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Realistbear

'repossessions Are Likely To Soar In The Next Two Years

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http://www.telegraph.co.uk/finance/persona...cue-Scheme.html

Just six families helped by government Mortgage Rescue Scheme

Britain is facing a reposession timebomb, Vince Cable warned yesterday, as it emerged just six families have been helped by the Government's Mortgage Rescue Scheme.

By Myra Butterworth, Personal Finance Correspondent

Published: 7:00AM BST 01 Jul 2009

Vince Cable - Just six families helped by government Mortgage Rescue Scheme

Vince Cable: 'Repossessions are likely to soar in the next two years because of rising unemployment' Photo: Heathcliff O'Malley

The scheme, which cost more than £280 million to put in place, was launched at the beginning of this year, with the Government saying it would reach its 6,000 target within two years.

But increasing numbers of households are struggling to meet their monthly mortgage payments and face losing their homes amid the recession...../

Rising unemployment is a 100% guarantee that house prices have only just begun to collapse back to sustainable levels (2.5 time income).

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http://www.telegraph.co.uk/finance/persona...cue-Scheme.html

Just six families helped by government Mortgage Rescue Scheme

Britain is facing a reposession timebomb, Vince Cable warned yesterday, as it emerged just six families have been helped by the Government's Mortgage Rescue Scheme.

By Myra Butterworth, Personal Finance Correspondent

Published: 7:00AM BST 01 Jul 2009

Vince Cable - Just six families helped by government Mortgage Rescue Scheme

Vince Cable: 'Repossessions are likely to soar in the next two years because of rising unemployment' Photo: Heathcliff O'Malley

The scheme, which cost more than £280 million to put in place, was launched at the beginning of this year, with the Government saying it would reach its 6,000 target within two years.

But increasing numbers of households are struggling to meet their monthly mortgage payments and face losing their homes amid the recession...../

Rising unemployment is a 100% guarantee that house prices have only just begun to collapse back to sustainable levels (2.5 time income).

ah but think of all the public servants who got high salaries out of the £280million pot - that's the main thing, jobs for labour voters.

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Ive just posted on Dr. Bubbs "whimp" thread to say that Ive been listening to predictions of a tsunami of repos for 18 months or more, but ive yet to see anything of interest in auctions in Bristol.

People (including myself ) were pretty certain that BTL would be an early casualty producing many repo's, bit of a damp squib though so far if you ask me.

Maggs and Allen is our principal aucton house in Bristol, very little by way of repo's reaching its catalogue.

Maybe its different in other parts of the country but there is not a lot of evidence of repo to auction activity around these parts at all.

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Unemployment is the mother of all lagging indicators. Once people begin to lose jobs they begin to shed houses and when houses are shed in large numbers values follow the traditional pattern. Brown's attempt to avoid recession (HPC) has bought a few months postponement but the real damage is yet to come.

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Ive just posted on Dr. Bubbs "whimp" thread to say that Ive been listening to predictions of a tsunami of repos for 18 months or more, but ive yet to see anything of interest in auctions in Bristol.

People (including myself ) were pretty certain that BTL would be an early casualty producing many repo's, bit of a damp squib though so far if you ask me.

Maggs and Allen is our principal aucton house in Bristol, very little by way of repo's reaching its catalogue.

Maybe its different in other parts of the country but there is not a lot of evidence of repo to auction activity around these parts at all.

Many are still hanging on believing all the green shoot bullsh1t that the media have been spouting these last few months , government schemes , low interest rates and mortgage interest being paid is all adding to the dragging out of this , repo's can only go north from here .....it's a certainty imo .

Edited by grey shark

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Ive just posted on Dr. Bubbs "whimp" thread to say that Ive been listening to predictions of a tsunami of repos for 18 months or more, but ive yet to see anything of interest in auctions in Bristol.

People (including myself ) were pretty certain that BTL would be an early casualty producing many repo's, bit of a damp squib though so far if you ask me.

Maggs and Allen is our principal aucton house in Bristol, very little by way of repo's reaching its catalogue.

Maybe its different in other parts of the country but there is not a lot of evidence of repo to auction activity around these parts at all.

I know people with BTLs and they have had no difficulty renting as people postpone house purchases and have seen their interest rates decline so, although they have suffered a paper loss on capital value, its not costing them anything to wait it out. In fact the rent more than covers their costs for the first time in years

They are vunerable to increasing rates or falling rents however and then they would be forced sellers.

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I know people with BTLs and they have had no difficulty renting as people postpone house purchases and have seen their interest rates decline so, although they have suffered a paper loss on capital value, its not costing them anything to wait it out. In fact the rent more than covers their costs for the first time in years

They are vunerable to increasing rates or falling rents however and then they would be forced sellers.

Are these people on IO mortgages? They may be vulnerable to a margin call in the LTV has been affected.

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im no expert but from what i have read on here and other places

and my observations of everyday life

i would compare this summer to the eye of a hurricane

images.jpeg

post-21352-1246523720_thumb.jpg

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'repossessions Are Likely To Soar In The Next Two Years

It was only 2 years ago that we were treated to daily headlines of ..............

'House prices expected to soar over the next 2 years'

Edited by grey shark

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Are these people on IO mortgages? They may be vulnerable to a margin call in the LTV has been affected.

The people I know have other incomes and assets and have not staked it all on a roll of the dice. The banks would cut them some slack. Admittedly there are other reluctant landlords who would be wiped out by a boiler needing repair.

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I know people with BTLs and they have had no difficulty renting as people postpone house purchases and have seen their interest rates decline so, although they have suffered a paper loss on capital value, its not costing them anything to wait it out. In fact the rent more than covers their costs for the first time in years

They are vunerable to increasing rates or falling rents however and then they would be forced sellers.

Agree with you on the interest rates but not sure what you mean about rents. Rents have been steadily falling since mid 2008 and are still falling as supply of accidental landlords is historically high. Voids, rent arrears and low rents are all currently hitting landlords much more than a year ago.

Edited by Old_Traveller

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Are these people on IO mortgages? They may be vulnerable to a margin call in the LTV has been affected.

Paddles used to post about margin calls and how this would demolish BTL. Not true so far.

BTW the last post I read from him was about the benefits of cycling to work...methinks hes gone under a juggernaut :lol:

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Agree with you on the interest rates but not sure what you mean about rents. Rents have been steadily falling since mid 2008 and are still falling as supply of accidental landlords is historically high. Voids, rent arrears and low rents are all currently hitting landlords much more than a year ago.

The city centre new build BTLs were never intended to be rented out. They were sold to be flipped - gaming chips if you like. There is a glut of these and they certainly could not be rented out at profit but the modest established basic flats and houses are still renting out quite easily where I live and rentals have not declined as much as interest payments.

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Why do we have so many re-posts of the same article. This happens frequently on here. Does no one ever read the other threads on here.

Edited by spectre

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