Sunday, Sep 23, 2007
The Repo Man cometh
Guardian Money: Repossessions could soar in UK
Home repossessions could rocket by the end of the year as lenders of sub-prime mortgages push up their interest rates and clamp down on easy credit terms.
Posted by garyb @ 09:39 PM (973 views) Add Comment
9 Comments
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1. enuii said...
Repossessions are soaring, the figures say so already and they around 6 months behind first defaulted payment.
If you check this article from the end of August http://ukpress.google.com/article/ALeqM5jwCoEeRMqWV4SrjRP2Mj1OMUTBWA youwill see that:-
A total of 5,120 homes went under the hammer during the second quarter of the year, 22% more than during the previous three months, (Royal Institution of Chartered Surveyors figures) and RICS is predicting that more than 45,000 homes could be taken back by mortgage lenders during 2008, the equivalent of 124 a day.
If you look at the numbers 2008 looks like it will see over a 100% increase in repossessions
2. david20040_0 said...
But with interest rates dropping next month supposedly this will make more mortgages affordable and then the number of repossessions will drop.
3. enuii said...
The B of E may drop interest rates but the Mortgage Lenders are not guaranteed follow suit in order cover the increased risks associated with some of their products. All of a sudden self-certs and negative equity loans especially will look extremely dodgy especially on a potentially falling market with regard to house prices.
4. confused76 said...
BoE base rate may drop, mortgage interest rates will not. David, I told you thousand times, risk is being right-priced. The past couple of years have been an aberration
5. tyrellcorporation said...
Why are people talking about falling IRs? I see no evidence that the BoE will drop rates - the risks to inflation remain and high street spending is still pretty solid.
6. paul said...
The BofE will not drop rates this year.
7. planning4acrash said...
It would be convenient for Gordon Brown, he may pressurise BOE into it, and for sure, David Branch Flower Power will vote for a cut and maybe convince some others.
8. N said...
Any firm suggestions that the base rate will drop will force the £ to fall, thus importing inflation, thus forcing the BOE to stay put with regard to rates. The main reason why CPI has sunk recently is due to the relative strength of the £ as compared to 6 months ago.
9. C'mon Correction said...
Indeed, inflation (CPI) will be 3% within 6 months, we're still looking at a rate rise next not a fall. Remember predictions that rates wouldn't go above 5% only little over a year ago... We have a MASSIVE pent-up inflation both here, Euro and US - it ain't gonna magically disappear even with figure massaging. End of 2007 we'll be heading to 7% interest rates - either that or we'll had a HPC/ recession start by then.