Mortgage approvals drop 21% in December

mystic_trev

But don't worry, I expect there's a 'Spring bounce' on the way :rolleyes:

http://www.mortgagestrategy.co.uk/cgi-bin/item.cgi?id=157367&d=403&h=401&f=402

With the credit squeeze following five successive increases in interest rates, mortgage borrowing has become even more expensive, and some borrowers are finding themselves unable to access funds.

LandyAndy

mystic_trev wrote: »

But don't worry, I expect there's a 'Spring bounce' on the way :rolleyes:

http://www.mortgagestrategy.co.uk/cgi-bin/item.cgi?id=157367&d=403&h=401&f=402

I can see that dead cat hovering:D .

nobblyned

Don't count your chickens before they hatch...

http://news.bbc.co.uk/1/hi/business/4215223.stm

still higher than Dec 03, Dec 04

adr0ck

so about the same number of mortgage approvals in December 2007 as in December 2003

Is that really right?

adr0ck

with all the doom and gloom at the moment...i'm quite shocked by that

do mortgage approvals include remortgages (is everyone just remortgaging at the mo?)

adr0ck

2003
Jan 74
Feb 86
Mar 108
Apr 111
May 115
Jun 124
Jul 134
Aug 121
Sep 131
Oct 138
Nov 122
Dec 99

2004
Jan 84
Feb 110
Mar 149
Apr 131
May 133
Jun 137
Jul 112
Aug 94
Sep 89
Oct 86
Nov 74
Dec 63

2005
Jan 51
Feb 74
Mar 104
Apr 110
May 109
Jun 117
Jul 107
Aug 110
Sep 110
Oct 109
Nov 116
Dec 90

2006
Jan 78
Feb 97
Mar 143
Apr 109
May 137
Jun 147
Jul 126
Aug 126
Sep 125
Oct 129
Nov 128
Dec 83

2007
Jan 80
Feb 101
Mar 133
Apr 111
May 137
Jun 136
Jul 126
Aug 115
Sep 97
Oct 92
Nov 81
Dec 66

this is number of mortage approvals from bank of england website (must be different from where BBC got their figures from as they don't corresnpond) can anyone help?

clutton_2

december is always the quietest month of the year - most the offices in the country close for nearly 2 weeks - why wouldn;t it be quiet ????

Generali

clutton wrote: »

december is always the quietest month of the year - most the offices in the country close for nearly 2 weeks - why wouldn;t it be quiet ????

I agree - December is always a quiet month and it's very easy to read too much into this.

House prices have got a long way to fall and I think that things will be a lot clearer by May. My prediction is house volumes down massively, GDP growth slowing, house prices showing small price falls in most areas at the land registry and interest rates being cut aggressively.

We'll see.

nobblyned

Found out after I posted that the BBC use BBA figures (British banking association), whereas the quoted report are using BoE reference figures. Not sure why they are different, and didn't have the time to find out.

Think from the BoE figures posted above that these kind of falls have been seen in December's numbers for the last few years, and that the absolute numbers are still above Dec 04.

The interesting numbers are still to come. Continuing decline, or 05 style bounce back?

Generali

The BoE produces 3 sets of figures for secured lending to individuals: loans approved for house purchase; loans for other purposes (MEW) and remortgaging (getting a better rate but may include MEW).

These numbers won't include anything done through a business so where a BTLer uses a limited company or a developer is buying through a company of some sort won't show I believe.