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Uk Faces Jump In Home Repossessions If Economy Slows, Says Standard & Poor's


RichM

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HOLA441

UK faces jump in home repossessions if economy slows, says Standard & Poor's

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8293817/UK-faces-jump-in-home-repossessions-if-economy-slows-says-Standard-and-Poors.html

Britain is facing "a considerable increase in repossessions" if the economy slows, according to ratings agency Standard & Poor's, as almost one-in-five problem mortgages are "severe" cases that show little sign of improvement.

Later on in the article:

"As a result, the stock of severe arrears cases has steadily increased, and as of the third quarter of 2010 represented almost 20pc of the mortgage balances of the UK non-conforming transactions that we rate – twice the reported level of two years prior," the report said.

Terrifying. There's not going be to be an easy climb out of this recession. They'll have to scrape away two feet of concrete before we see any green shoots.

Edited by RichM
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Sounds like all it will take is one lender to decide to crack down and reclaim their assets now before prices get any lower and we could see a flood of repos. Add rising umemoyment and even (maybe) a rate rise on top and it'll be one hell of a crash.

We can but hope.

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0.5% was a gift, maybe not a get out of jail free card but it must have allowed a lot more people to sort themselves out - instead, the severe arrears rate DOUBLED.

All the time I have spent on this site and I still find myself scarcely believing that it is as bad as the raw data (i.e. debt statistics, balance of the economy) suggests.

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0.5% was a gift, maybe not a get out of jail free card but it must have allowed a lot more people to sort themselves out - instead, the severe arrears rate DOUBLED.

All the time I have spent on this site and I still find myself scarcely believing that it is as bad as the raw data (i.e. debt statistics, balance of the economy) suggests.

...how better things could have been if the credit expansion had been nipped at the bud, interest rates could now have been higher, house prices lower and both savers and borrowers could live without worry......but the greed of the few spoilt it for the many. ;)

Edited by winkie
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0.5% was a gift, maybe not a get out of jail free card but it must have allowed a lot more people to sort themselves out - instead, the severe arrears rate DOUBLED.

All the time I have spent on this site and I still find myself scarcely believing that it is as bad as the raw data (i.e. debt statistics, balance of the economy) suggests.

Yes, fair reflection.

This gift keeps on giving, and If people can't even stabilise their finances, let alone improve them, the finances are doomed.

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0.5% was a gift, maybe not a get out of jail free card but it must have allowed a lot more people to sort themselves out - instead, the severe arrears rate DOUBLED.

and just to think that over the coming 10-20 years we can expect IRs to end up being - gradually - higher

there will be no respite in the medium-long term, a mortgage looks more and more like a ball and chain - I have seen this attitude to housing debt change recently, people envy me now for being a renter and in the black with liquid funds to invest elsewhere, pity the mortgage-owners

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