Mortgage lending 'picks up again' Up 19% MoM

Really2

http://www.bbc.co.uk/news/business-10937034

Mortgage lending to home buyers picked up again in June, the Council of Mortgage Lenders (CML) says.

Its figures showed that there were 52,000 new loans granted to home buyers, 19% more than in May and up 14% on the same month a year ago.

The CML said activity was "still on an upward trajectory" and described the rise in June as "significant".

However, the lenders' organisation said it was still cautious about the prospects for the coming months.

"This is now the 12th consecutive month in which lending has been higher than its year-earlier levels," said CML economist Paul Samter.

Thought I would be Hamish for the day.

May the frothing commence.

Graham_Devon

You've done a good job of being Hamish too, stopping quoting right before the "but"

IveSeenTheLight

Graham_Devon wrote: »

You've done a good job of being Hamish too, stopping quoting right before the "but"

Yep

"But we still expect house purchase activity to be muted in the coming months.
"Both consumer demand and lending capacity remain distinctly difficult to call, especially in the light of the government's austerity measures and their possible impact," he added.
Mortgage rationing
The number of property sales has been rising this year, from 50,000 in January to 86,000 in June, according to recent data from HM Revenue & Customs.
However, this has still left lending and sales at levels roughly half those recorded in the years running up to the onset of the credit crunch in 2007.

What is it with comparing to 2007. Do people really want or expect a return to 2007 levels?

he also miseed out on this one

However, first-timers are managing to get back into the market.
They took 28% more mortgages in the first half of this year than they did in the first six months of 2009.

Really2

I could have stopped at.

However, the lenders' organisation said it was still cautious about the prospects for the coming months.

For all those that cant open links for some bizzare reason here is the full content of the page.

Pick where I should stop next time to stop any complaints.

Mortgage lending to home buyers picked up again in June, the Council of Mortgage Lenders (CML) says.

Its figures showed that there were 52,000 new loans granted to home buyers, 19% more than in May and up 14% on the same month a year ago.

The CML said activity was "still on an upward trajectory" and described the rise in June as "significant".

However, the lenders' organisation said it was still cautious about the prospects for the coming months.

"This is now the 12th consecutive month in which lending has been higher than its year-earlier levels," said CML economist Paul Samter.

"But we still expect house purchase activity to be muted in the coming months.

"Both consumer demand and lending capacity remain distinctly difficult to call, especially in the light of the government's austerity measures and their possible impact," he added.

Mortgage rationing
The number of property sales has been rising this year, from 50,000 in January to 86,000 in June, according to recent data from HM Revenue & Customs.

However, this has still left lending and sales at levels roughly half those recorded in the years running up to the onset of the credit crunch in 2007.

One continued side effect of the banking crisis is that mortgage lending is still being severely rationed.

After a slight relaxation by lenders in April and May, first-time buyers in June were back to having to put down deposits averaging 24% of the value of the homes they are buying.

However, first-timers are managing to get back into the market.

They took 28% more mortgages in the first half of this year than they did in the first six months of 2009.

I find a whole page a bit excessive but if it keeps some happy (is that OK GD)

chucky

Really2 wrote: »

May the frothing commence.

i thought that the number of FTB's was dropping MoM - it seems to go against what people are saying on here...

However, first-timers are managing to get back into the market.

They took 28% more mortgages in the first half of this year than they did in the first six months of 2009.

nearlynew

As I've always said.....

Lower prices enable more people to buy, hence more lending.

And lower amounts being borrowed.


Great news.

chucky

nearlynew wrote: »

Lower prices enable more people to buy, hence more lending.

And lower amounts being borrowed.


Great news.

bullsh1t....

IveSeenTheLight

nearlynew wrote: »

As I've always said.....

Lower prices enable more people to buy, hence more lending.

And lower amounts being borrowed.


Great news.

And we know that what you say os gauranteed 100% to be incorrect

It's been shown before that lowering prices tightens credit, which restricts people from being able to buy, hence less people able to own.

IveSeenTheLight

chucky wrote: »

100% Gauranteed bullsh1t....

Corrected for you

Really2

nearlynew wrote: »

As I've always said.....

Lower prices enable more people to buy, hence more lending.
.

Thats not correct, falling prices = less lending as banks protect themselves from losses.*

It also means less can buy as people get trapped in NE or cant raise the deposits required*

*figures available from 2007 to now.

nearlynew

House prices have been falling for a while now and continue to do so.

This will enable more people to buy.