The frustration felt by many individuals that banks still do not seem to be lending in sufficient quantities is still evident in the latest Lending To Individuals figures from the Bank of England, which explains the frustration felt by many would-be borrowers.
Just 47,643 loans were approved for house purchases and a mere 29,949 loans for remortgages meaning that both sets of figures have now dropped below their previous 6 months average.
First-time buyers have every right to feel discriminated against, as while mortgage lending has become more profitable for many lenders, it is too often targeted at those customers who are already well catered for. Lenders are continuing to walk the easy path.
Posted in Bank of England Lending Figures, Best Mortgage Rates, Coreco, First Time Buyers, House Prices, Mortgage Brokers in London, Property Market | Also tagged Bank of England, First Time Buyers, House Prices, London Mortgage Broker, Mortgage Market, Property Market |
I have just spent this morning looking at the much anticipated new FSA proposals for the mortgage industry, which weighing in at 118 pages is a healthy size, (actually my scan reading powers were put to the test to be honest!)
Whilst the majority of the proposals in themselves are not unexpected, the key will be in their implementation to ensure they benefit not only the industry, but ultimately the consumer.
We all know that there has been a need for a while now to drive out the darker elements and re-professionalise the mortgage industry, especially at a time when more and more people need advice.
Last week I found myself on stage as part of a panel addressing 50 of Australia’s top mortgage brokers who were interested in how their own impending regulation will impact them. What they soon realised, a year after Lehman’s went, (a year tomorrow 15th actually), was just how lucky they have been and how hard things have been here.
As I am sure you can imagine, the Aussies were not shy in coming forward and the questions were fast, furious, incisive and intelligent. I was very grateful to have met such a great bunch of people and whilst I left with visions of answering the phone Coreco Sydney in my beach wear and thongs it was a sharp reminder how a year ago we all seemed to fall off a cliff with no parachute.
Yesterday the main news was all about the fact that the UK’s obsession with borrowing seems to be at an end, or at least put very firmly on ice. The latest figures showed that for the first time since records began in 1993, debt repayments outstripped borrowing.
The Evening Standard called this an historic “Micawber Moment”, after the Dickens character in David Copperfield who “lectures on the benefits of financial prudence”.
Figures from the Council of Mortgage Lenders, (CML) today show that gross mortgage lending in June was an estimated £12.3 billion, a 17% increase from £10.5 billion in April and a 48% decline from £24.8 billion in June 2008. The last two quarters have held steady, albeit at low levels.
Whilst there has been some tentative positive news emerging from the housing market in recent days, these latest figures reflect more of a seasonal jump than a long-term improvement. There is still no doubt that lenders are not lending enough to meet consumer demand and where lending is taking place, this is often at seemingly expensive levels. A sustained increase in lenders willingness to lend is vital to help provide the boost to the economy that is sorely needed.
Andrew Montlake, Communications Director at Coreco and ‘Mortgage Personality of the Year 2008’, gives his views — honest and no holds barred — on the latest developments within the mortgage and property markets.
