Mortgage approvals a third up on a year ago, say banks

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We are not sure when this rising tendency will flatten, which it has to, while the above statement was published in the in the Estate Agent Today on Wednesday 24th July 2013, literally hot off the press: House purchase mortgage approvals by high street banks during June were 37,278 – up from 36,290 in May and that is sobering, at least it was lower than the 38,300 which the success drunk analysts did forecast, but can you believe, still 33% higher than during May last year. All estate agents in London must work and save while the pickings are as rich as in the present.

Also read: Interest-only mortgage holders have nothing to fear

NOT ONLY THE BRITISH BANKERS ASSOCIATION FLOAT ON CLOUD NINE

The BBA said the average approval value for house purchase had also increased to £160,100, up from £153,000 a year ago, which remains part of this Catch 22, artificially created, non-stop merry-go-round of easier mortgages, creating higher demands, forcing prices up, again supported by crazy easy mortgages and on and on - - - till the bubble bursts.

At least re-mortgaging approvals have decreased in the previous month, slightly down from 20,670 in May to 20,478 in June. As if the 33% increase of mortgages for May was not already a heart stopper, Haart estate agents in London declared that first time buyers are up 68% for June compared with June 2012, how DO you comprehend that?

PROPERTY MARKET GOES MENTAL TOO, AS RESULT OF 'MAD' HELP TO BUY SCHEME

This last has been a hectic London property agents' news week, another report published yesterday declares that crucial details are still missing from the next stage of this 'mad' Help-to-buy' scheme. Some prominent financial minds support our critical stand on the desirability and long term viability of this Buyers-Carousel, the Institute of Directors was who labelled it “mad”, with chief economist Graeme Leach saying: “The housing market needs help to supply, not help to buy.” Three hurrays to Mr Leach, Hurray, hurray, - - -

THE “MADNESS” IS FURTHER UNDERSCORED BY DIFFERENT ROLE PLAYERS

The home office allianceThe Home Owners Alliance said the Scheme would apply cover cosmetics, “papering over the cracks” in the UK’s housing crisis and said the real problem was the shortage of homes, which will only worsen with time, a fact with which Nelsons Estate Agents London fully agree.

CEO Paula Higgins said it was vital the madness of the scheme was short-lived. She said: “If Help to Buy goes on and on, the housing market could come to rely on government guarantees – which is the situation the US is so desperately trying to escape from at the moment. Why follow suit?

The scheme was labelled as “moronic” by one critic – offering first-time buyers and other purchasers of both new and second hand stock worth up to £600,000 access to 95% mortgages.

THE DO HAVES WILL PAY FOR THE DON'T HAVES TO BECOME ALSO HAVES

Taxpayers provide a mortgage guarantee, to reduce lenders’ risks and encourage them to join the scheme. During yesterday’s (24 June) meeting at Downing Street to discuss progress, convened by chancellor George Osborne and attended by a number of mortgage lenders, house builders and others in the market, key questions were left unanswered (what's new?) including capital relief for lenders, how much it will cost them to participate in the scheme, their reporting requirements and the exit plan after the scheme’s planned three-year shelf life.

Osborne, however, denied that the scheme was still short on detail, saying: “I’m determined to back people who want to do their best for their families. Help to Buy is about getting behind those who aspire to own a home. “The mortgage guarantee will support an increase in high loan-to-value mortgages for people who can’t afford large deposits, and it will also boost house building. (Ha Ha, of course) “As of today, lenders have the detail they need to go away and get ready for next January’s launch.” “Attention Mr Osborne, why has ownership for everyone become the alpha and omega?

From beginning of time some owned property and others rented, why not now?”