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Standard & Poor's Warns Of Wave Of House Repossessions

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http://www.guardian.co.uk/business/2010/sep/09/standard-and-poors-repossessions-warning

The government's planned spending cuts and tax rises could trigger a fresh wave of house repossessions as hard-pressed borrowers find it impossible to meet their mortgage payments, the ratings agency Standard & Poor's said today.

In a downbeat assessment of the UK property market, S&P stressed that house prices remained overvalued and many families were vulnerable to George Osborne's budgetary squeeze.

The Treasury has acknowledged that attempts to reduce Britain's deficit during this parliament will cost hundreds of thousands of jobs in the public sector, with knock-on effects in the private sector as well.

"We expect house price movements to remain uncertain in the near term, and we note that a high percentage of non-conforming borrowers remain in severe arrears. Therefore, possible future increases in unemployment or interest rates may cause a further wave of repossessions," said S&P credit analyst Neil Monro.

The ratings agency added: "The looming fiscal austerity package and the possibility of interest rates rising again could significantly test some borrowers' ability to make their mortgage payments, in our opinion.

"This is particularly true in the context of still severely curtailed refinancing options, due to lender-initiated tightening of their criteria, as well as potential future changes to regulation resulting from the Financial Services Authority's Mortgage Market Review."

S&P said fiscal tightening could lead to a second wave of deterioration in UK prime and non-conforming residential mortgage-backed security (RMBS) collateral performance and it remained cautious about the longevity of the bounce-back in UK house prices.

"In our view, UK housing remains overvalued on a fundamental basis," it said. "For example, the average house-price-to-income affordability ratio for first-time buyers is still stretched at 4.3 times, relative to the long-term average of 3.3 times."

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"Standard & Poor's believes UK housing is overvalued 'on a fundamental basis'."

Gravity always wins, hence, "this sucker is going down".

To quote all the fighter pilots in the rest of the World when the Americans figure out how to bring down the alien spaceships in 'Independent Day' - "About time!".

:rolleyes:

Edited by The Masked Tulip

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"Standard & Poor's believes UK housing is overvalued 'on a fundamental basis'."

Gravity always wins, hence, "this sucker is going down".

"Standard & Poor's believes UK housing is overvalued 'on a fundamental basis', due to the endemic & deliberate use of PREDATORY LENDING & LIAR LOANS by dishonest mortgage providers, which artificially and fraudulently skewed the cost of housing from 1998/2002 onwards. "

Edited by eric pebble

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"Standard & Poor's believes UK housing is overvalued 'on a fundamental basis', due to the endemic & deliberate use of PREDATORY LENDING & LIAR LOANS by dishonest mortgage providers, which artificially and fraudulently skewed the cost of housing from 1998/2002 onwards. "

I am going to love being a character witness in your libel trial :unsure::unsure:

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"In our view, UK housing remains overvalued on a fundamental basis," it said. "For example, the average house-price-to-income affordability ratio for first-time buyers is still stretched at 4.3 times, relative to the long-term average of 3.3 times."

So what is this mythical FTB earning? And what age/job are they doing?

For example, looking online, a Personal Banking Advisor job for Santander in Aberdeen pays between £14,280 and £17,850, and this would be for someone with at least a couple years experience. 4.3 multiplier gives you a mortgage of £61,000 and £76,000 - what does that buy these days?

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So what is this mythical FTB earning? And what age/job are they doing?

For example, looking online, a Personal Banking Advisor job for Santander in Aberdeen pays between £14,280 and £17,850, and this would be for someone with at least a couple years experience. 4.3 multiplier gives you a mortgage of £61,000 and £76,000 - what does that buy these days?

A dog kennel on a chav estate.... :rolleyes:

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So what is this mythical FTB earning? And what age/job are they doing?

For example, looking online, a Personal Banking Advisor job for Santander in Aberdeen pays between £14,280 and £17,850, and this would be for someone with at least a couple years experience. 4.3 multiplier gives you a mortgage of £61,000 and £76,000 - what does that buy these days?

******ing nice R8

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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