Mortgage Lending Down

Graham_Devon

Degenerate wrote: »

Indeed, take away sensible monetary policy and we'll be in constant recession. Your point was?

Doesn't say much for the UK does it.

greenbubble

Degenerate wrote: »

Indeed, take away sensible monetary policy and we'll be in constant recession. Your point was?

merely an adjunct to worldtravelers post.

can i conclude from your reply then , that any system that allows currency debasement on such a scale as being worthwhile and the best we should aspire to ?

green

torontoboy45

Graham_Devon wrote: »

http://www.bbc.co.uk/news/business-11581929

Approvals down to 48,000 too.

excellent.
20/30- something wanabee ftb'ers are holding back. or at least aren't raiding the bank of ma + da. a light bulb moment (I'm hoping).

does anyone expect circs to change anytime soon?

doire_2

http://www.guardian.co.uk/business/2010/oct/20/mortgage-lending-slumps

Mortgage lending slumped to its lowest level in a decade in September as home owners were deterred by the uncertainty caused by the government's planned cuts to spending and public sector jobs.

The data from the Council of Mortgage of Lenders was described as a "shocker" by one mortgage broker as the figures were also lower than August, traditionally a quiet month. The CML used the slump in the market to make one last plea to the government ahead of the comprehensive spending review for schemes for borrowers in difficulty not to be cut.

Gross lending was £12bn in September, down from £12.1bn in August and 7% lower than September 2009. The last time lending was this low was in September 2000 when £10bn was advanced for home loans.

Brian Murphy, head of lending at independent mortgage broker, Mortgage Advice Bureau, said: "September's figures are a shocker – down on August, usually the quietest month of the year, down on last September when we were still in the grips of recession, and no sign of the traditional post-summer bounce in mortgage activity which doesn't bode well for the rest of the year and early 2011."

Brokers had been braced for a slow autumn because of the comprehensive spending review later today. Michael Coogan, director general of the CML, said: "Lending volumes do not seem likely to increase substantially towards the end of the year. Funding pressures on lenders remain, and the practical implications of government and public spending cuts are beginning to emerge, with a resulting impact on consumer confidence.

"Despite the pressures on government finances, today's comprehensive spending review is no time to make further cuts in state support for borrowers in difficulty. A concerted effort by borrowers, lenders, the government and money advice agencies has helped to keep mortgage arrears and repossessions in check during the current economic downturn. These support measures help contain the wider costs of homelessness, and deliver wider benefits to the government. Now is not the time to weaken the existing safety net."

Mortgage brokers are now warning that a "long, hard winter and further downward pressure on house prices looks inevitable", Murphy added.

The slowdown in lending may lead to further house price falls.

Data on house prices during September has been conflicting. Halifax reported that house prices fell by a record 3.6% during September – the biggest fall in 27 years – although Nationwide had house prices rising 0.1% in the same month.