Keith McLaughlin: Centrix Managing Director on lending data increasing year-on-year

Positive signs about our economic recovery in the latest lending data. 

New figures from credit bureau service Centrix shows a rise in lending, including a 21% rise in residential lending. 

Three thousand fewer people are behind on payments compared to a month earlier. 

Centrix Managing Director Keith McLaughlin told Mike Hosking it shows that households are continuing to manage their budgets effectively. 

He says the trend is very, very favourable.  

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Episode Transcript

Speaker 1 (00:00):
Well, it's only Tuesday. The housing market getting good press
already yesterday. Some decent price numbers are today. New data
on mortgage lending up twenty one percent a year on year.
Credit demand has risen over five percent, arrears of falling
a business, credit demands up three and a half percent.
Hospit leading the way there. Keith McLoughlin, Centric's managing director.

Speaker 2 (00:15):
Keith Morning, Good morning, mikey.

Speaker 1 (00:18):
Are we in summer? Are there shoots all around us?
Is the light at the end of the tunnel? Have
we arrived on the promised land?

Speaker 2 (00:24):
Keith, Well, Sidney, The trend is very, very favorable, Mike.
I think the fact that consumer confidence is rising. That's
evidence by the fact that consumers are confident now to
go out and buy our money to buy goods. We've
seen a growing trend as far as that's concerned. And
also the fact that consumer areas are falling away. I
think as a sign that households continue to manage their

(00:47):
budgets for very effectively.

Speaker 1 (00:49):
Some people text me every time these numbers come out
and go credit demand is not good. That's a sign
that people aren't coping and they need more money. Is
that true or not?

Speaker 2 (00:56):
No, I don't think it is. It's a sign that
people have confidence. I mean, key is generally don't borrow
money or buy things unless they know they can afford
to repay it. Q is a pretty genuine as far
as it's concerned. And the fact that they can now
go out and put money down on a house or
or buy household items with the confidence they are going
to retain their job and have the ability to repay it,
that certainly stimulates the economy, and small to medium sized

(01:20):
businesses certainly need their stimulation at the moment they do.

Speaker 1 (01:22):
Indeed, what do you make I mean, I don't know
if you've got a view, but the numbers, the confidence
numbers that came out last Friday were still doer. And
yet when you look at the facts where something different.
How do you explain that?

Speaker 2 (01:35):
Well, I think when you look at the consumer market,
I think for a period of time now that's been
trending upwards and looking quite confident. The real concern that
that I think is out there at the moment is
small to medium sized businesses and the number of liquidations
that are out there at the moment. I mean, unfortunately
it's not that high, but it certainly is trending high,
and I think it's going to continue for some time.
And it's that uncertainty around the business sector that creates

(01:58):
the concern.

Speaker 1 (01:59):
Have we got competition among the banks? Are they keen
to get money out there if we're keen to borrow it?

Speaker 2 (02:04):
Oh? Yes, I believe so. I think the thanks you know,
they're fighting for market share and they don't know there's
a lot of love loss between them as far as
competition is concerned.

Speaker 1 (02:13):
Yeah, Are the first home buyers active? As that mortgage
money going to, you know, first home buyers.

Speaker 2 (02:18):
It's a combination of both first time buyers and also
refinancing a bit irrespective of which one of those two
it is. I mean first home buyers, yes, good to
see it and get in and get reasonable rates for
their mortgages. But even people moving from one leander to another,
this means that are coming in at lower rates than
there were previously, which puts more money back into their
budgets and therefore, hopefully they'll spend it in the local market.

Speaker 1 (02:41):
On a vibe thing, Here's where I'm at. I think
this is real. I think it's turned, it's on, and
I think next year it could go quite quickly in
a positive direction. Would you disagree with.

Speaker 2 (02:51):
Me vehemently No, I would not disagree with you. I
think well, were the numbers that we're in through at
the moment. The numbers we're seeing certain support the fact
that we are Sidney strongly training in the right direction.

Speaker 1 (03:02):
Good stuff, Keith, Always a pleasure to have you on
the program. Keith McLoughlin's Inrix, Managing Directed. For more from
the My Asking Breakfast, listen live to news talks It't
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