Mortgage lending in May

doire_2

http://news.bbc.co.uk/1/hi/business/10389407.stm


Mortgage lending continued its spring rise into May, according to the British Bankers' Association.
The number of mortgages approved for house purchases rose to its highest level so far this year.
A total of 36,709 loans were approved by the major banks for people buying a property during the month.
It was the third month in a row of rising mortgage approvals, and left the amount outstanding 4.3% higher than in May 2009.
The BBA represents the High Street banks, which account for 75% of new mortgage lending.
However, that rate of growth is almost half the pace of 2008, when mortgage lending was increasing by 8% a year, and the number of mortgages approved is about half the number seen in pre-financial crisis years.
Households continue to pay off debts, according to the BBA.
"The low interest rate environment is resulting in customers choosing to reduce or pay off borrowing, particularly personal loans, rather than saving," said the BBA's director of statistics, David Dooks.
Re-mortgaging accounted for the lion's share of loan approvals with 24,626 taking out new or replacement loans on their existing property.
The number of home loans approved for house purchases was 35,729 in April, up 685 on March.

Blacklight

You could have just posted that 33% of mortgage lending was attributable to first time buyers. That would have been too easy though.

doire_2

Blacklight wrote: »

You could have just posted that 33% of mortgage lending was attributable to first time buyers. That would have been too easy though.

And why would i do that when my only intention was to post the BBC link

chucky

The Kalman estimator extracts the neutral level Q0, the number of monthly approvals that correspond to zero HPI.

Prior to mid-2006 this sat at around 80-85k, but more recently jumped to about 97k indicating that it took slightly more approvals to drive the same amount of HPI. It is currently reverting as the supply of mortgage credit is restricted.

HAMISH_MCTAVISH

doire wrote: »

Re-mortgaging accounted for the lion's share of loan approvals with 24,626 taking out new or replacement loans on their existing property.
.

The number of mortgages approved for house purchases rose to its highest level so far this year.

A total of 36,709 loans were approved by the major banks for people buying a property during the month.

It was the third month in a row of rising mortgage approvals, and left the amount outstanding 4.3% higher than in May 2009.

doire_2

HAMISH_MCTAVISH wrote: »

The number of mortgages approved for house purchases rose to its highest level so far this year.

A total of 36,709 loans were approved by the major banks for people buying a property during the month.

It was the third month in a row of rising mortgage approvals, and left the amount outstanding 4.3% higher than in May 2009.

However, that rate of growth is almost half the pace of 2008, when mortgage lending was increasing by 8% a year, and the number of mortgages approved is about half the number seen in pre-financial crisis years

(mine is bigger than yours)

Rinoa

doire wrote: »

However, that rate of growth is almost half the pace of 2008, when mortgage lending was increasing by 8% a year, and the number of mortgages approved is about half the number seen in pre-financial crisis years

(mine is bigger than yours)

There you go. I've reduced it in line with its relative importance.

chucky

someone needs to explain net lending and mortgage approvals to doire - he doesn't seem to understand and thinks they're the same thing :eek:

Really2

doire wrote: »

However, that rate of growth is almost half the pace of 2008, when mortgage lending was increasing by 8% a year, and the number of mortgages approved is about half the number seen in pre-financial crisis years[/SIZE]

(mine is bigger than yours)

Half the pace is not half the amount that is a 12.32% increase over 2 years.
Odd to compare, it is 4% up on 8% so still up on last years strong increases (strong because of historical lows)

do you want to see better than 4% increases on top of 8%. Would you like to see it at 10%?

abaxas

Great news..

So on average a property is sold every 56 years. Soemthing is wrong there

HAMISH_MCTAVISH

abaxas wrote: »

Great news..

So on average a property is sold every 56 years. Soemthing is wrong there

Not wrong, just incomplete.

1. That's BBA stats, and does not include the building societies and specialist lenders.
2. It doesn't include cash purchasers.

The total transactions are more like 70K a month at the moment, but fluctuate throughout the year.

Roughly a million transactions a year is where we're at now.

There are roughly 17 million houses in owner occupation.

So each house sells once every 17 years on average.