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moonriver

"u.k. Home-loan Delinquencies Worse Than For (us) Subprime"

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http://www.bloomberg.com/apps/news?pid=new...id=aAHmQVHSAqBk

" May 20 (Bloomberg) -- Delinquencies on some U.K. non- conforming home loans exceed those by subprime borrowers in the U.S., and losses on the securities they back are accelerating, according to independent research firm CreditSights Inc.

Almost 30 percent of non-conforming mortgages made in Britain in 2005 are 90 or more days delinquent, compared with a rate of 27 percent on U.S. subprime loans made that year, analyst David Watts wrote in a report today. Non-conforming loans are similar to subprime in that they typically have low, or no, documentation requirements and may be made to borrowers with poor credit scores. .......

.....Unemployment in Britain, which rose by 244,000 to 2.2 million in the first quarter and may reach 3.1 million by the end of next year, has coincided with “a sharp rise” in delinquencies, according to the report. Bradford & Bingley Plc, the nationalized U.K. mortgage lender, said in March provisions for bad loans soared 23-fold in 2008 and forecast “further deterioration” this year and next. "

:o Surely this will not help the growth of those "green shoots" here ?

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This is a very big thing considering the situation America is in and the stories that have come out of their sub-prime industry. I don't think the brown stuff has really hit the fan here yet.

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http://www.bloomberg.com/apps/news?pid=new...id=aAHmQVHSAqBk

" May 20 (Bloomberg) -- Delinquencies on some U.K. non- conforming home loans exceed those by subprime borrowers in the U.S., and losses on the securities they back are accelerating, according to independent research firm CreditSights Inc.

Almost 30 percent of non-conforming mortgages made in Britain in 2005 are 90 or more days delinquent, compared with a rate of 27 percent on U.S. subprime loans made that year, analyst David Watts wrote in a report today. Non-conforming loans are similar to subprime in that they typically have low, or no, documentation requirements and may be made to borrowers with poor credit scores. .......

.....Unemployment in Britain, which rose by 244,000 to 2.2 million in the first quarter and may reach 3.1 million by the end of next year, has coincided with “a sharp rise” in delinquencies, according to the report. Bradford & Bingley Plc, the nationalized U.K. mortgage lender, said in March provisions for bad loans soared 23-fold in 2008 and forecast “further deterioration” this year and next. "

:o Surely this will not help the growth of those "green shoots" here ?

Looks like this will push house prices up :rolleyes:

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Why has troll no penus?

Strange spelling , is that how you spell yours Sadman?

In answer to Q:

I guess Hamish would say it is because it is a property buying troll and they are different in every way from the average population apparently.

Edited by Sybil13

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Agreed; it's the end of the crash as we know it. :lol::lol::lol:

Although seemingly (nulabour) have managed to convince the banks/building societies not to be so quick to repossess but for how long can this continue?

With the IMF warning that more UK banks may have to be nationalised, well sh*t, it's hardly surprising is it?

So, nationalise a few more banks; July and August see more bond auction failures; hike rates; exacerbating the delinquencies.

Vicious circle, where will it end?

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Although seemingly (nulabour) have managed to convince the banks/building societies not to be so quick to repossess but for how long can this continue?

Remember once they repossess they'd have to give the item a fair value in their books. As long as it's a mortgage, even in arrears, of £200k, the value is £200k. As soon as they admit they won't see a dime they then have an asset worth e.g. £160k if they can shift it, and a £200k loss to note in their books... Not repossessing is keeping them solvent...

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But that's a colossal risk, the reason people generally don't pay is because they can't pay and with unemployment set to rise, how much longer can it last?

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Playing Devil’s Advocate here - but it is only £30B - not a vast amount of cash in the grand scheme of things..........

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Playing Devil's Advocate here - but it is only £30B - not a vast amount of cash in the grand scheme of things..........

30bn of bonds, all leveraged probably 10 fold, all with CDS insurance.....these capital losses are much worse than the base figure would suggest.

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Playing Devil’s Advocate here - but it is only £30B - not a vast amount of cash in the grand scheme of things..........

Of course it's not a lot as the taxpayer can cover it. Why worry.

Even better the UK had no subprime so this is a non story to start with.

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Even better the UK had no subprime so this is a non story to start with.

Of course, I'm such a dullard.

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Agreed; it's the end of the crash as we know it. :lol::lol::lol:

Although seemingly (nulabour) have managed to convince the banks/building societies not to be so quick to repossess but for how long can this continue?

With the IMF warning that more UK banks may have to be nationalised, well sh*t, it's hardly surprising is it?

So, nationalise a few more banks; July and August see more bond auction failures; hike rates; exacerbating the delinquencies.

Vicious circle, where will it end?

Not sure it will.....see:

Why US prices will keep crashing

But hard to equate article above with this one today!

HPC Link today

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Gosh there appear to be no YOU HAVE CHOSEN TO IGNORE THIS POSTER messages on this thread.

What a bulls-are-loons surprise!

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No, no, no and no.

This is all just doomsaying and people trying to talk us into a crash.

Gordon Brown has said that he has ended boom and bust and that the UK has no subprime problem. I for one believe him and think that everybody needs to do their bit to pull together and help out poor, hardworking families through this difficult time that was all caused by those nasty Americans.

Everything is fine and if anybody says different then I'll come round to their house and throw a nokia at them.

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Remember once they repossess they'd have to give the item a fair value in their books. As long as it's a mortgage, even in arrears, of £200k, the value is £200k. As soon as they admit they won't see a dime they then have an asset worth e.g. £160k if they can shift it, and a £200k loss to note in their books... Not repossessing is keeping them solvent...

At least Americans have the luxury that is jingle mail - posting your house keys back to your mortgage provider to let them know you've financially f0cked up.

In the UK we have no such joy - we have to repay every filthy penny or go bankrupt.

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COMING HOME TO ROOST...[/size] :P:lol:

Dude, how must you feel, banging on for ages and lo and behold you weren't so loony after all....

2007 self-cert mortgages 50%+ of total wasn't it?

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Why US prices will keep crashing

But hard to equate article above with this one today!

HPC Link today

Interesting. That Moneyweek article today seems very puzzling, bearing in mind yesterday's UK default news, and what the other earlier Moneyweek article said.

But as Tulip points out, it is not Merryn or James Ferguson writing that Moneyweek article today. If it had been, I would of been very surprised.

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