Mortgage Lending Falls 10%

neas

Woohoo.. gogo spin meister Hamish .

You can convince yourself a negative is a positive... i love you.. if i met you in real life i'd shake your hand for being such a chump

HAMISH_MCTAVISH

neas wrote: »

Woohoo.. gogo spin meister Hamish .

You can convince yourself a negative is a positive... i love you.. if i met you in real life i'd shake your hand for being such a chump

Lending for new purchase is what impacts prices. True or false?

Remortgaging is irrelevant to prices. True or false?

Approvals for lending for new purchase rose in November. True or False?

Mortgage approvals for new purchase, the important part of lending as far as prices go, rose in November. There is no way to spin that as being negative.

Graham_Devon

HAMISH_MCTAVISH wrote: »

Lending for new purchase is what impacts prices. True or false?

Remortgaging is irrelevant to prices. True or false?

Approvals for lending for new purchase rose in November. True or False?

Mortgage approvals for new purchase, the important part of lending as far as prices go, rose in November. There is no way to spin that as being negative.

And you are on a thread where the news article is a 10% fall in lending.

What is up with you?

Really2

So does any one know why it fell?
Have any figures been released to show if it was remortgaging or less money lent for new purchases etc?

Graham_Devon

Really2 wrote:

Could you do it without being beastly?

I did. Could you write a post without trying to score points all the time?

Really2

Graham_Devon wrote: »

I did. Could you write a post without trying to score points all the time?

I deleted it, I did not think it was all that funny in the end, Thanks for the reply though.

Graham_Devon

Really2 wrote: »

So does any one know why it fell?
Have any figures been released to show if it was remortgaging or less money lent for new purchases etc?

The article says:

"But there is no sign of a swift recovery in lending volumes, especially with remortgaging set to remain at subdued levels while low interest rates persist."

So I guess it's not remortgaging thats falling since last month. But doesnt specifically state that.

Really2

Graham_Devon wrote: »

The article says:

"But there is no sign of a swift recovery in lending volumes, especially with remortgaging set to remain at subdued levels while low interest rates persist."

So I guess it's not remortgaging thats falling since last month. But doesnt specifically state that.

All that means is that lending volumes will remain subdued while remortaging is falling due to the low SVRs we currently have.

How does your guess even dismiss that remortgaging is falling without any indication.

They also said

But it added market conditions were holding steady, and it did not expect much change in the near future.

That could mean that net new lending is holding steady.

No there are no released figures yet indicating why lending has fallen other than the gross amount

May have been a more appropriate answer or a link to the figures.

Graham_Devon

Really2 wrote: »

All that means is that lending volumes will remain subdued while remortaging is falling due to the low SVRs we currently have.

How does your guess even dismiss that remortgaging is falling without any indication.

Ok.

If remortgaging is already at subdued levels, as we all know it is. It would take one BIG fall in the smaller number (remortgages) to make a fall which totals 10% of all lending.

I.e. remortgaging in one single month would have to fall off a cliff to bring all the other totals down to give a total fall of 10%.

No doubt I will now be told I don't understand etc.

bernard_shaw

The CML Market Commentary is worth reading.

The CML is telling it's stakeholders to expect stability in housing and mortgage markets for the foreseeable future.

Now, that would be nice, wouldn't it? No crash to enrage and impoverish the debtor/investor. No boom to over-extend and impoverish the FTB's.

IMHO, this is the best news for house prices and the economy, potentially allowing all stakeholders to plan requirements and provisions against a non-febrile background of houses being regarded as homes, not financial vehicles; and the provision of loans being regarded with sober caution, not a buccaneering adventure in leverage.

Having said all that, the commentary does list (and then sort of hand-wave past) a number of downside risks to the housing and mortgage markets. The commentary does not detail any upside prospects whatsoever.

Edit:

Actually, it does detail one upside:

There has been a modest increase in the availability of mortgage credit recently, including some tentative signs of a few higher LTV products emerging.