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Mortgage approvals +23% in June - Good news keeps coming!
HAMISH_MCTAVISH
Posts: 28,592 Forumite
A SURGE in home loans is predicted to send UK house prices soaring in the latest sign of economic recovery.
:beer:
House loans rose by 23 per cent in June .
Good news.
Analysts say this shows Government attempts to get banks lending properly are finally working.
Absolutely correct.
And very good news.
In a boost for first-time buyers, mortgages to borrowers with less than 15 per cent of a deposit were up 47 per cent on June 2012.
Even better news.
Still a very long way to go however.
But getting the cash together for a deposit — the average first-time buyer needs to find £27,178 — remains tough for many.
That's because the average deposit is still 20%, thanks to mortgage rationing.
If most people could get mortgages with smaller percentages, the average deposit would be smaller.
A 10% deposit would be £13.7K
A 5% deposit would be just £6.5k.
And the e.surv figures also reveal some areas of Britain are not enjoying the home loan boom.
The increase in lending is skewed toward the South East and London, where more people are able to meet strict lending criteria.
Some regions — particularly in the North of England — are mortgage blackspots, with banks afraid to lend no matter how strong the borrower’s track record
Very worrying that we're still seeing "mortgage apartheid" with lending up north being discriminated against, TPTB really must do more to drive economic progress in the North as well as in the SE, and getting lending moving again is a big part of that.
Read more: http://www.thesun.co.uk/sol/homepage/news/money/5009105/mortgage-increase-boost-home-prices.html#ixzz2YopziThH[
“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”
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
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Comments
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It would be good news if it also didn't send house prices soaring, in which case it's not good news for FTB'ers as we see another pyramid scheme forming in the UK housing market.0
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shortchanged wrote: »It would be good news if it also didn't send house prices soaring, in which case it's not good news for FTB'ers as we see another pyramid scheme forming in the UK housing market.
Dr. Spock once said "The needs of the many outweigh the needs of the few".0 -
OffGridLiving wrote: »Dr. Spock once said "The needs of the many outweigh the needs of the few".
I think you mean Mr Spock.0 -
OffGridLiving wrote: »Dr. Spock once said "The needs of the many outweigh the needs of the few".
That doesn't always make it right.
So to line the pockets of others, FTB'ers are expected to take on massive debts to fund the lifestyles of people further up the chain.0 -
shortchanged wrote: »So to line the pockets of others, FTB'ers are expected to take on massive debts to fund the lifestyles of people further up the chain.
I'm 'further up the chain' - how are FTB's funding my lifestyle?0 -
I'm 'further up the chain' - how are FTB's funding my lifestyle?
The higher prices that FTB'ers have to pay for houses of course filters up the pyramid.
Owners further up the chain can cash in on this by mewing as their property increases in value.
The housing market is in many ways very similar to these pyramid schemes.
It is the people coming in at the bottom (FTB'ers) who are providing the profits for those further up the pyramid.
This is why McTavish and co are so keen to get FTB'ers paying high prices for property so that they can fund his lifestyle. Of course he pretends that he wants it for the FTB'ers benefits.0 -
shortchanged wrote: »It would be good news if it also didn't send house prices soaring, in which case it's not good news for FTB'ers as we see another pyramid scheme forming in the UK housing market.
It's not now, never has been, and never can be, a "pyramid scheme".
Unless we find a way of abolishing death, all housing assets and wealth will always recycle to younger generations.
It can be better described as a hosepipe, through which bulges of higher or lower pressure move.
To illustrate this point we'll use 30 years old potential homebuyers, the age is irrelevant however as you could move the years to account for lower or higher ages, and the figures would remain virtually the same.
In 1977 there were 956,700 30 year olds in the UK. (Boomer peak)
By 1982 this had fallen to 744,000.
By 1995 it had risen to 948,000 (Generation X peak)
By 2008 it had fallen to 748,000
By 2021 it will be 998,000. (Generation Y peak)
And by 2031 it will fall back to 839,000.
etc“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”0 -
shortchanged wrote: »That doesn't always make it right.
So to line the pockets of others, FTB'ers are expected to take on massive debts to fund the lifestyles of people further up the chain.
Has it ever been any different?Official MR B fan club,dont go............................0 -
Has it ever been any different?
Maybe not.
But the question is has it ever been any worse?
The fact that so many schemes are needed to get FTB'ers onto the housing market shows that something is failing miserably. And that unfortunately is house prices being too high.0 -
shortchanged wrote: »
The fact that so many schemes are needed to get FTB'ers onto the housing market shows that something is failing miserably. .
Yes.
The mortgage market has failed miserably, and has not yet been fully repaired.
Which is why house prices are artificially low.“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”0
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