Thursday, Dec 13, 2007

Stunning opinion from Citizens Advice

Firstrung: Home ownership dream shattered by irresponsible sub prime mortgage lenders - CAB

The dream of home ownership has turned sour for many people on low incomes who have taken out mortgages or secured loans with sub-prime lenders only to end up deep in debt and facing the prospect of homelessness, according to a report from Citizens Advice..."The stark message of our report is that for many low income homeowners the risks have ultimately outweighed the benefits. Better protection must be put in place urgently if the dream of home ownership is not to turn into a nightmare of debt and homelessness for thousands more vulnerable people." - CAB

Posted by converted lurker @ 03:31 PM (307 views) Add Comment

2 Comments

1. alan said...

The CML have bitten back. They defended sub-prime mortgages. Sky article (for example) refers:

http://news.sky.com/skynews/article/0,,30400-1286024,00.html

My debt advice colleagues are siding with the CAB.

Make your own mind up.....

Thursday, December 13, 2007 04:39PM Report Comment
 

2. handle_it said...

It's hard not to agree that people have been lent money that shouldn't have been. The key here is that these sub primes weren't borrowing against a depreciating asset. All the rules were being broken because they knew if things went tits-up, the property would have increased in value and could be repossessed. To me, the terms of how the subsequent loan was sliced, diced and sold on is another issue alltogether. From the lenders point of view, at that point in time, I can't possibly see how they can be blamed for trying to make money, seems a no-brainer to me.

Thursday, December 13, 2007 05:27PM Report Comment
 

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