Tuesday, Apr 24, 2007
More coverage of the recent FSA warning
moneyextra: House prices to dip 20%?
Mortgage lenders should allow for at least a 20% fall in house prices. That's the stark message being given by Clive Briault, Managing Director, Retail Markets, at City regulator, the FSA (Financial Services Authority).
In a recent speech before the Council of Mortgage Lenders Briault said that when lenders are calculating their Loss Given Defaults on mortgage portfolios they should allow for a 20% reduction in house prices, and a further 20% reduction from forced sale after a property has been repossessed. In addition, they should allow for 35% of loans in default to end up in repossession.
Posted by cash_buyer @ 01:05 PM (136 views) Add Comment
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