Mortgage lending up

Graham_Devon

The number of loans made for house purchases rose slightly in the UK in May as low interest rates continued, lenders have said.
About 42,000 home loans were granted in May, up 2% on the previous month and 15% higher than May 2009, the Council of Mortgage Lenders (CML) said.
Mortgage interest payments accounted for the lowest proportion of home movers' income for 35 years, it added.
It predicted that mortgage borrowing would slow in the rest of 2010.
A temporary increasing of the threshold at which purchasers must pay stamp duty had led to activity picking up in the second half of 2009, said CML director general Michael Coogan.
"With the government's austerity drive picking up momentum we are unlikely to see a repeat of those buoyant numbers this year," he added.

Could it be a peak for 2010?

And there is an answer in that quote to something argued on here quite a lot, regarding how interest rates have helped peoples pockets.

Mortgage payments at the lowest proportion of home movers income for 35 years. Surely people can't continue arguing that base rates have no direct impact on the housing market when you see research like that!!

http://news.bbc.co.uk/1/hi/business/10597075.stm

chucky

Graham_Devon wrote: »

Could it be a peak for 2010?

why would it be the peak - are they going to fall from May onwards?

Graham_Devon

chucky wrote: »

why would it be the peak - are they going to fall from May onwards?

I don't know. Just reading the article suggests numbers are going to fall from now onwards.

And I'm wondering why the CML are predicting this.

Really2

Graham_Devon wrote: »

Could it be a peak for 2010?

And there is an answer in that quote to something argued on here quite a lot, regarding how interest rates have helped peoples pockets.

Mortgage payments at the lowest proportion of home movers income for 35 years. Surely people can't continue arguing that base rates have no direct impact on the housing market when you see research like that!!

http://news.bbc.co.uk/1/hi/business/10597075.stm

I don't think anyone has argued it has made some peoples mortgages cheaper, but this is talking about taking out new loans.

But I seem to remember someone was arguing it was the reason why defaults were lower. Not that it made new buyers better off than years ago.
So people who take out lower rate mortgages pay less, wish I knew that a few years ago.;)

chucky

Chaos_A.D. wrote: »

42,000 loans ? pretty feeble, I see house prices staying high while this figure is so low. Prices are sustainable at this point. If this ends up being the new 'norm' then prices are unlikely to fall much further.

However, hundreds of thousands of households are underwater, being saved by the low base rate and banks not repo'ing, if this were to change, things will look very different.

not really - the bearish argument here should be that you would have to see the 'new total amount borrowed' for May to see what the average mortgage amount was with 42,000 transactions.

it would tell you if mortgage amounts remained consistent or were dropping...

come on Ad... do i have to do your job for you

Graham_Devon

Really2 wrote: »

I don't think anyone has argued it has made some peoples mortgages cheaper, but this is talking about taking out new loans.

But I seem to remember someone was arguing it was the reason why defaults were lower. Not that it made new buyers better off than years ago.
So people who take out lower rate mortgages pay less, wish I knew that a few years ago.;)

It's not referring to new loans, it's referring to home movers.

And I was referring to defaults and reposessions. You even refer to that in your own post. Dunno what the rest of your post is on about to be honest, other than somehow trying to find a way to disagree

Really2

Graham_Devon wrote: »

It's not referring to new loans, it's referring to home movers.

Graham, do I need to point out why that would be new loans. (seeing the data is about mortgage lending) You fund any additional lending as a new loan or remortgage the whole sum. The new loan is new lending any way you want to look at it.

If you are on about defaults how are mortgage rates when moving house being cheaper than 35 years ago relavent? People with collateral and that move can get cheaper loans, I take it that is not your average person getting near repo status TBH.

Dirk_Rambo

round where i live, even if people can find someone to buy there hosue, they cant get a mortgauge. the markets at a standstill and prices are plunging

Really2

Dirk_Rambo wrote: »

round where i live, even if people can find someone to buy there hosue, they cant get a mortgauge. the markets at a standstill and prices are plunging

Watch the odd spelling on here or people will think you are the same user as someone else bullish on silver with the same spelling for the same word. .
http://forums.moneysavingexpert.com/showpost.html?p=29106993&postcount=33

novazombie wrote: »

IAnd wait for it, they have bought their 4 bed coucil house years ago no mortgauge left and now drive a Merc.

(only spelt like that twice on this forum altogether )

Good to see prices are still falling at "round my way"

Dirk_Rambo

Really2 wrote: »

Watch the odd spelling on here or people will think you are the same user as someone else bullish on silver with the same spelling for the same word. .

i cant say ive ever heard of him. is he a freind of MrEnglish?

Blacklight

Dirk_Rambo wrote: »

round where i live, even if people can find someone to buy there hosue, they cant get a mortgauge. the markets at a standstill and prices are plunging

Also, 'round my way' is the correct term.

Where do you live !!!!!!? I'm in the market for a good few places to rent out and prices have been falling off a cliff round your way for so long they must be paying people to take them away.