Mortgage Lending Rising Again

Rota

Thrugelmir wrote: »

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.

Wouldn't hold my breath waiting for that.

Bubble_and_Squeak

Rota wrote: »

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

i mentioned walthamstow because its an area i know well having lived there for 20 years and having family still living there. since april asking prices are down around 12%.
this does not show up on the statistics yet for obvious reasons (i can explain if anyone needs me to)
i thought 12% would generally be considered crashy but i could be wrong

Bubble_and_Squeak

Rota wrote: »

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.

and what makes you think the economy will be in full swing?
in case you haven't realised the "recovery" is merely an illusion created with borrowing

Jason74

AndyGuil wrote: »

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.

Just out of interest Andy, what do you do for a living ?

Bubble_and_Squeak

HAMISH_MCTAVISH wrote: »

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"?



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.....

mortgage lending is very low by historical standards, no?

i'm not the sharpest tool and consequently easily confused by numbers. am i to assume that by your second point you are suggesting banks are actually going to be increasing mortgage lending to meet the future price rises?

Bubble_and_Squeak

AndyGuil wrote: »

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.

ah, the old supply outstrips demand in london gambit
if this is such a truism why are prices actually falling?

Rota

Bubble_and_Squeak wrote: »

ah, the old supply outstrips demand in london gambit
if this is such a truism why are prices actually falling?

How much have they fallen in the last year?

Rota

Bubble_and_Squeak wrote: »

and what makes you think the economy will be in full swing?
in case you haven't realised the "recovery" is merely an illusion created with borrowing

You have no idea how finance works then. Which oracle of knowledge are you on HPC?

http://www.telegraph.co.uk/finance/bank-of-england/11030408/Bank-of-England-no-early-interest-rate-rise-as-wages-forecast-slashed.html

"Sustained economic momentum is looking more assured", Mr Carney said on Wednesday. "The economy is returning to a semblance of normality."

Bubble_and_Squeak

Rota wrote: »

You have no idea how finance works then. Which oracle of knowledge are you on HPC?



"Sustained economic momentum is looking more assured", Mr Carney said on Wednesday. "The economy is returning to a semblance of normality."

hahaha quoting mark carney!

Rota

Bubble_and_Squeak wrote: »

i mentioned walthamstow because its an area i know well having lived there for 20 years and having family still living there. since april asking prices are down around 12%.
this does not show up on the statistics yet for obvious reasons (i can explain if anyone needs me to)
i thought 12% would generally be considered crashy but i could be wrong

Wasnt Walthamstow the hottest property spot in London for the last 18 months?

A 12% drop since April is a return to sanity of asking prices.