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

HammerSmashedFace

chucky wrote: »

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

I, for instance own my house, others have mortgages and so do not own their own house, and are therefore at the beck and call of the market. Here is and example....

Mervyn King is sitting in front of the House of Lords committee now and amongst things that he has said is this..

'We have an extraordinary degree of monetary tightening to make", and when to tighten and by how much will be one of the most important decisions the MPC has ever had to make.'

'We've been through a long period of low real interest rates. Don't know whether that can persist. If it doesn't then we're in for a period of falling asset prices.'

'Raising inflation to reduce real value of government debt is a mistaken policy and would not work.'

Interesting times are ahead, I wouldn't like to be over-leveraged though, especially on property.

Really2

Emy1501 wrote: »

1)No RICS survey info is widely available on the net. I read it from HPC.

I am sorry the quote you made information is not available on the net or in the report.

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.

here is the report.
http://www.rics.org/site/download_feed.aspx?fileID=4871&fileExtension=PDF

The report has never mentioned info like that. It is how surveys see the market going not on what kind of people buy.

I am not having a go at you but I would like to see the statement backed up if you could.

chucky

HammerSmashedFace wrote: »

Interesting times are ahead, I wouldn't like to be over-leveraged though, especially on property.

we are in interesting times

but saying that people taking out mortgages are now "lambs to the slaughter" is making a bit of a big assumption that buyers are over-leveraged. current LTV on new mortgages is about 75%.

i wouldn't have thought that there would be many people over-leveraged at 75% LTV.

Emy1501

Really2 wrote: »

I am sorry the quote you made information is not available on the net or in the report.


here is the report.
http://www.rics.org/site/download_feed.aspx?fileID=4871&fileExtension=PDF

The report has never mentioned info like that. It is how surveys see the market going not on what kind of people buy.

I am not having a go at you but I would like to see the statement backed up if you could.

Hi if you look at my post again. I have changed the comment as I re-read the report myself. You responded though very quickly to my post so you responded before I changed it. The info I have read as I say is available for everyone to see I never suggested that it was info for only certain people to read and I'm not sure where you got that from.

ess0two

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 ?: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.

Perhaps you should have kept you're powder dry and bought later with that viewpoint?
Or was it time to move on?some are still sitting this out hoping for further falls,only time will tell.

Thrugelmir

ess0two wrote: »

Perhaps you should have kept you're powder dry and bought later with that viewpoint?
Or was it time to move on?some are still sitting this out hoping for further falls,only time will tell.

Bigger falls but higher interest rates over the longer term.

Better maybe to take the risk of buying now while rates are at their lowest. We'll probably never see these levels of rates again in the future.

ess0two

Thrugelmir wrote: »

Bigger falls but higher interest rates over the longer term.

Better maybe to take the risk of buying now while rates are at their lowest. We'll probably never see these levels of rates again in the future.

Seems to be the crux of it,but will we see the lows of Feb 2009 next year or the year after?

chucky

Thrugelmir wrote: »

Bigger falls but higher interest rates over the longer term.

Better maybe to take the risk of buying now while rates are at their lowest. We'll probably never see these levels of rates again in the future.

or we may never see the levels of prices of Feb 2009 again

ess0two wrote: »

Seems to be the crux of it,but will we see the lows of Feb 2009 next year or the year after?

or ever again??

if they're never to be seen again there are going to be some disappointed peeps on here.
they could have bought something cheaper but decided to pay more for it, that's not very MSE... Martin Lewis will be dissapointed :money:

HammerSmashedFace

ess0two wrote: »

Perhaps you should have kept you're powder dry and bought later with that viewpoint?
Or was it time to move on?some are still sitting this out hoping for further falls,only time will tell.

My circumstances meant that the price wasn't a factor anymore, hence the fact that I wish for prices to fall much further and I also would like rigorous lending practises bought in like LTV and salary caps, as well as 80%+ capital gains on BTL. (It won't happen though, to many greedy VI's in power who would lose out.)

Society would benefit enormously if 2 people didn't have to work all the hours god sends to service a mortgage on a shoebox, of course some people would have to be sacrificed to reach this goal.

But needs of the many (the young and the future generations), outweigh the needs of few (bought after 2002 by over extending themselves, mewers, etc)

HAMISH_MCTAVISH

HammerSmashedFace wrote: »

Interesting headline, so mortgage approvals are at 42k, isn't that less than half of what they are in 'normal conditions' ?

Don't confuse BBA approvals with total BoE approvals.

BBA are only part of the market. If BBA is 42K, total approvals will be somewhere around 60K.

60K is certainly far less than peak boom transactions..... But as the bears keep pointing out, that was far from "normal".

Normal, in my book anyway, is probably best reflected by pre-boom levels, so anywhere in a range of 70K to 100K. We're not that far away from at least a semblance of normality.

Of course saying mortgage approvals are more than 50% down on a normal functioning market wouldn't give the right impression would it ?:rolleyes:
.

You really must make your mind up..... :rolleyes:

Either the boom was normal or it wasn't. But you can't pick and choose saying prices were abnormal and transaction levels normal, as the two are directly connected.

Current transaction levels, at around 60K per month, are more like 85% of a "normal functioning market", ie, a pre boom-time market.