Fergus Says 'stop Belly-Aching'

[LetsGetReadyToTumble]

What 900 properties, worth £180m, that implies a loss of £6.5m before breakfast.

I seem to remember from a few months back, that Fergus admitted he'd be bankrupt if the bank rate went up to 3%.

Presumably, if the rate remains at 0.5%, he'll still be bankrupt is his asset values keep dropping and reach a tipping point?

I wonder what further price falls would achieve this.

[Dorkins]

What 900 properties, worth £180m, that implies a loss of £6.5m before breakfast.

And the big question is, how much equity does he have to lose? Given that the guy was a maths teacher, he can't have brought more than 6 figures of his own cash to the party. Since he is probably on IO mortgages, almost all of the equity he has comes from HPI. House prices are roughly back where they were in 2004, so every house he bought since then is likely now in negative equity. Soon it will be 2003, 2002, 2001 and the equity in the earlier properties will be shrinking too. Is he already in negative equity on the portfolio as a whole? I don't understand why his lenders aren't stepping in, the longer they wait the more they will lose.

[darwin]

What 900 properties, worth £180m, that implies a loss of £6.5m before breakfast.

Har har har.