Saturday, Dec 08, 2007
Top story on FT website -- doesn't get much more bearish than that
Financial Times: UK owners may be forced to sell homes
Homeowners may be forced to sell next year and join the ranks of renters when lenders tighten terms for borrowers with poor credit histories, the Council of Mortgage Lenders warned yesterday.
... Separately, it emerged yesterday that one of the first intermediaries in the riskier end of the mortgage market was this week forced to call in administrators. The Mortgage Lender, a Hampshire-based mortgage broker, provides mortgages to the subprime end of the market, as well as to upmarket borrowers.
Posted by richc @ 08:58 AM (495 views) Add Comment
9 Comments
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1. confused76 said...
Great post! "Michael Coogan, director-general, urged the government to pledge more money to help those in danger of falling off the housing ladder"... ok, fine. I am sure the government will waste taxpayers' money to help people facing repossessions. but if this alarm bell goes off the market is totally dead in the water. who would want to buy at inflated prices if people need subsidies to retain their homes... you gotta be kidding!!!
2. japanese uncle said...
And not a few will be forced to do moonlight flit like the "canoeist".
3. David Smith's Sub Prime. . . said...
Nonsense!
The housing market is underpinned by strong fundamentals like immigration, more single people, less land...
Mr. Murdoch told me that. I think I might write an 'essay' on it. I might pass my GCSE this time... Perhaps I will get an A star star star star star for it. All my own work.
Love David Smith aged 13 and a quarter...
4. Davros said...
Join the ranks of renters! The horror!
5. handle_it said...
Actually the government can do something to help people struggling to keep up with increased mortgage payments. They should encourage them to face the reality of the market. Perhaps a course on how manage their finances and that owning a home isn't as important as some might lead you believe. Oh while they're there they might tell them that our reason for being on this lump of rock isn't just about accumulating material wealth, they could even tell them that money is for the post part just a bit of fun for the banks and that real values like honesty and compassion for your fellow man are quite nice things if you'd only try them. Also the Government could build some affordable housing that isn't just for so called "essential" people then these so called "subprime" could live within their means without working every hour god sends,raise well balanced educated children that don't think drugs and guns are their only hope.
6. mrmickey said...
So we have record employment in this country and people still can't pay their mortgages, what happens when unemployment starts rising? it's going to be armageddon. The amount of pain felt by the general public will force the government in to some sort of cack handed bail out which will destroy the economic credability of this country even further, nobody will want to invest in Cool Britannia after that.
7. Matt_the_hat said...
we need to act fast. A team of solicitors to launch a pre-emptive strike against the government so it can't step in and distort free markets (housing market). No handouts to the stupid and careless, we the financial savvy need to act now and fire a warning shot before its too late (US government example)...
8. techieman said...
If this is true this would be absolutely outrageous. Its saying its acceptable to use a house as a casino chip BUT if your number doesnt come up the croupier just says oh well dont worry have another go. So by (me) being prudent (oh sorry Gordon has a monopoly on that word doesnt he?) and not borrowing at 10 X my salary i get penalised by my taxes being used to bail out someone who has? The very thought of this makes me sick - the thing is i actually think it MIGHT happen!
9. wiltshire said...
True, it might happen. But if it does the government have to bear in mind there are plenty of prudent people in this country who won't accept being penalised for living within their means.
Liebour will be between a rock and a hard place over who to alienate, the financially prudent or the wasteful and debt-ridden.
UNLESS something happens which unites everyone against a common enemy and can be used as a smokescreen for ecomonic malaise - something like a massive terrorist attack? Who knows but the stakes are very very VERY high now....................