Home Loans Up 14% On This Time Last Year

Thrugelmir

Pimperne1 wrote: »

What was net mortgage lending in Jan 2012?

£700 million.

At the peak in 2006. Net mortgage lending totalled £110 billion. To put todays numbers in perspective.

Sibley

Another positive step in the right direction.

CRASH_BANG_WALLOP

Sibley wrote: »

Another positive step in the right direction.

dude did you even read the article. have some FAIL mr ree

Generali

Joeskeppi wrote: »

This might be a silly question, but is there actually any correlation between these lending figures that people like to bang on about and house prices?

Generally there is a positive correlation between net mortgage lending and house prices. Whether house price rises cause net lending to rise or inceasing net mortgage lending causes house prices to rise is a moot point however.

If prices rise, clearly buyers going up the ladder or FTBs will have to borrow more. Another way to look at it is that if more money is going into the housing market, that pushes up demand which pushes up house prices.

AIUI, nobody knows which way round it goes. Also, correlation isn't the same as causation so a third factor might drive lending and house prices upwards.

RenovationMan

I'd imagine there will be quite a bit of activity over the next couple of months if HBOS et al customers move off their SVR rates and onto new products.