Monday, Apr 16, 2007
Don't fear the repo man!?
BBC News: Repossessions rise again in 2006
The number of properties repossessed by lenders has continued to rise sharply, up 9% in the second half of 2006.
Posted by nearly30 @ 10:32 AM (152 views) Add Comment
9 Comments
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1. george monsoon said...
I love the BBC for their "look how bad this is..." then follow it up straight away with "but it isn't really bad after all....." complete journalistic B@ll@cks..
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"It means that more properties - 17,000 - were repossessed in 2006 than in any year since 2000. "
Then straight in with.........
"Although the figures have nearly tripled in the past two years they are only 0.15% of all current home loans"
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2. nearly30 said...
Sorry - I know - just looked too tempting - especially as there was a posting about profits warnings yesterday - as per 2001.
If this is happening during the 'strong' phase of our economy - god knows what massive HPI, IR rises and profits warnings will do to the repo figures for 2007.
3. Sam said...
I can see myself not posting on the site by the end of the year. - after the crash; what's the point?
4. mrmickey said...
I've heard of people changing their repayment mortgage to interest only, this could be the way a lot of people are keeping their heads above water.
5. george monsoon said...
Yep.. as always cheap money and lax lending is keeping everyone afloat. This has gone on so long that the general pubic have become complacent about having debt. God help us all when the tide turns... and it looks increasingly likely that it has begun.
6. Scott said...
George is right. The sun cannot shine forever.
7. confused76 said...
mrmickey is right, a very large number of borrowers are resorting to "interest only" and other ways (e.g. MEW to pay soaring interests) to keep solvent. Today's repossessions are just the tip of the iceberg since people is still shielded by equity that they have built over the past years, but once that is gone and interest keep rising, homeowners will realize that they have overpaid for assets and lined the pockets of the lenders with their interest payments. What an exciting crash lies ahead!!
8. royston said...
British banks & building societies are feverishly "re-structuring" loans of those who get into trouble, to keep from having to repossess. They know only too well what flooding the market with repossessions would do to the value of their collateral. Nowadays, there are also nasty clauses in the mortgage bonds that they sold to pension funds that require the banks & building societies to buy the bonds back if the default rate rises too much.
I am convinced that the property market is going to go pop very soon, but I am starting to think the collapse could take half our banking system with it. That is worrying! The longer the boom goes on, the greater the danger to the banking system.
9. Fahrenheit451 said...
It's all going to end in tears.
I'm going to start saving for a deposit ...
Er ... £2.50 per month for 1000 months and I'll be there ... someday or other.