Figures Offer Contrasting Pictures On Mortgage Lending
Keywords: mortgage, borrowing, figures, are, different, depending, on, source
The Council of Mortgage Lenders (CML), British Bankers’ Association (BBA) and the Building Societies Association (BSA) have all released their latest lending information today, with the CML suggesting consumer attitudes to loans are very different to those noted by the BBA and BSA.
According to the BSA, lending in June was impacted by higher interest rates following the decision by the Bank of England’s monetary policy committee (MPC) to raise the base rate of interest a number of times this year. Both January and May saw 0.25 per cent rises in the interest rate, something that added to the continuation of sluggish summer lending.
“The slow start to the summer has continued”, said Brian Morris, head of savings policy at the BSA. “Typically, building societies are maintaining robust lending criteria and this is a possible explanation of the recent slowdown in building society lending”.
Year-on-year this “slowdown” was seen in a fall in gross advances, net advances and approvals, all related to consumers seeking home loans for the purchase of a new property during June 2007. Following July’s interest rate increase and speculation about a further rise in the near future, according to Mr Morris, “lending may well cool further over the remainder of the year and into 2008″.
This concept of reduced lending in the form of home loans or other forms of credit was something also witnessed by the BBA in June, with the association claiming that although mortgage lending and lending to the private sector as a whole increased during June, it was below the trend that could have been expected following what the BBA called a “strong rise” in mortgage lending in May. “The contrast between May’s strong rise in mortgage lending and a much weaker figure in June makes it difficult to gauge the current impact of higher interest rates on mortgage demand but we’ve seen the trend gradually slowing since the turn of the year”, BBA director of statistics David Dooks said.
Borrowing through methods other than secured loans, such as via credit cards, loans and overdrafts, was found to be “relatively flat”, according to Mr Dooks, with the BBA recording a 0.1 billion pounds fall in credit card borrowing and a 0.1 billion pounds rise in loans and overdraft use. The BBA saw mortgage lending rise by an underlying 5.1 billion in June, below the monthly average of 5.3 billion.
However, figures from the CML seem to offer a contrast to those from the two associations above. In June, the organisation saw mortgage lending reach a “new record” of 34.2 billion pounds, a nine per cent rise on May’s figures for home loans. Despite this, it was a lower percentage increase than noted in previous Junes, the CML notes, voicing a warning about any future interest rate rises.
“While the markets still expect one more interest rate rise before the end of the year, we believe the monetary policy committee should carefully assess the impact of past rises on inflationary pressures before it takes further action. In the meantime, borrowers should be thinking seriously about how they will afford higher mortgage payments if they come out of a fixed-rate deal this year”, said CML director general Michael Coogan.
Last month, figures from Moneyextra suggested that remortgaging was growing in popularity in the UK, with a 7.19 per cent rise in the borrowing method noted year-on-year.
Abbi Rouse writes for Loan-Arrangers .co.uk where visitors can compare loans online. Then apply for the best rate secured loans and bad credit loans available. Visit our site news.loan-arrangers.co.uk
Previous Articles Highlighter:
The Little Secret About Bonds (1)
If you are buying a government bond, such as a Treasury Bill, claim status is irrelevant, because the odds of the Federal Government going bankrupt are slim and none. If you are buying a corporate bond, however, there is always a chance that the issuer could go out of business.
Debt Consolidation Using The Snowball Procedure (2)
The obvious one, of method, is to simply pay down your bills. That can be difficult, and for a majority of people it may seem hopeless, but there is one scheme that has been employed by many with much success and that is the snowball approach (so named by Dave Ramsey).
3 Things To Look For When Purchasing A New Florida Home (3)
If you decide to purchase a home that is at the top of your price range, you should be reasonably certain that the home will not require any major repairs.
Overcoming The Myths Of Receivables Factoring (4)
Should a customer who is unfamiliar with factoring question the notice and ask what is going on, the owner or manager only needs to tell them they have chosen to use a company to manage and finance their accounts receivable.
New Tax For Andorra (5)
If someone stays a resident for fifteen years there will be no capital gains tax at all to pay on the increase of their property value.' Buying a property in Andorra is often seen as a route to residency, which entitles people to live in Andorra and benefit from her tax haven status.
Debt Consolidation What Is The Correct Amount Of Debt? (6)
They look at default rates, current interest rates and carefully check credit history when they make loans available, borrowers can benefit by following many aspects of their strategy. 5 Factors to consider with when calculating your correct amount of debt.
Alternative Student Loans For Bad Credit Can Make The Difference (7)
One option would be to take the more expensive alternative student loans for bad credit and then reschedule the loan at the end of the course with a student loan consolidator.
