'normal conditions' ? Of course saying mortgage approvals are more than 50% down on a normal functioning market wouldn't give the right impression would it ?

it doesn't matter the number of approvals against 'normal conditions' and being 50% down on whenever you like. the current number of approvals are supporting current house prices and the currency market - that's the key that many are in denial over and don't want to understand.

HammerSmashedFace wrote: »

More lambs to the slaughter I guess. My guess is the economy will be in worse shape in 2 years time than it was a year ago. Lets hope all those new mortgages aren't 2 year fixes or trackers.

people living and owning their own home are called lambs to the slaughter now

Emy1501

Really2 wrote: »

1) You insinuated that you had access to RICS survey information.

2) I presume you don't go back to being a FTB, your details of having a mortgage in the past would be on record and is asked on an application. (Q) have you ever held a mortgage)

1)No RICS survey info is widely available on the net. I read it from HPC. There are various agents on there from all over the country who advise whats happening in their local area.

2) The answer seems unclear. Hamish claimed that you have to have not had a mortgage for 3 years. Others say the CML do not split STR/FTB's. It seems strange to me 10% and certainly 15% mortgages have been around all year but the average deposit is 25%?. I would like to know the answer for sure and would be interested as to what % of buyers this year have bought with a STR fund. it maybe 1% it maybe way higher who knows. Some info regarding this would be interesting. To be honest I'm surprised the CML have never commented on it or maybe they have?