UK Mortgage Lending Drops in November

Article 2010-12-22, 14:59:00

Official figures reported by the Council of Mortgage Lenders (CML) that mortgage lending has fallen 5% in November from the previous month.

Throughout November just over £11bn was loaned out for mortgages, currently down on October’s figures, when £11.6bn was loaned out.

This shows a 10% drop from £12.3bn in November 2009 and is the slowest pace of growth since November 2000 and the 5th consecutive month, of which total advances were at the lowest level for that month for a decade.

The current lack in mortgage lending is reflected in house prices, were all measures show prices falling in the second part of the year with prices flat at broadly the same level as last year.

Recently, Right Move, the property website has reported a 3% fall in asking prices throughout November.

The CML said that it is expects mortgage lending to continue very much the same throughout 2011.

Mortgages set to rise

Article 2010-02-18, 16:08:00

Mortgages have been forecast to rise considerably within the next three years.
With the UK’s emergence from recession, the housing market has also seen surprisingly positive results. The housing market has seen many ups and downs and has also endured a massive slump throughout 2009. The economy has only just surfaced from a dire situation financially and has in fact created space for mortgage lending to increase and therefore prices to be pushed up. This spells good news for many property owners across the country, as many have struggled through the past 18 months and are now looking forward to a brighter future.
With the financial position in the UK continually changing, it is difficult to make accurate predictions. Many forecasts have proved incorrect throughout the previous 18 months. The economy is still extremely unstable and it is therefore increasingly difficult to make accurate predictions.

As a result of this unpredictability it has become a difficult task for economists to attempt to place some kind of bearing on the economy and set achievable goals. This in particular is becoming problematic and creating an extremely difficult situation for economists hoping to find solutions to the financial issues faced.It is increasingly difficult to find solutions when the guidelines continue to shift.

As UK unemployment levels drop, house prices go up as a knock on effect. As house prices rise, mortgage lending increases and the economy is able to retrieve some ground.

The economy has to begin to take steps forward and provide solutions to prevent a reoccurrence of the near economic collapse seen in 2009. There are several different options for the government and officials to look into and consider. The most apparent option currently being put forward is a tax levy placed upon all large insurers and banks which would go towards covering the cost of another financial crisis rather than tax payer’s money having to bail out the economy again.

Mortgage lending sees surprising results.

Article 2010-02-02, 09:39:00

It would appear that mortgage lending is set to rise again in 2010 despite the warnings from economists and leading market experts who forecast another slump in the market this year. In actual fact there has been a rise in lending as unemployment levels fall, mortgage lending levels increase. More individuals in work, means a higher probability that people will make the commitment to take on a mortgage. Throughout 2009 there has been much hesitance to make any kind of financial commitments and rightly so as redundancies and pay cuts have been rife. Individuals are simply not willing to take the plunge and risk racking up huge debts or placing themselves in a position where they could be faced with mortgage repayments that they cannot meet. Mortgage lending increases are a positive sign that the economy is definitely improving.
In actual fact there have been some signs of improvement throughout the economy. The dropping rates in UK unemployment provide a good example of this. It was predicted that the rates of unemployment would rise and bring a further slump in the economy, but surprisingly there has in fact been a rise within the initial part of 2010. Economists are not confident that these positive signs can continue. The plan set out by the government is to cut the public spending budget deficit by fifty percent within four years. As a direct result of this, it is inevitable that some markets, such as the housing market will encounter detrimental side effects.

©2007 Discovery Re Mortgages UK