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Many Mortgage Holders 'at Risk Of Repossessions This Summer'

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Many mortgage holders 'at risk of repossessions this summer'

A considerable number of people with high-risk sub-prime mortgages are at risk of repossessions this summer, according to Shelter.

The housing charity suggested that thousands of such loans taken out at the height of the UK's property boom are coming to the end of their fixed, low-rate period, the Mirror reports.

Figures cited by the publication reveal that approximately 166,000 households with sub-prime mortgages are struggling with their repayments.

In addition, a further 260,000 homeowners are concerned that they will be unable to meet future repayments on their home loans.

Commenting on the issue, Shelter's Sam Younger said: "It's vital the government includes the sub-prime sector in any financial help so those coming off fixed rates can access an affordable mortgage."

That is one heck of a lot of people who bought into the incredible poor, near criminal advice of the nations now disgraced property pundits.

However, it does mean that the crash in only just now getting started.

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Does anyone have any info about how accurate shelter have been with their numbers in the past?

I assume the 266,000 Shelter are talking about are borrowers coming to the end

of two year fixes who will go on to Standard Variables just as IRs start to rise.

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I assume the 266,000 Shelter are talking about are borrowers coming to the end

of two year fixes who will go on to Standard Variables just as IRs start to rise.

ooohhh the pain of it all , already in serious negative equity no one is going to want them so it's straight onto the lenders SVR , many with real sub prime lenders as well so it will be double bubble payments soon for these suckers ......

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Commenting on the issue, Shelter's Sam Younger said: "It's vital the government includes the sub-prime sector in any financial help so those coming off fixed rates can access an affordable mortgage."

AKA be subsidised by those who were responsible. Foooook off.

Tough, they took a gamble (may well have lied as our Eric says!) and have lost. Tough.

People were repo’d in the early 90’s why do folk have to be immune from it now?!?!?!

Ultimately though the government haven’t got the funds to help all these people. They will bring some proposal in which sounds like it will help when in fact it only applies to 0,5% of those effected.

Edited by Brave New World

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Commenting on the issue, Shelter's Sam Younger said: "It's vital the government includes the sub-prime sector in any financial help so those coming off fixed rates can access an affordable mortgage."

:lol::blink: Could that be the

LIAR LOAN SECTOR??!?

:rolleyes::rolleyes::P

:wacko::wacko::wacko:

Edited by eric pebble

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Many mortgage holders 'at risk of repossessions this summer'

That is one heck of a lot of people who bought into the incredible poor, near criminal advice of the nations now disgraced property pundits.

However, it does mean that the crash in only just now getting started.

So we're at about, what 40, 45K sales per month.

Sounds like we will have another 100K minimum coming to market by year end, maybe much more if IRs rise. I'm struggling for a phrase to describe this phenomenon of a lot more houses suddenly coming to market as distress sales. How about

PENT UP SUPPLY

:lol::lol:

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So we're at about, what 40, 45K sales per month.

Sounds like we will have another 100K minimum coming to market by year end, maybe much more if IRs rise. I'm struggling for a phrase to describe this phenomenon of a lot more houses suddenly coming to market as distress sales. How about

PENT UP SUPPLY

:lol::lol:

:P

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:P

I am seeing a lot of repo notices in windows all over Torbay, I also notice EAs are not using the classic shot of the loo or kitchen sink due to them looking like a taped off crime scene.

In the property section of the local paper there has been a sharp increase in notices of offers made ( acting for mortgagees). People are still relocating here, so, they are selling prior to auction.

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Many mortgage holders 'at risk of repossessions this summer'

That is one heck of a lot of people who bought into the incredible poor, near criminal advice of the nations now disgraced property pundits.

However, it does mean that the crash in only just now getting started.

This isn't really news is it? 1M+ predicted to be added to the unemployment bottom line so these numbers of people struggling is to be expected.

Life's not fair but people deal with it and they will continue to deal with it long after you and I are gone.

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Life's not fair but people deal with it and they will continue to deal with it long after you and I are gone.

...by you and me, via taxation, helping the poor souls out with their mortgages.

