Mortgage approvals up but net lending down
Again we are seeing very different signals from the UK property market with the Bank of England today confirming that mortgage approvals were up in May but net mortgage lending was down by over 30%. This seems to be the general format of the UK property market with each report bringing positive aspects and negative aspects at same time. More and more investors and homeowners are becoming totally confused as to the real direction of the sector although this will in time become more evident.
May saw an increase in mortgage approvals to just over 43,000, which bodes well against the average over the last six months of just under 36,000, a figure which is the highest monthly rise for 13 months. This is the fourth consecutive month during which mortgage approval numbers have increased although when you set this against the fact that net lending fell from £1.1 billion to £600 million in May it is easy to see why investors and homeowners are concerned.
It seems as though the UK property market has had more than enough opportunities to improve and move on from the current situation but something appears to be holding it back. Many people believe, as we have suggested before, that the market will not improve dramatically until mortgage liquidity improves and the current constraints in the marketplace are removed.
Share this..
Related stories
Interest rates expected to fall later this week
A quick look at the currency markets will confirm the worst fears of savers in the UK, with interest rates set to fall later this week. The currency markets are already factoring in a fall of up to 1% although there is some speculation we may see a 1.5% cut. This should be relatively good news for the UK economy and the mortgage market although there is some doubt as to whether the savings will be...
Read MoreGeorge Osborne receives unexpected backing
In a surprising development, George Osborne, the Chancellor of the Exchequer, has today received the backing of 35 of the U.K.'s largest companies with regards to his spending cut plans. Bosses from companies such as Marks & Spencer, BT and GlaxoSmithKline are amongst a host of companies who have written an open letter to the Daily Telegraph pleading for George Osborne not to water down his spendi...
Read MoreCredit card surfers may be in luck
Historically every time you apply for a loan or credit card in the UK this will leave what is known as the "footprint" on your credit reference and could ultimately impact upon your ability to gain finance in the future. Over the last few years we've seen a number of so-called credit card "surfers" flitting from card to card accepting offers and reduce packages along the way. However, many of thes...
Read MoreBank account providers criticised by OFT
Banks are not being transparent enough about interest rates and penalty charges for their current accounts, an Office of Fair Trading (OFT) investigation has found.According to the new report, which was released today, UK banks raise more than 80 per cent of their £8 billion per year revenue through interest and penalty fees.Of this total, £2.6 billion comes from the charges, while a further £4...
Read MoreShort-term planning for a long-term future
Many people in the UK have long-term savings plans in place which include pensions, bonds and other such savings tools. The majority of these are long-term investments which will guarantee a relatively stable standard of living in the future and are seen by many as their "nest egg". However, a number of people appear to be avoiding short-term issues and continuing to plan for the longer term when...
Read More