Tuesday, May 27, 2008
Prime borrowers able to refinance are doing so in droves
FT: Recent borrowers hit problems earlier
Sean Hannigan, a director and credit analyst at S&P, said the terms of subprime loans, including those with relatively low upfront rates, are typically so punitive that even if borrowers need to pay a penalty, it is worth their while to refinance as soon as possible.
The slowing of prepayment rates may also suggest that sharp house price inflation, which improved the position of earlier borrowers with poor credit, is no longer helping recent borrowers.
In addition, the data suggest more recent borrowers are running into financing difficulties earlier in their mortgages.
Posted by malct @ 10:38 AM (225 views) Add Comment
1 Comment
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. crash bandicoot said...
Who would have thought it? Charging folks with a poor credit history a premium to borrow a shed load of money increases the chances of a default on the repayments. Is this an unforseeable circumstance?