BoE: Approvals up 5% to 60,518

Rinoa

http://www.bankofengland.co.uk/statistics/li/2009/nov/lendind.pdf

:eek:

http://uk.reuters.com/article/idUKTRE60312920100104?rpc=401&feedType=RSS&feedName=domesticNews&rpc=401

LONDON (Reuters) - Lenders approved the highest number of mortgages for house purchase since March 2008 in November and the Bank of England's preferred gauge of money supply showed a marked pick-up, official figures showed on Monday.
The data come hot on the heels of a surprisingly positive manufacturing survey and will likely strengthen expectations that the Bank will not extend its 200 billion pound quantitative easing policy once the remaining funds are spent during the next month.
The Bank said mortgage approvals numbered 60,518 in November, rising from an upwardly revised 57,718 in October and more than double its record low of 27,162 set in November 2008. Analysts had forecast a reading of 58,000.
"The figures have surprised positively," said Amit Kara, economist at UBS. "They are consistent with our more constructive view on UK housing as well as for overall economic growth this year."

HammerSmashedFace

When approvals were above 100k per month mortgage lending was approx £32 billion per month, what is the figure now ? Rising approvals is a good thing especially if as a ratio of how much money is lent stays well below 2007, which I believe it is quite easily.

Graham_Devon

HammerSmashedFace wrote: »

When approvals were above 100k per month mortgage lending was approx £32 billion per month, what is the figure now ? Rising approvals is a good thing especially if as a ratio of how much money is lent stays well below 2007, which I believe it is quite easily.

I'm close to saying it's all over in all honesty.

Return to funny money, return to everything before the crash, and another crash sometime later on, but I'm thinking years ahead.

HammerSmashedFace

Graham_Devon wrote: »

I'm close to saying it's all over in all honesty.

Return to funny money, return to everything before the crash, and another crash sometime later on, but I'm thinking years ahead.

If it's allowed to happen again the outcome will be exponentially worse, as next time we will be still paying for whats happened this time, and as there will then be no money to prop the pyramid scheme up next time, Macaques prediction of 70% falls could become very real.

chucky

HammerSmashedFace wrote: »

When approvals were above 100k per month mortgage lending was approx £32 billion per month, what is the figure now ? Rising approvals is a good thing especially if as a ratio of how much money is lent stays well below 2007, which I believe it is quite easily.

but isn't rising approvals a good thing - higher approvals with lower amounts being borrowed equals either lower property values or lower LTV's.

they're both things that you want or is this not a good thing now?

StevieJ

HammerSmashedFace wrote: »

When approvals were above 100k per month mortgage lending was approx £32 billion per month, what is the figure now ? Rising approvals is a good thing especially if as a ratio of how much money is lent stays well below 2007, which I believe it is quite easily.

I should imagine remortgages must be at an all time low with many people sat on cozy trackers and VR.

nollag2006

StevieJ wrote: »

I should imagine remortgages must be at an all time low with many people sat on cozy trackers and VR.

Agreed

Personally, I know that I have little intentioning of remortgaging my main residence, as I'm on BOE + 1.99%.

So, is it fair to say that most of these approvals relate to FTBs / home movers?

Generali

To take what the BoE has to say about this:

Total net lending to individuals rose by £1.1 billion in November (Table A). The twelve-month growth rate remained at 0.7%. The three-month annualised growth rate was 0.6%, unchanged from a revised 0.6% for October.

Within the total, net lending secured on dwellings increased by £1.5 billion (Table A), higher than the October increase of £1.1 billion and the previous six-month average of £0.7 billion. The twelve-month growth rate was 0.9%, unchanged from a revised 0.9% for October.

Consumer credit fell by a net £0.4 billion, weaker than the previous six-month average of a £0.2 billion fall (Table A). Credit card lending increased by £0.2 billion but other loans and advances fell by £0.6 billion. The annual growth rate
of consumer credit continued to fall, to -0.5%; the three-month annualised growth rate remained at -2.2%.

So where are we now?

Well IMO nothing has changed. The banks are lending a bit more on a mortgage and a bit less unsecured which fits in with the bigger picture of banks wanting to take on less risk - better to lend secured against an asset than lend unsecured and banks must lend as it's how they make their money.

The above from the BoE is more flat lining for UK credit markets rather than a return to the boom times, IMO at least.

Rinoa

nollag2006 wrote: »

So, is it fair to say that most of these approvals relate to FTBs / home movers?

Yes. They all relate to house purchase ~ remortgages are excluded.

Graham_Devon

HammerSmashedFace wrote: »

If it's allowed to happen again the outcome will be exponentially worse, as next time we will be still paying for whats happened this time, and as there will then be no money to prop the pyramid scheme up next time, Macaques prediction of 70% falls could become very real.

Yes, true.

But I think those who actually care are in the minority. Everyone wants now to be ok, stuff the next generation, and forget that it can't go on like it was.

People want it back. They want their houses to go up in value, they want credit cards, they want loans and new cars, and they want it now. They want mortgages as easy as they can get them now, they don't want to save. They want 90-100% back, forget the rates, they want it now.

The government want it now too, so it's all going swimmingly. Don't think the next government will make massive in roads until a good year later, and by then it will be too late so will be swept away for another time, of which, we will blame America.

I'm starting to hop over the fence. I'm not optimistic about the economy or anything else. But I can see what the appetite is out there, and it aint for paying things back, and thats what's leading me to think this is all done and dusted.

Anyone been shopping lately? It's busier than boom times. Dunno if thats just footfall or not, but even Saturday was hideously busy in the city I went to and plenty of people queuing at checkouts, especially in the more designer clothes shops.

1984ReturnsForReal_2

Graham_Devon wrote: »

Yes, true.

Yes its true Graham.

We will still be paying of debt, there will be no additional QE or cash available & the IMF will get involved.