Monday, Dec 17, 2007
They really have lost the plot this time
Mortgagestrategy: Around 8% of mortgagors struggled with payments in 2007
Around 8% of mortgagors faced difficulty meeting repayments in 2007, a survey by the Bank of England has found.
The BoE says that fewer people struggled with mortgage payments in 2007 than back in 1991, when the figure was nearly twice as high.The survey also shows that those on fixed rate deals that had expired during the course of the past year were worst off, with 22% struggling to cope with repayments.Only 5% of those on continuing fixed rate deals faced difficulties, whilst 6% of those on variable rates had problems.
The justification of why it is “different this time” has to be a late April fools joke !
Posted by jack c @ 02:11 PM (358 views) Add Comment
4 Comments
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1. hpwatcher said...
Well, if it's only 8% why did they lower interest rates.....and why did they meet with other banks to inject 50bn into the liquidity system?
Not sure if it is possible to have this one both ways.....
2. it_is_going_with_a_bang said...
"And around a quarter of mortgagors owed more than three times their pre-tax annual household income in 2007, which was similar to 2005 and 2006 levels, but much higher than in 1995, when only 10% of mortgagors were in this position."
That pretty much says it all.
"It says the problems experienced by the minority of borrowers are unlikely to have much impact on the decisions of the Monetary Policy Committee."
Oh I wish !!!!
3. Letsalldance said...
hp watcher, are you saying it was a bent survey, or do you just find it hard to explain it?
4. Icarus said...
The BoE says that people have a "higher level of equity in their homes, which they can draw on if they get into difficulties". On this logic equity bubbles should never burst - because there's all that equity to fall back on. I'm sure that people holding tulip futures contracts in Holland in 1637 felt the same way.