Invoicing Methods And Factoring (8)
If the work has not been satisfactorily completed, the customer likely will not pay the entire amount, if at all because there are too many "outs". The factoring company has advanced a significant amount of funds up front, so they are left holding the bag when the customer refuses to pay.
Forex Trading - Keeping Disciplined On The Forex Market (9)
Sticking to one particular strategy(and there are loads, which we won't have to go through today, but you can learn about them for free all over the internet) making sure you are never opening trades that you can't afford, will give you a chance to understand how the forex market works and eventually after a firm understanding of the basic principles, you will be able to spot a good trade from a bad one just like how a mechanic spots a problem in an engine.
Families Borrow Big Despite Economic Pressures (10)
Keywords: credit, cards, personal, loans, secured, cebt Families in Britain "continue to borrow big and spend bigger" despite the fact that economic pressures have grown on them in recent times, new research has revealed.
Introduction To Mutual Fund Investing (11)
There are also funds that are comprised of stocks that have a similar market capitalization (such as mid-cap funds, large-cap funds, or small-cap funds). And some might contain several different types of securities (such as stocks, bonds, etc.) that all fall within the same risk classification (high-risk, medium-risk, low-risk).
Borrowers In Southern England 'Face Increasing House Costs' (12)
Keywords: house, prices, soar, loans, home, secured, personal, southern, england Property in the Greater London region has surpassed the 300,000 pounds barrier for the first time, new figures indicate. According to the latest Halifax House Price Index, the average home in the capital and surrounding towns rose to 313,122 pounds during the second quarter of 2007 - a figure which was mainly contributed to by the strength of London's economy.
Finance - How To Keep Up Monthy Payments (13)
Paying off more than the minimum amount when it comes to loans and credit cards will reduce the length of time you have to pay on the loan or credit card it will also help your credit score if the loan is paid off on time and the repayment deadlines are met each month.
UK Loans Cheapest In The World (14)
These facilities are not always available for other nationalities, with consumers in Finland unable to access current accounts while on holiday and instant-access saving accounts are rarities in America. The study noted that financial services firms in the UK give clearer advice to customers, presenting breakdowns of fees in a more transparent way than banks in the ten other countries included in the research.
Read The Fine Print In Equipment Lease Contracts (15)
Know What you Want: Expand your knowledge. Know your lessor. Will upgrades and additional needs be provided? Will the lessor help with regulatory changes? What about flexibility at the end of the lease?
Britons Must 'Learn' To Cut Spending As Interest Rates Predicted To Rise (16)
Keywords: interest, tares, predicted, to, rise Interest rates are set to go beyond the six per cent barrier by the end of 2007, according to a new survey. In a study carried out by the Independent on Sunday, economists from Ernst & Young, HBOS, JP Morgan, Barclays, Royal Bank of Scotland and Merrill Lynch were reported to believe that the Bank of England's monetary policy committee (MPC) will increase the base rate by at least a quarter of a percentage point before the end of this year, which consequently could increase pressure paying back secured loans for a number of consumers.
Settlements, Notes, And Lotteries OH MY (17)
PPicash offers valuable information and tools to cash out structured settlements, sell notes or to deal with lottery payments. Learn how to properly manage these financial instruments and take charge of your financial future.
How You Can Make Money Trading Forex While Working A Day Job (18)
Here is what you need to do, pick several of your favourite pairs to trade, limit yourself to 1 good trade a week, this means your trade needs to be planed and have good technical reasons for price to go in your favour.
Accounts Receivable Factoring- An Alternative To Bank Financing (19)
Take advantage of volume and early payment discounts - With improved cash flow, you will be in a position to take advantage of these discounts which directly effect the bottom line.
Studying Student Loans Consolidation (20)
People often refer to federal student loans consolidation as refinancing, but this is not entirely correct. With this form of loan debt consolidation, your loan rate will not change, regardless of how different your previous loans were.
Newer Articles Highlighter:
Free Home Foreclosure Listing: Valuable Information? (1)
Keywords: free home foreclosure listing The foreclosed home buying market is tight. And for good reason. Many people have learned that they can buy properties for a fraction of their value if they buy foreclosure or foreclosed properties.
'Less People' Switching Financial Suppliers (2)
Choosing the right product for you is just as important as choosing the cheapest one - and never more so when money is tight and long-term financial decisions are more important," he added.
Debt Ridden Brits Reside In Overdrafts (3)
Higher repayments on home loans were cited by the organisation as the potential reason why so many borrowers go overdrawn. "It's no surprise so many people are permanently in the red - with interest rates having risen five times in the past year consumers are no doubt feeling the squeeze", said head of current accounts Kevin Mountford.
