Mortgage Lending Rising Again

AndyGuil

Bubble_and_Squeak wrote: »

are you for real???

Supply and demand. A bit like timing to a buy a holiday, it is affected by seasons. Right now as typical this time of year we are sitting on peak supply with least demand. The demand is still strong but right now you have the least competition. However we are seeing post MMR mortgages filtering through so the demand is going up.

padington

Bubble_and_Squeak wrote: »

are you for real???

You can lead her to water but she sure doesn't like doesn't like thinking.

Bubble_and_Squeak

AndyGuil wrote: »

Supply and demand. A bit like timing to a buy a holiday, it is affected by seasons. Right now as typical this time of year we are sitting on peak supply with least demand. The demand is still strong but right now you have the least competition. However we are seeing post MMR mortgages filtering through so the demand is going up.

now that the hot money flow into london has ceased to be, funding for lending is winding down, banks are reducing mortgage lending and mmr is stress testing where do you suppose the money to buy overpriced housing is going to come from?

Rota

Bubble_and_Squeak wrote: »

these figures certainly contradict what i'm seeing on the ground here in east london so i assume there is a time lag factor in play

supply up and prices notably down

walthamstow in particular is looking very crashy in terms of asking prices

Walthamstow has gone up how many % in the last 12 months? I dont know what "crashy" looks like. Can you explain?

Rota

Bubble_and_Squeak wrote: »

now that the hot money flow into london has ceased to be, funding for lending is winding down, banks are reducing mortgage lending and mmr is stress testing where do you suppose the money to buy overpriced housing is going to come from?

I say (London) flattens out here for a while, which is welcome. You know what will happen with MMR as I do. Eventually the criteria will get relaxed, by then the economy will be in full swing and the party starts again. Do we get a correction in there at some stage? Maybe, maybe not.

HAMISH_MCTAVISH

Bubble_and_Squeak wrote: »

banks are reducing mortgage lending and mmr is stress testing

Yet mortgage lending has increased.

As the article clearly notes.

FTB lending is up, house-mover lending is up, and BTL lending is up.

Given that all three categories of mortgage lending show an increase both month on month and year on year, how do you reconcile that with your (clearly incorrect) view that "banks are reducing mortgage lending"?

where do you suppose the money to buy overpriced housing is going to come from?

The BOE has recently effectively capped mortgage lending LTI at 4.5 times applicant income.....

Actually, to be clear, what it's done is say that banks can't hold more than 15% of loans above 4.5 times applicant income (which can be joint applicants).

Banks currently hold just 8% of loans above 4.5 times applicant income. The average for FTB-s is currently just 3.47, and the average for 2TB's is less than 3.0.

There is a long, long way for prices to rise yet before those lending caps come in to play.....

IronWolf

I guess MMR isnt talking about the vaccine???

AndyGuil

Bubble_and_Squeak wrote: »

now that the hot money flow into london has ceased to be, funding for lending is winding down, banks are reducing mortgage lending and mmr is stress testing where do you suppose the money to buy overpriced housing is going to come from?

The highest demand is in London. It outstrips supply and is far greater the rest of the country. Only a couple of other places in the UK are up with London for demand. The market cycles throughout the year and it will shortly enter a new cycle as the demand starts rising and supply falling again in Autumn.

alberty

The only thing that can reverse London prices now is future transport technology to bring people in and out quickly from all corners of the UK, and maybe europe within 1hr for £7 return. Or maybe trains with built-in houses that people live in, or a train with a crane that picks up your mobile home from up north while you sleep and parks it in the london area ready for you to wake up and go to work. It's going to happen.

Thrugelmir

Rota wrote: »

Eventually the criteria will get relaxed,

FCA has even started on unsecured lending yet. Primary focus beng payday lenders currently. Wait till they get their teeth into credit cards, 0% balance transfers, credit availability with the same affordability rules as mortgages.