Friday, 4 May 2007
UK Mortgage approvals fall
I missed this data when it came out about a week ago. The British Bankers' Association reported on Monday mortgage approvals fell 12 percent in March from a year earlier. Moreover, it is a fourth consecutive month that approvals have fallen.It is one more sign that the UK’s bloated, overvalued, unsustainable, unobtainable, unreasonable, incomprehensible, and inexcusable housing market is about to do the right thing – crash.
And what of falling off it will be. Buy-to-let speculators will be ruined, estate agents will be impoverished, and reckless mortgage lenders will be bankrupted. How far down will it go? Personally, a 20 percent fall in prices would seem a conservative estimate.
Remember negative equity? It is about to rise from the grave. If you took out a mortgage in the last three years, you will be upside-down for years to come, owing more than you own.
As for that happy band of renters, I suggest that you sit back, relax, and enjoy the show.