There Is No Due On Sale Jail (4)
Keywords: due on sale clause, preforeclosures, foreclosures, make money in real estate, short sale courses The "due-on-sale" clause is probably the most talked about, feared and misunderstood topic in real estate.
Tracker Mortgages Could Be 'Attractive' Choice For Borrowers (5)
Earlier this month, Moneyfacts analyst Lisa Taylor suggested that while opting for a fixed-rate product on a contract of between 25 to 30 years can offer homeowners "peace of mind", they could find pressure to make monthly mortgage repayments increasing should the MPC choose to lower interest rates in the coming years.
Fall Noted In Property Price Growth (6)
Meanwhile, the north and north-west have seen the lowest annual growth with increases of 5.9 and 5.1 per cent respectively. Miles Shipside, Rightmove commercial director, said: "Shortages of supply will remain more acute in the capital, as suitable building land is harder to come by and demand will continue to grow as the City strives to become the financial capital of the world.
Buyers Need To Insure Property Is 'Affordable Now And In The Future' (7)
However, he suggested that following five base rate rises from the Bank of England over the last 12 months and predictions of further increases to come, consumers should ensure that they will be able to make mortgage repayments.
Hedge Funds Growth Open Doors To New Financing Options (8)
These factors have enabled hedge funds to expand their financing beyond the traditional choices of collateralized loans through prime brokers, investors' equity, and their own capital. Bharat Book Bureau has released a report called "Hedge Funds and Prime Brokers", the report explores the ever-changing and dynamic hedge fund-prime broker relationship through the use of a panel comprising of some of the world's experts in investment, law and regulation.
How To Protect Yourself From The Ever Increasing Credit Card Fraud (9)
One of the simplest ways that you can guard against fraud is to always be sure to go over your credit card statements and check the purchases made. It is easy to quickly discover any fraud if you are diligent in doing this.
Homeowners Selling Property 'To Avoid Rising Mortgage Costs' (10)
Keywords: selling, property, to, avoid, rising, mortgage, costs Thousands of consumers are selling their property as they are unable to keep up with increasing mortgage costs, according to new figures. Research carried out by Moore Blatch suggests that for every home which was repossessed last year at least an equal proportion were sold as owners struggled to make secured loan repayments.
Fall Noted In Borrowing Outlook (11)
According to GfK NOP's latest UK Financial Activity Bulletin (FAB) carried out for JGFR, an estimated 35.5 million Britons are expecting to do at least one of the above actions over the next six months, a fall from the 39.5 million recorded this time last year.
How Do You Get The Best Credit Card Rates? (12)
What's the APR on balance transfers? How long does that last? A lot of cards will offer a 0% APR for perhaps 12 months on balance transfers. Such a credit card is not particularly hard to find.
Adventures In The Real Estate Maze (13)
So we went to a loan provider to look up the various home loan deals. Then we went to another loan provider, and then to another and another. After going to all kinds of loan providers, we finally found one who would give us a great deal.
How To Find Credit Cards Without A Bank Account When You Have Less Than Perfect Credit (14)
These are also known as secured credit cards. This is a good card for people who need spending limits, such as teens, college students, or other people who may be financially irresponsible.
Why Is Umbrella Insurance Important (15)
If you have 5 million dollars worth of personal assets, you should get a 5 million dollar umbrella. It is not uncommon for someone to buy a 5 or 10 million dollar umbrella policy even if that number far exceeds their net worth, because the coverage is so cheap to buy.
8 Tips To Improve Your Forex Trading By 100% Now (16)
If you are new to trading or loosing consistently you must follow this rule, it will keep your trading account alive and growing. The higher the time frame the easier it is to make money, you can easily grow your account by 10-15% each month only taking 2-4 trades a month.
Hot Stock Picks For This Week (17)
It all starts with you - I took the time to help you, now please pass this around so others can benefit too. David Maillie holds numerous patents including his recently awarded patent for headlight cleaner and restorer.
7 Great Money Tips To Lead You To Financial Freedom (18)
Take the time to help by volunteering your time. Even if it is 1 hour a week, you will help improve someone else's life. Volunteer, it will make you a better person.
Great Tips On Lowering Auto Insurance Costs (19)
Pick a car with lower theft rates and lower premiums. A 4 door 4 cylinder car (Toyota Corolla) will almost always have a much lower premium than the latest 8 cylinder 2 seater sports car (Mustang GT (2+ 2 seating)).
U.S. Auto Manufacturers Are They Ready To Declare Bankruptcy? (20)
have a bustling truck business and it is their only profitable business. The imports have tried to break into this market and after quite a few years they have not had much success.
Permalink to Figures Offer Contrasting Pictures On Mortgage Lending