ChairmanOfTheBored, on 22 March 2012 - 05:39 PM, said:
Is there going to come a point when lenders are going to start pressing the auto-destruct button on these IO's by reviewing files, looking for proof of income in the hope of forcing sales as an attempt to limit the lenders losses? Has anyone seen any sign of it?
Not seen any signs of it, and I'm down the coalmine with the canary.
Lenders are using a lot of discretion on individual accounts + pressing the auto-destruct button is probably not part of their thinking because their balance sheets are really fewked and a true crash in prices would simply wipe them out, regardless of what the BoE and gubmint does.
The tightening up on IOs and SVRs will be managed so as to elicit the least hissing while the feathers are being plucked. Like taxation.
That's my opinion, but if I see a change in policy I'll rush to the keyboard and tell HPC all about it!
edit: to add a prediction - next move will be rejection of debt management plans for unsecured debt: this will affect many mortgagors, so I expect more hissing.
This post has been edited by okaycuckoo: 22 March 2012 - 07:37 PM