Like you said: life's not fair. :(

Nomadd

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a sub prime loan is by definition one that is likely more likely to fail.

the clue is in the name.

there is no such thing as a sub prime borrower. There are borrowers who cant meet commitments, there are borrowers who lose their jobs, their are borrowers whose partners have no job or become a mother and cant work, there are borrowers who get sick.

If the bank thought that these things were a risk, then they should have priced in the risk. Instead, what did they do? they lowered the criteria for all classes. and the FSA let them, the BoE let them, the Government let them.

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I am seeing a lot of repo notices in windows all over Torbay, I also notice EAs are not using the classic shot of the loo or kitchen sink due to them looking like a taped off crime scene.

In the property section of the local paper there has been a sharp increase in notices of offers made ( acting for mortgagees). People are still relocating here, so, they are selling prior to auction.

Interesting; was just 5 mins ago browsing property for sale in Torbay; first reaction, was just how many properties on Rightmove, seemed to be for sale above the £500K mark. Any more insights into the top end of the market down that way of the world?

http://www.rightmove.co.uk/property-for-sa...p;auction=false

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I think as far as sub prime lenders go there is not much worse than C&G. I know of a few basket case households on Liar loans with ridiculous sums outstanding on high LTV's at this moment in time saved by the very low SVR of 2.5%. Roll on inflation and the inevitable IR increase.

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I am seeing a lot of repo notices in windows all over Torbay, I also notice EAs are not using the classic shot of the loo or kitchen sink due to them looking like a taped off crime scene.

In the property section of the local paper there has been a sharp increase in notices of offers made ( acting for mortgagees). People are still relocating here, so, they are selling prior to auction.

What? They put repo notices in the houses? They don't do that in my part of the World.

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I would like to draw your attention to :

Linky

Government's £285m Mortgage Rescue Scheme helps just TWO families

Just two homeowners have been helped by a flagship initiative to save families from repossession, it emerged last night.

The Mortgage Rescue Scheme has been running since January, during which time nearly 20,000 homes are thought to have been seized.

Yet Margaret Beckett yesterday admitted that the £285million package had helped just two owners to hold on to their properties.

Defending the lifeboat scheme - announced amid fanfare last year - the housing minister said ten other families had been offered help and another 77 families were in line for assistance.

Critics said the figures were a scandalous failure caused by ministerial dithering.

The Department for Communities and Local Government said 4,202 struggling households had approached councils.

Of these, 593 applied for assistance under the rescue package which is designed to help the most vulnerable families.

But just two - both in the East of England - have been given the go-ahead for help.

Bob Neill, Tory local government spokesman, told the Commons that the Government's failure to help more people was 'tragic, if not scandalous'

Philip Davies, a Conservative backbencher, said the scheme was failing at a time when a house is repossessed every seven minutes.

He added: 'Is this not another example of the Government headline-seeking in a blaze of glory to try to pretend they are helping people, when they actually fail in reality to deliver any tangible help to people suffering hardship through no fault of their own.'

How the Daily Mail reported the story on December 4, 2008

Mrs Beckett admitted the number of households receiving help was small.

She added: 'It is a shattering blow to people to lose their homes - much worse than losing your job, much harder to recover from.

'We expect many more households to be helped in the coming months.

'Our objective is to ensure that repossession is always the last resort and this scheme is just one part of a comprehensive package of measures we've put in place to assist families at risk of losing their homes.'

The Mortgage Rescue Scheme is targeted at those earning less than £60,000 a year who would be entitled to be rehoused under homelessness legislation.

To qualify for assistance, a household must meet a string of criteria. These include the value of a person's home not exceeding the cap for their region.

For instance, in London it is £305,000, while in the North East it is £125,000.

And a family must show a clear need to stay in their home rather than move somewhere smaller or cheaper. A Government spokesman said many households had received financial advice under the scheme.

Hope you enjoyed the distraction of election and expenses row. The UK housing market, I predict is about to go into freefall.

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What? They put repo notices in the houses? They don't do that in my part of the World.

I've noticed them in Birmingham, along with fetching bright yellow padlocks and hasps on the front doors.

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Government's £285m Mortgage Rescue Scheme helps just TWO families

Hope you enjoyed the distraction of election and expenses row. The UK housing market, I predict is about to go into freefall.

Oh come on. That article's six days old. The chances are that figure's increased by 50% since then.

Percentages are so much fun, aren't they?

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