Mortgage lending falls again

Graham_Devon

Banks and building societies lent a further £13.1bn, which was 4% down from September, though still 16% up on the same month last year.

The CML said the market was still subdued, with lending boosted by people remortgaging rather than moving house.
Prices have been flat in the past year, with sales still at half their pre-recession levels.

"The immediate direction of house purchase activity is a little unclear, although the story for remortgages, with strong year-on-year increases in activity this year, is for the time being more straightforward," said CML chief economist Bob Pannell.

And another extract from the article..

"A meagre one in every 100 loans were to borrowers with a deposit of 10% or under, compared to 13 in every 100 in 2007.

http://www.bbc.co.uk/news/business-15789468

andybenw

So mortgage lending RISES. Up 16% on the same period last year.

Can you read?????????????

Thrugelmir

From the CML. Seems we are in a place similar to that prior to the collapse of Lehmans.

There are a number of transmission mechanisms through which the wider UK economy may be affected, but the most direct and relevant for the housing and mortgage markets are the ramifications for the cost and availability of funding.

Capital markets for the time being remain open, and UK lenders have been able to issue reasonable volumes of mortgage-backed securities and covered bonds. But, to all intents and purposes, banks have for several months been unable to raise long-term unsecured finance in the wholesale markets. Meanwhile, increasing LIBOR and Euribor rates suggest that banks are once again reluctant to lend to each other for shorter periods.

Fortunately, UK banks are relatively well-placed – they have much stronger balance sheets than just a few years ago, and many are close to fulfilling their long-term wholesale funding needs for the year. But, if wholesale funding problems persist, the risk is that this may increase the cost, and restrict the availability, of credit in the UK. There have already been signs of an upwards re-pricing of some mortgage deals in recent weeks.

http://www.cml.org.uk/cml/publications/marketcommentary

Thrugelmir

andybenw wrote: »

Can you read?????????????

Gross Lending includes remortgaging.

Graham_Devon

andybenw wrote: »

So mortgage lending RISES. Up 16% on the same period last year.

Can you read?????????????

Yes. I can read.

It helps me read the entire article, instead of just the bits I want to.