An article from over a year ago. Even then the game was over.
"Will 'liar loans' destroy housing market?
29 April 2007
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Sub-prime mortgage lenders are fuelling a steep rise in court actions by seeking repossessions, in a frightening echo of the crisis in America's housing market.
Analysis of county court hearings by Citizens Advice has found that sub-prime mortgage lenders - who lend to borrowers with less than perfect credit histories - account for 70% of the rise in repossession hearings between 2005 and 2006. The research was based at the busy county court of Kingston, Surrey.
Overall, arrears and repossessions are rising fast and approaching double their 2004 levels. But the bigger role played by the risky subprime sector - never stripped out of total data until now - is worrying, say experts, because problems in this market tend to foreshadow an emerging crisis.
In the US, huge sub-prime defaults have destabilised the housing market and sent shockwaves through the banking sector. Aggressive lending and inadequate income checking led to subprime mortgages being called 'liar loans'.
Here, lenders insist subprime standards are higher.
But Adam Sampson, boss of housing charity Shelter, said: 'There is evidence in the subprime sector that some lending is unsustainable and irresponsible."