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Gross Mortgage Lending Figures

Thrugelmir
Thrugelmir Posts: 89,546 Forumite
Part of the Furniture 10,000 Posts Name Dropper Photogenic
in Debate House Prices & the Economy
Thought posting up the Gross Mortgage Lending figures (as published by CML) on a regular basis would be a useful piece of information.

The figures are gross. So not include any repayments or redemptions. However give an indication as to activity levels.

Gross mortgage lending
Total
£m
Year
2001 160,123
2002 220,737
2003 277,342
2004 291,249
2005 288,280
2006 345,355
2007 362,758
2008 254,022
2009 143,276
2010 135,342
2011 140,918
2012 105,715 9 months to 30th September.
«1

Comments

  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Thrugelmir wrote: »
    Thought posting up the Gross Mortgage Lending figures (as published by CML) on a regular basis would be a useful piece of information. .

    Not useful at all.

    In fact, it's really just a shallow attempt at bearish spin.

    The factor which influences the housing market is lending for new purchases.

    And while still well down from peak, it has recovered dramatically from the lows of late 2008 and early 2009, and continues to improve.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • the_flying_pig
    the_flying_pig Posts: 2,349 Forumite
    Interesting that recent yrs' totals only c 10% down on 2001. Begs question as to what 'normal' should be. Say £200-something bn? Still sounds like a big number given our £1.5trn pa economy, maybe?
    FACT.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Shows the rise and fall of mortgage lending. Also shows why the market moved price wise.

    Membership of CML is down a third from the peak in 2007.

    International banks have left the UK mortgage market (permanently).

    Demise of certain UK lenders is well documented.
  • Buffett
    Buffett Posts: 88 Forumite
    In my opinion this shows how it is consumer deleveraging holding back the UK economy - not government austerity!
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Buffett wrote: »
    In my opinion this shows how it is consumer deleveraging holding back the UK economy - not government austerity!

    Net mortgage debt is greater now than 2008.
  • Buffett
    Buffett Posts: 88 Forumite
    Thrugelmir wrote: »
    Net mortgage debt is greater now than 2008.

    That's the opposite of what I've been reading which is that Net mortgage lending is negative and mortgages are being repaid at a record rate.
  • Buffett
    Buffett Posts: 88 Forumite
    Growth of lending so low it essentially means people are deleveraging?

    CHART2.gif
    Chart from Bank of England
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    Buffett wrote: »
    Growth of lending so low it essentially means people are deleveraging?

    CHART2.gif
    Chart from Bank of England



    the graph seems to show 'growth' albeit at a low rate
  • Buffett
    Buffett Posts: 88 Forumite
    Is 'growth' below the rate of inflation really growth?
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    Buffett wrote: »
    Is 'growth' below the rate of inflation really growth?


    there is an reasonable argument about whether price inflation or wage inflation comes into the equation

    however, it doesn't seem to show that mortgages are being paid off in aggregate at a 'record rate' (if 'record rate' implies at a fast rate)
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