Tuesday, Feb 10, 2009
Rock & Dole
FT: Northern Rock sees 21 per cent rise in repossession losses
Northern Rock has seen a 21 per cent increase in losses incurred in relation to repossessed homes, as the number of people defaulting on their mortgage begins to increase.
The data, from its Granite securitisation vehicle which was set up by the bank to raise money from investors, showed that the government owned bank suffered losses of £8.65m in December as a result of repossessing homes from those who had defaulted on their mortgages. This compares with losses of £6.82m the month
Posted by jack c @ 04:21 PM (426 views) Add Comment
2 Comments
- 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. str 2007 said...
''The data also showed that the average loan size per customer was £109,299, with the average loan-to-value (LTV) at 77 per cent.''
This sentence throws a little light on the discussion we had yesterday about Northern Rocks average loss of £19.5k per repossessed property.
I find it hard to believe that the average LTV of repossessed properties is 77% LTV. However if it were it indicates the (taking the average) that the property value is 109299/77*100=£141946 and assuming they make a £19.5k loss on each then they are selling them for about 90k each. About 36.5% off peak (assuming the 141946 was the average peak value of Northern Rock customers properties).
I can only assume they'll try and get the remaining people who are struggling with their average £109k loan onto an interest only deal that they ought to be able to afford, to stem the flow of repossessions.
The headline will then read Reposession Numbers Fall Dramatically at Northern Rock as Economy Strengthens and Housing Market Recovers.
You wait and see.
2. hpwatcher said...
In the words of confused76, who is sorley missed:-
MMURURURURURHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAH