Mortgage approvals up again in July.

HAMISH_MCTAVISH

Lenders granted 49,239 loans to buy homes, compared with 48,500 the previous month, up 3% year on year and the highest level in 14 months.

Slightly better, but nowhere near what is needed.

Lets see what the commentators are saying......

The mortgage market is in a state of rigor mortis, and is unlikely to revive until lenders can reach comfort about their core capital.

"Lenders have offered lots of tantalising mortgage products over the summer, but only a fraction of low income buyers have qualified for them. In practice, lenders are targeting low LTV borrowers - less than 10% of approvals in July were for those needing high LTVs, compared to over 20% in July 2007.

"Restrictive rates on high LTV products are locking the majority of first time buyers out of the property market.

Yep. Mortgage rationing sure is helping the young. Not.

Anyway, how about the future.

"Nevertheless mortgage lending remains constrained compared to its historic level and it will take a prolonged and sizeable improvement in lending before the number of first-timers able to buy each year returns to anything like pre-downturn levels.

"As a result, demand for rental property will remain strong as the private rented sector continues to mop up demand from frustrated buyers, and we do not expect rent rises to peter out as the year draws to a close.”

Sibley

This is it now. HPI on the way.
They dont like it but nought they can do about it.

Every month must kill them paying their landlords mortgage. He's getting richer on their money.

angrypirate

HAMISH_MCTAVISH wrote: »

Lenders granted 49,239 loans to buy homes, compared with 48,500 the previous month, up 3% year on year and the highest level in 14 months.

Slightly better, but nowhere near what is needed.

Lets see what the commentators are saying......



Yep. [STRIKE]Mortgage rationing [/STRIKE] Greedy landlords sure is helping the young. Not.

Anyway, how about the future.

Corrected it for you. Im young. And i'll tell you now its not so called mortgage rationing thats stopping me from getting on the housing ladder. Ive either got to buy a shoebox or spend more than 50% of my income on a mortgage. So i'll stick with renting until the sellers are hit with a sense of reality.

doire_2

HAMISH_MCTAVISH wrote: »

Lenders granted 49,239 loans to buy homes, compared with 48,500 the previous month, up 3% year on year and the highest level in 14 months.

Slightly better, but nowhere near what is needed.

Lets see what the commentators are saying......



Yep. Mortgage rationing sure is helping the young. Not.

Anyway, how about the future.

Deal with it. Its here for a good while yet :T

Sibley

Corrected it for you. Im young. And i'll tell you now its not so called mortgage rationing thats stopping me from getting on the housing ladder. Ive either got to buy a shoebox or spend more than 50% of my income on a mortgage. So i'll stick with renting until the sellers are hit with a sense of reality.

Errr sellers don't need your money.
Either pay top whack or pay our mortgage off. Up to you. We have time on our hands. We are making money now.

IveSeenTheLight

angrypirate wrote: »

Corrected it for you. Im young. And i'll tell you now its not so called mortgage rationing thats stopping me from getting on the housing ladder. Ive either got to buy a shoebox or spend more than 50% of my income on a mortgage. So i'll stick with renting until the sellers are hit with a sense of reality.

I'm a LL and you may wish to call me greedy.
I won't feel offended by it nor will I feel ashamed.

I'm classing it as a business which is has developed as a result of a gap in the market, that being sufficient social housing available.

Is this to the detriment of the young?
You might think so.
I on the other hand prefer to think of it as providing for my families future and protecting the opportunities of my children.

It's a tough old world out there, sometimes you just have to get on with it.

angrypirate

Sibley wrote: »

Errr sellers don't need your money.
Either pay top whack or pay our mortgage off. Up to you. We have time on our hands. We are making money now.

Bit touchey there are we Sibbers? Got a BTL losing money have we? A few houses going down in value?

Iinterest rates can only go in one direction. I find it foolish that you are encouraging the younger generation to over-stretch themselves, putting themselvesin a position where they can only just afford to pay off a mortgage at record low interest rates. A receipe for disaster when rates go up. Oh, hang on. What do you care?

The only place in the country where prices are increasing is inside the M25, and even then its below the rate of inflation.
http://www.bbc.co.uk/news/business-14678794

angrypirate

IveSeenTheLight wrote: »

I'm a LL and you may wish to call me greedy.
I won't feel offended by it nor will I feel ashamed.

I'm classing it as a business which is has developed as a result of a gap in the market, that being sufficient social housing available.

Is this to the detriment of the young?
You might think so.
I on the other hand prefer to think of it as providing for my families future and protecting the opportunities of my children.

It's a tough old world out there, sometimes you just have to get on with it.

When you're children are struggling to get on the market because they are outbid by landlords maybe you'll feel differently. Its a sorry state when the average age of FTBs in a developed nation is 37.

JonnyBravo

angrypirate wrote: »

When you're children are struggling to get on the market because they are outbid by landlords maybe you'll feel differently. Its a sorry state when the average age of FTBs in a developed nation is 37.

I doubt it. You see he's ensuring he's able to help his kids out. This admittedly is at the cost of you and your kids but like he said it's a tough old world out there.
And yes, for clarity, it would appear I'm doing the same too, what with me being a landlord too.

Batchy

Guys, get a grip, its just the way it is, sellers dont need a reality check.

Why would anyone sell to pay more on rent than a mortgage? There just isnt any benefit to it.

Les make up a headline, CAPITALISE YOUR LOSSES NOW, PAY MORE IN RENT, SO SOMEONE LESS FORTUNATE CAN BENEFIT FROM YOUR LOVELY HOUSE!

It just doesnt happen, you have to accept that you either buy a distressed sale, these are repossessions, care home movers, divorces or seperations, probate, etc... or just stop whinging about how high the prices are.

Unless there is mass unemployment, then it wont happen, and if there is mass unemployment you will only either be directly or indirectly effected by it anyway. then too nervous about the economy to buy in a falling market.

Just stop and realise you cant take it with you.

even paying 50 quid too much on a mortgage per month, is better than paying someone elses mortgage, at least you see 400 per month paid off the capital (debt) on top of the interest paid!...

Its not all that bad... if there are no buyers and people dont have to sell, they just wont!

There is always the exception... buy the house you want... not just one thats cheap!!!

Loughton_Monkey

What do you get when there's a mortgage famine, much stricter criteria, and a severe uncertainty about jobs and earning? Answer: House prices will tend to decline.

What do you get when the population is 'exploding' and the "need" for housing of some form or another is rising at ballistic levels? And the number of new houses coming onto the market is at very low levels? Answer: House prices will tend to increase.

What do you get when both of the above apply? Answer: House prices will tend to be static.

Which will happen faster? A reversion to 'softer' lending criteria, a rise in the number of people who have saved a deposit making buying a option, and more certainty about one's employment and prospects? OR Houses are going to be built and start flooding the market to satisfy real demand? Answer: You decide! Because I don't know.

If I had to put a bet on, I would say that the volume of those coming through with their deposits and mortgage offers, plus at least 'no worse' feelings about the future will happen well before the house builders get their act together an put huge numbers of properties on the market.