Sunday, Oct 07, 2007
So there's no subprime in the UK, huh?
BBC News: Sub-prime borrowers face repossession
A BBC investigation has found sub-prime mortgage lenders who give loans to people with bad credit records account for more than 70% of all repossessions.
On Breakfast news they added that "subprime" accounts for 8% of the UK mortgage market. Wasn't it just a couple of months ago that we had no subprime in the UK? It would be very interesting to know how they're defining what is subprime and what isn't.
Posted by paulos @ 08:33 AM (1109 views) Add Comment
15 Comments
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1. japanese uncle said...
Those who declared that subprime issue does not exist in the UK just a couple of months ago, must be named and shamed and struck out from any media as they proved themselves to be professional liars.
2. autopilotengage said...
There was a story a few months ago regarding potential changes to the borrowing rules for local councils so more council houses could be built. Council houses should be provided as temporary help in most cases in my opinion. Where appropriate, it should be discussed with tenants what their plans are to secure their own accomodation to free up these safety net properties for others who find themselves to need them through being victims of circumstance . Allowing people to malinger long enough to be given the right to buy at an enormous discount really does send the wrong message. How long before any new council houses are plundered for the short term gain of the current party in office?
3. harold said...
"The bank says it follows industry rules regarding responsible lending and took into account the income of the daughter of the Bradburys when granting the mortgage - although she too is on benefits."
...although she too is on benefits!!!
The jaw-dropping corruption underpinning this practice is astonishing.
If you want to know why the Bradburys were really given a lone that the Bank KNEW they would not be able to repay, look no further than the link below. It's time we stopped treating Banks as neutral/incompetent operators in this, but as malevolent parasites that need to be abolished and reformed. Forget Labour and the Tories, anyone fancy joining the 'Honest Money Party'?
http://www.youtube.com/watch?v=cy-fD78zyvI
4. confused76 said...
"On benefits, with mortgage"
ah ah ah ah aha h
aha hahah ah ah ah aha ha ha hh aha ha h
there is no subprime here!! nooooooooooooooooooooooooooooooooooooooooooooooo.....
5. uncle chris said...
"The market for high interest sub-prime mortgages now accounts for about 8% of the total UK mortgage market, but a BBC survey has found that they make up over 70% of all repossession cases."
Says it all really - I wonder how long before the big pension funds start litigation against the intermediaries who packaged up (aka disguised) and sold on these dud mortgages to them. How many pensions are going to suffer as a result. When will people realise that they shouldn't trust their pensions to city organisations who cream off billions in bonuses, make reckless investment decisions and in many cases, give poorer returns than stashing your pensions in a savings account.
6. Drewster said...
The subprime figure given for the UK is just 8%, yet in America the subprime levels were 33%-50% depending on whose figures you believe. So in terms of actual subprime, we have less here than in America.
I think the real trouble in both the UK and the USA is "flipping" and buy-to-let, i.e. people buying multiple properties on the assumption that prices will rise forever. Buy-to-let is the UK's subprime. That should increase the 8% figure!
7. sirgoogle said...
Watch Panorama on Monday - it is all about sub-Prime UK
8. enuii said...
Harold, excellent short film, the miracle of modern banking, the illusion of wealth and its exploitation.
9. enuii said...
The next part is even more stimulating No Debt = No Money.
Watch this and think of where we are headed -
http://www.youtube.com/watch?v=_yvRZoM-2r8&NR=1
10. harold said...
enuii, there are five parts to the movie - I'd recommend all of them.
11. David Smith's Sub Prime. . . said...
I declare that there is no Sub Prime.
Love David Smith (aged 13 and a quarter)..
12. Jolo said...
It's not just people with bad credit records, I bet there's more vunerable young people out there who (on illegal advice) got there boss'es to lie about their wages. who knows how many people out there have done that.
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