Mortgage lending plunges to a ten year low

Graham_Devon

Mortgage lending during August dived to a 10-year low for the month as activity in the housing market remained "exceptionally" weak, figures showed today.

A total of £11.4 billion was advanced during the month, 14% down on July's figure and the lowest level for August since 2000, according to the Council of Mortgage Lenders.

The group warned that the market was heading for a "difficult" second half of the year, with lending volumes likely to remain below the level seen during the last months of 2009, when activity was buoyed as the end of the stamp duty holiday approached.

I feel like I've stepped into Hamish's shoes

http://www.independent.co.uk/news/uk/home-news/mortgage-lending-plunges-to-10year-low-2084194.html

Can't get the song "I predict a riot, I predict a riot" out of my head!

des_cartes

Graham_Devon wrote: »

I feel like I've stepped into Hamish's shoes

http://www.independent.co.uk/news/uk/home-news/mortgage-lending-plunges-to-10year-low-2084194.html

Can't get the song "I predict a riot, I predict a riot" out of my head!

With lending criteria returning to pre=boom levels it is hardly surprising that very few people can borrow. Normality will return when house prices return to pre-boom levels to match lending at pre-boom levels.It's pointless having house prices at 6x income when lending criteria will only support house prices between 3 and 4 times income levels. The dodgy lending is over, the dodgy prices are following.

Really2

Yet prelim approvals fall only 4%,and net lending showing little change.

Any one would think remortgages could have something to do with the borrowing figures falling.

It added that while gross lending for house purchase was broadly stable during the month, remortgaging activity continued to be weak.

Can't get this song out of my head.

What' a matter you, hey.......
.................
.................
It's a nice place. Ah,

now what is the lyric?
http://www.youtube.com/watch?v=sFacWGBJ_cs

Graham_Devon

On my ankles again Really?

Malcolm.

Many FTBs can no-longer afford properties. The wealth divide between have and have nots is increasing.

The bears have truly missed the boat.

doire_2

Malcolm. wrote: »

Many FTBs can no-longer afford properties. The wealth divide between have and have nots is increasing.

The bears have truly missed the boat.

If you want a house then save for a deposit. The days of getting money thrown at you have gone.

Malcolm.

doire wrote: »

If you want a house then save for a deposit. The days of getting money thrown at you have gone.

Me? I have a house. Purchased while credit was cheap. :):)

TBH, it's the young I feel sorry for.... pay for uni, pay for older gens health care... pay for older gens unfunded pension schemes.... lack of access to cheap credit. e.t.c. e.t.c.

Batchy

doire wrote: »

If you want a house then save for a deposit. The days of getting money thrown at you have gone.

just a little anecdote.

I decided to start saving in 2004/05, late in life... i was 27... and thought what am I messing about for...

Im now 33 and have brought a house, that most likely I will never need to move from.

Its absolutely perfect... yes it did take me 5 years, but life still carried on, most of my friends were paying off debt anyway, so it was a good time to economise... now, im sorted nd in the next stage... paying down a FIXED debt... if house prices rise my debt stays the same, if they go down, my debt stays the same. Im not too bothered about prices now, just about the economy. I need a job after all to earn money, to repay my debt.

All i need to do is stay EARNING, and all will be good.

In the current climate anything could happen, if I lose my job, then the worst could happen... YES, but if I lose my job, and had a lower mortgage, then it wouldnt matter if I managed to save another 10% off the price of the house, id end up losing the house anyway more than likely.

At the end of the day, my plan for the rest of my life has now begun, and thats the most important thing, you only have one life cycle really... so, dont waste the chances that come your way, you should already be saving as it will take years to get to the 10%+ mins that you need... if prices fall another 20% It wouldnt surprise me if the new norm was 25% minimum. The banks will get burnt VERY badly if these further expected falls happen.

no point expecting prices to fall rates to stay at 0.5% thinking you will be able to get base plus 1% and only need a 10% deposit, if the banks lose cash, they will hedge those loses with higher margins on future products.

If prices fall another 20% from now, expect 25% min deposits, expect base (probably still being 0.5%) plus 6% mortgage rates and expect product fees to be 2k or 3k and expects long fixed terms at those rates being more attractive than short term fixes so high early redemption charges. Expect legal fees to rise, due to the lack of work, and expect selling fee's with estate agents to be as high as 3-4% due to falling volumes and falling values... they need to maintain their core income levels, otherwise they will have to make cuts and redundancys, then you can expect a bad service and no one answering the phones etc.

Really2

Graham_Devon wrote: »

On my ankles again Really?

Sorry graham, your thread, I forgot it wasn't a debating forum.

Fairly sad GD you need to try and bate for a argument, but you wont get one from me.

Not for the first time, the point why it is so low was completely missed off.

Graham_Devon

Really2 wrote: »

Sorry graham, your thread, I forgot it wasn't a debating forum.

Fairly sad GD you need to try and bate for a argument, but you wont get one from me.

Not for the first time, the point why it is so low was completely missed off.

Have a look at the time I posted the OP.

It was breaking news at the time.

When I posted the article, I had quoted the full article, as it was breaking news. The article has had stuff added to it since. I didn't actually miss anything.

So sorry, but fail. You are getting too desperate to find anything to have a go about.

I have no idea how I'm baiting for an argument by posting up an article.

Really2

Graham_Devon wrote: »

Have a look at the time I posted the OP.

It was breaking news at the time.

When I posted the article, I had quoted the full article, as it was breaking news. The article has had stuff added to it since. I didn't actually miss anything.

Yes Graham, the news paper wrote half then left it until 1 hour later when I posted to add the rest.
News papers are always doing breaking news stories on such important news I always see such breaking news in the independant. .;)

Did you see the one about the white carrot shaped like a pair of legs!!! turned out to be a parsnip.

here is another one breaking it almost exactly the same 5 mins earlier.
http://www.mortgagesolutions-online.com/mortgage-solutions/news/1733896/august-mortgage-lending-hits-low

Nurse...........