Mortgage Approvals Rise Again

Rinoa

http://propertytalklive.co.uk/mortgages/8069-mortgage-approvals-hit-highest-level-since-december-09

Loans for home purchases reached their highest number since December 2009 in November thanks to the loosest mortgage lending conditions seen since the Lehman collapse, according to the latest Mortgage Monitor from e.surv chartered surveyors.

Purchase approvals rose from 52,743 in October to 54,658 in November on a seasonally-adjusted basis, an increase of 4%, and 15% higher than November 2010.

The increase was triggered by the loosest lending conditions since October 2007, as the average deposit fell back to 38% in November, down from 40% in October. By way of contrast, it was 42% in November 2010. Furthermore, there were more loans to borrowers with small deposits. Loans to borrowers with a deposit of 15% or under accounted for 13% of all lending in November, up from 10% in October, and the highest since October 2008. The average deposit on typical first time buyer property fell to 31%, the lowest since August 2008, and down from 33% in October.

The rise in purchase approvals was driven by an increase in the number of first-time and low income buyers, who were the beneficiaries of the looser lending conditions. They were also supplemented by buy-to-let investors who are taking advantage of increased lender appetite to support the professional BTL landlord in particular. Purchase approvals for homes below £125,000 – typical first time buyer and buy-to-let property - rose to 12,791 in November, up from 11,904 in October. Loans for purchases below £250,000 accounted for almost three-quarters of all loans, suggesting wealthier buyers are starting to represent a less disproportionate share of the market.

Richard Sexton, director of e.surv, said, “The market is thus far showing resilience in the face of the chaos emanating from the eurozone. For the last few months, the banks have been focusing their lending on specific groups, particularly buy-to-let investors, but this is the first time they appear to have increased lending to first time buyers in any notable sort of volume.

Excellent news. Attempts to talk down the housing market have failed spectacularly.

Really2

The rise at the moment is rather un-seasonal I have to say.

geneer

Rinoa wrote: »

http://propertytalklive.co.uk/mortgages/8069-mortgage-approvals-hit-highest-level-since-december-09

Excellent news. Attempts to talk down the housing market have failed spectacularly.

Nice to see you back in the land of the living Columbo.
I see the CML hotline is back up and running again.

geneer

geneer wrote: »

Nice to see you back in the land of the living Columbo.
I see the CML hotline is back up and running again.

:rotfl:My mistake columbo. You've elected not to run with your favoured CML statistics, and instead go with the never heard of e.surv figures.


I'm sure its nothing to do with this gem.
http://www.bbc.co.uk/news/business-16109139

There were 44,500 mortgages advanced for house purchases in the month, a fall of 8% compared with September, the Council of Mortgage Lenders (CML) said.

The CML figures show that the number of home loans advanced overall fell by 5% in October compared with a year earlier, and was down 1% over the same period for first-time buyers.

What can I say.

Boom.

Headshot.

IveSeenTheLight

geneer wrote: »

:rotfl:My mistake columbo. You've elected not to run with your favoured CML statistics, and instead go with the never heard of e.surv figures.


I'm sure its nothing to do with this gem.
http://www.bbc.co.uk/news/business-16109139



What can I say.

Boom.

Headshot.

Have you considered that there is a lag between approvals and issuance of loans?

You've effectively quoted historical information that is of no relevance to the mortgage approval number which may affect your stats in the coming months.

Nice deflection attempt nonetheless

Rinoa

geneer wrote: »

Nice to see you back in the land of the living Columbo.
I see the CML hotline is back up and running again.

Hi bed-sit boy.

I see ESPC is still up YoY.

And Edinburgh prices up £45000 since you joined HPC.

Here, have a wine smiley to celebrate your astuteness. [FONT=&quot] [/FONT]

AD9898_2

Approvals need to reach 75k + consistently to show any kind of health in the housing market and even that is a million miles away from the average of 90k over the period of 1990-2007.

It is my opinion that neither of those figures will ever be reached again, as the people who used to make up those figures are no longer able to buy due to better lending practise now and too higher prices.

Mallotum_X

And yet the BBC is reporting that approvals are down m-o-m and y-o-y to End October. Presumably there is going to ma a massive jump in the figures for november to make everything rosey again? http://www.bbc.co.uk/news/business-16109139

macaque_2

Rinoa wrote: »

http://propertytalklive.co.uk/mortgages/8069-mortgage-approvals-hit-highest-level-since-december-09

Excellent news. Attempts to talk down the housing market have failed spectacularly.

Thanks for this Rinoa. I particularly loved this bit:

thanks to the loosest mortgage lending conditions seen since the Lehman collapse

geneer

Rinoa wrote: »

Hi bed-sit boy.

I see ESPC is still up YoY.

And Edinburgh prices up £45000 since you joined HPC.

Here, have a wine smiley to celebrate your astuteness. [FONT=&quot] [/FONT]

Oh what an unexpected and original come back.
It really didn't occur to me that your first thought we be to scamper breathlessly to ESPC to check out the latest news.

Although applying "harsh realities" to your timing game it looks average prices are only up £20K. Thats a £20K+ saving in less than a day. Woo hoo!

Maybe I'll go for a marchmont 2 bedder. Down 5000K since "I could have bought".

Nah. I reckon I'll go the "transitory spike" route and watch, yet again, as you make the same mistake for the fourth time running.

You are the gift that keeps on giving. Keep spinning those wheels.

geneer

IveSeenTheLight wrote: »

Have you considered that there is a lag between approvals and issuance of loans?

Nah. I was mainly considering the fact that Columnbo/Rinoa is the first to leap on CML figures most months, yet this month has elected to go with erm..."E.surv" a single firm of chartered surveyors.

Still nice deflection Light.

IveSeenTheLight wrote: »

Have you considered that there is a lag between approvals and issuance of loans?

Good luck with that.