Sunday, Oct 28, 2007
yuk - subprime
FT: Debt advisers warn of sharp rise in repossessions
John Charcol warns of increases in repros next year - hardly news or a unique spin. But interesting none the less
"The subprime mortgage market is not as big as in the US nor is the lending considered as high-risk or irresponsible. UK subprime lending is thought to account for around 9 per cent of the total mortgage market, with "heavy adverse" - borrowers who have multiple court judgments or are recovering from bankruptcy - making up around 20 per cent.
Nor has subprime lending in the UK been as aggressive as in the US. However, it has been cheap - most mortgage brokers say too cheap. Borrowers have therefore been able to obtain larger mortgages than they perhaps should have done, which have become unaffordable as rates have risen."
Posted by techieman @ 10:19 AM (335 views) Add Comment
1 Comment
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1. inbreda said...
"The subprime mortgage market is not as big as in the US nor is the lending considered as high-risk or irresponsible."
So what he's saying is that the lending HAS been irresponsible. But it could have been more irresponsible.
Well - that's OK then.