Surely I am not the only landlord worried about new EPC requirements?9:44 AM, 17th February 2021
About A week ago 125
Bank mortgage lending slumped to the lowest for more than a decade during December as the housing market stalled.
New lending dropped to £880 million for the month, the lowest level since June 1999, according to figures from the British Bankers’ Association.
Only 28,726 mortgages were approved for buying a home in December, which is a return to the level of January 2009.
The year’s mortgage lending by banks was slightly up on 2009 – by 2.8%.
Despite the 44% slide in new business, the BBA is quick to point out that banks are still more active than building societies and specialist lenders.
David Dooks, BBA director of statistics, said: “The main banks’ net lending rose by £20 billion in 2010, in contrast to lending by all other lenders, which decreased by around £12 billion.
Average bank mortgage is 80% of property value
“However, mortgage demand was weak throughout the year, with 10% fewer loans approved than in 2009.”
The average home purchase loan in December was £143,300, with several house price surveys putting the average cost of a home at about £165,000, which makes the average loan-to-value for a bank mortgage about 80% -85% of a property’s value.
The figures come after the Council of Mortgage Lenders – which speaks for all lenders, not just the banks – said total mortgage advances in 2010 slipped to their lowest level for a decade to £136.3 billion.
The figures do not help the bank’s current war of words with Chancellor George Osborne, who is pressing them to increase lending by another £10 billion to homeowners and businesses this year.
He has urged the state-owned banks Lloyds – that includes the Halifax and Bank of Scotland – and Royal Bank of Scotland – which owns NatWest – to comply or the government will order them to sell-off parts of their businesses.
This big questions in the industry right now are:-
1) Will property values recover when peoples ability to secure new mortgages is restored?
2) When will the mortgage market recover?
I’ve shared my views in recent articles, what are yours?
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agentsLearn More