Soaring mortgage demand... Banks unable to meet it though.

HAMISH_MCTAVISH

. High street banks have reported an increase in demand for mortgages this year, but have admitted they won’t be able to cater for it.

http://www.myintroducer.com/view.asp?ID=9698

There is no shortage of demand form people willing and able to take on loans.

Just a shortage of money to lend them.

chewmylegoff

its difficult to know what the correct reasons for the recent falls in mortgage applications are as they only publish the number of mortgages granted, not the number of people who attempted to get a mortgage but were told to sod right off.

i suspect though that the true reason is that:

(i) the amount of money that banks were willing to lend on property <£125k at high LTV; and

(ii) the number of people who wanted to buy houses in that band right now

are both falling. i suspect (ii) isn't really falling but that some of the demand was moved forwards a couple of months by the stamp duty situation so a couple of months showed increases and now a couple of months have showed falls.

HAMISH_MCTAVISH

I would love to see the mortgage rejection statistics for the last few years, but sadly the banks are not required to report them.

I'd be prepared to bet at least 90% of applications are rejected for 10% deposits or lower.

And that north of 50% of applications are rejected overall.

shortchanged_2

HAMISH_MCTAVISH wrote: »

I would love to see the mortgage rejection statistics for the last few years, but sadly the banks are not required to report them.

I'd be prepared to bet at least 90% of applications are rejected for 10% deposits or lower.

And that north of 50% of applications are rejected overall.

Would it be anything to do with surveyors not agreeing with the price that vendors are asking for their properties?

chewmylegoff

HAMISH_MCTAVISH wrote: »

I would love to see the mortgage rejection statistics for the last few years, but sadly the banks are not required to report them.

I'd be prepared to bet at least 90% of applications are rejected for 10% deposits or lower.

And that north of 50% of applications are rejected overall.

even if they did report formal rejections that wouldn't really tell the whole story as you wouldn't ever keep track of the number of people (who were actually in some sort of a position to buy, not people who wondered whether they could get a £250k mortgage with their JSA and no deposit) who'd been in to talk to a mortgage bod at a bank to ask about a mortgage in principal, and then been told not to bother applying.

HAMISH_MCTAVISH

shortchanged wrote: »

Would it be anything to do with surveyors not agreeing with the price that vendors are asking for their properties?

No, it would be everything to do with banks having to ration mortgages as the demand for them exceeds the supply of funds to lend.

PasturesNew

Shortage of money probably caused by people with money taking it out to buy houses as interest rates were !!!!.

HAMISH_MCTAVISH

chewmylegoff wrote: »

even if they did report formal rejections that wouldn't really tell the whole story as you wouldn't ever keep track of the number of people (who were actually in some sort of a position to buy, not people who wondered whether they could get a £250k mortgage with their JSA and no deposit) who'd been in to talk to a mortgage bod at a bank to ask about a mortgage in principal, and then been told not to bother applying.

True.

And the banks would also no doubt fiddle the figures as they're currently doing with commercial lending.

Where small businesses apply for lending, only to have it approved on rates so high and terms so onerous nobody in their right mind would agree.

Graham_Devon

HAMISH_MCTAVISH wrote: »

I would love to see the mortgage rejection statistics for the last few years, but sadly the banks are not required to report them.

I'd be prepared to bet at least 90% of applications are rejected for 10% deposits or lower.

And that north of 50% of applications are rejected overall.

You've just stated this one another thread...

HAMISH_MCTAVISH wrote: »

Macaque, businesses should be free to hire the best candidate for the job if those people are here legally. You want to force them to hire only young people with British citizenship.

Should business not be free to lend to whoever they want?

Or do you change your tune dependant on what it effects...or more to the point...how it effects you?

Percy1983

HAMISH_MCTAVISH wrote: »

I would love to see the mortgage rejection statistics for the last few years, but sadly the banks are not required to report them.

I'd be prepared to bet at least 90% of applications are rejected for 10% deposits or lower.

And that north of 50% of applications are rejected overall.

You are aware you have just put me in the upper 10% of your sample.

ILW

HAMISH_MCTAVISH wrote: »

True.

And the banks would also no doubt fiddle the figures as they're currently doing with commercial lending.

Where small businesses apply for lending, only to have it approved on rates so high and terms so onerous nobody in their right mind would agree.

Is that not the demand and supply argument you always tell us about housing? If something is in short supply (money) it should rise in price until demand equals out. Currently does not seem to happen with the mortgage market for some reason.