Surprise Rise in Mortgage Approvals

Rinoa

Well, only a surprise for those who don't follow the market.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8991683/Surprise-rise-in-mortgage-approvals.html

Loan approvals for house purchase rose to 52,854 in November with a total value of £7.6 billion, the second monthly rise in a row and the highest figure since December 2009, the Bank of England figures showed.

But the number of loans for remortgaging declined for the second month in a row to reach 31,154, worth £4.1 billion overall, the lowest figure since June last year.

Samuel Tombs of Capital Economics said the increase in new mortgage approvals from 52,786 a month earlier defied the widely-held expectation for a fall.

But he added: "We fear that approvals for new house purchase might soon start to fall as banks further restrict the availability, and raise the price, of credit in response to the deterioration in wholesale funding markets."

Highest approval numbers for 2 years but Capital Economics are still depressingly negative. No change there then.

Generali

Rinoa wrote: »

Well, only a surprise for those who don't follow the market.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8991683/Surprise-rise-in-mortgage-approvals.html

Highest approval numbers for 2 years but Capital Economics are still depressingly negative. No change there then.

It's a start. There's a long way to go and the (over?)capitalisation rules being imposed under Basle III won't help.

MrRee_2

It's what I have seen on my own doorstep .... houses selling fast, and at asking prices.

Only those that follow the market very closely can see what has happened since October - the market is experiencing a boom due to lack of supply of property.

Those in the North would be very wise indeed to buy right now, as the boom will hit them in the late spring 2012.

Sibley

At first I thought prices would stagnate this year. Now it's looking like HPI is back.
Hold onto your hats homeowners. We are back on the ride to dreams.

Conrad

I've had I think my busiest December ever and that on the back of a decent November. Could be a blip. I have a thread in DT discussing the comming return to prosperity which has it's fair share of naysayers, but I'm very confident we will turn the corner by summer 2012, and enter the next prosperity phase.

I would ask bears to think beyond thier typical linear extrapolation of THE CURRENT SCENE - this is not how a thinking person makes predictions. You must see beyond the current scene and use a bit of noddle and lateral thinking.

Aberdeenangarse

Sibley wrote: »

At first I thought prices would stagnate this year. Now it's looking like HPI is back.
Hold onto your hats homeowners. We are back on the ride to dreams.

Not looking so good for Maidstone....or even the Loose Valley!

geneer

That will be all that mortgage rationing.

Mallotum_X

You are excited about 68 more mortgages.... oh well Happy New Year!

geneer

Mortgage rationing? What mortgage rationing?

But the number of loans for remortgaging declined for the second month in a row to reach 31,154, worth £4.1 billion overall, the lowest figure since June last year.

Uh oh. Could this be the mortgage resets hitting?
People not remortgaging simply because they can't.

Rinoa wrote: »

but Capital Economics are still depressingly negative. No change there then.

Capital economics are being pragmatic and realistic.
Only idiots would think that the funny moneys going to stay cheap forever.

geneer

Mallotum_X wrote: »

You are excited about 68 more mortgages.... oh well Happy New Year!

Damn. Context and analysis.
:rotfl:Its a killer.

wotsthat

geneer wrote: »

Uh oh. Could this be the mortgage resets hitting? People not remortgaging simply because they can't.

I wondered about the low number of re-mortgages. It's a single months data so it probably means little. However, the average UK mortgage holder is paying around 3.6% from memory - maybe it's no so much a case of not being able to remortgage but a case of diminishing returns?