How much new money is available for mortgages today.

homelessskilledworker

I have a question for some of the more financial savvy members on this board, please uber Bulls stay away from this one unless you have as a serious factial contribution as this not a Bear v's Bull bunfight question.

Today, how much new money is available for mortgage lending as a whole?

If you was to use 2005/6 ish as a reference point when we were close to a maximum peak with the amount that was being loaned, and say for one year the figure was 100 pts, then what would that number be now.

I would suggest the figure on pure guess work would be around 40pts to 50pts, but I really cannot find any data on this

Any thoughts?

brit1234

I do know that more people are saving despite the BOE and governments wishes, providing banks with more money to lend. Howeverbanks use to borrow more money internationally to lend in mortgages in 2007, I believe this figure has fallen and they also need to keep far more capital now under Basil#&#etc.

FTBFun

brit1234 wrote: »

I believe this figure has fallen and they also need to keep far more capital now under Basil#&#etc.

I'm not sure this makes much difference to hotels in the Torbay area.

System

That's Torquay, heathen.

Thrugelmir

homelessskilledworker wrote: »

Today, how much new money is available for mortgage lending as a whole?

There's no new money. Banks overall are contracting asset books. They will continue to do so for the foreseeable future.

The membership of the CML has reduced by a third since 2007. As foreign banks and other specialist lenders withdrew from the mortgage market.

homelessskilledworker

Thrugelmir wrote: »

There's no new money. Banks overall are contracting asset books. They will continue to do so for the foreseeable future.

The membership of the CML has reduced by a third since 2007. As foreign banks and other specialist lenders withdrew from the mortgage market.

Oh come on Thrugelmir, I did ask the Bulls not to be silly, so I suppose I should say the same to the Bears:)

There is money out there for mortages, even on the worse day of the worst month of the worst year there will be money available.
I would like some hard data as to how much though, my suspicion is that there is no hard figures out there.

Like I said if we was working of a points system with 2006 being 100pts, how many points is available. I really have a suspicion that could even be well less than 50pts.

Thrugelmir

homelessskilledworker wrote: »

Oh come on Thrugelmir, I did ask the Bulls not to be silly, so I suppose I should say the same to the Bears:)

Well you did ask.

Today, how much new money is available for mortgage lending as a whole?

Conrad

I don't have any hard fugures but I can tell you that costly lender reps come and see me to tout for any new business I might bwant to put thier way, so most lenders do have the capacity to lend.

The bigger picture which most people are unaware of is that it is FSA regulation that has put mortgages beyond the reach of millions of folk.

Keep in mind that all the stats show a tiny monoirty of repossessions come about, so if we accept the FSA have managed to avoid a small number of repos as a result of tighter lending, we must also be mindful that millions of folk are now forced to rent thanks to OTT regulation.*

In other words FSA rules have given a modest benefit in return for a huge detriment to ordinary people that according to history would in the main have never got anywhere near a repossession hearing.

Unfortunately no one in Government is aware of this issue, so nothing is going to change.

* - awaits bear to tell us the UK had a largely disorderly mortgage market but that of course cannot prove it

wotsthat

Gross mortgage lending in November totalled an estimated £13.0 billion, with the monthly figure showing its fourth consecutive year-on-year rise, according to the Council of Mortgage Lenders. This is 5% higher than in October, and 13% higher than in November 2010.
Publishing its housing and mortgage market forecast update, the CML confirmed that it now expects gross lending in 2011 to total £138 billion, with net lending of £9 billion. For 2012, the CML's new central forecast is for £133 billion of gross lending and £5 billion of net lending, representing the weaker economic backdrop that now seems likely. However, with so much economic uncertainty at present, this is subject to considerable variation in either direction.

www.cml.org.uk

abaxas

The problem is that mortgages used to be priced to make money from churn when now companies actually require proper underwriting.

Thrugelmir

Conrad wrote: »

* - awaits bear to tell us the UK had a largely disorderly mortgage market but that of course cannot prove it

Not sure that disorderly is a word that I would use. Reckless may be more appropriate.