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Home Repossessions Fall, But Uk Faces 'arrears Timebomb'

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http://www.guardian.co.uk/money/2011/aug/11/home-repossessions-fall-arrears-timebomb

The number of homes being repossessed fell by 1% in the second quarter of the year to 9,000, compared with 9,100 in the first three months of 2011, according to the Council of Mortgage Lenders (CML). But some housing insiders claim the UK is set to experience an "arrears timebomb", which will go off as soon as rates rise next year.

The three-month figure represents a 7% fall on the number of home repossessions recorded in the second quarter of 2010 and takes the total number in the first half of 2011 to 18,100 compared with 19,500 in 2010.

But the number of mortgages in arrears of between 1.5% and 2.5% of the outstanding balance edged up from 77,800 to 78,500 in the second quarter of the year, and the CML did not revise its total repossession forecasts for 2011 and 2012, which stand at a respective 40,000 and 45,000.

....

"But lenders' forbearance cannot last forever and if they change their approach the rug will quickly be pulled from under many late payers, leading to thousands more repossessions.

"While this week's low growth forecast from the Bank of England is likely to mean an interest rate rise is still some time off, when – not if – the rate goes up there will be a big spike in arrears.

"The current low rate means that many who are just able to meet their repayments now will soon be swamped by even a small rate rise. Together they form an arrears timebomb, which will go off as soon as rates rise next year."

We must keep prices up, the banks have a problem if they repossess there might be price discovery which affects their made up asset price figures. The banks have to keep the fantasy going to stay in business.

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Interesting article.

"The CML has also announced that the value of new buy-to-let loans increased by 21% in the second quarter of 2011, driven mainly by remortgaging. "

Could this maybe down to the ever increasing amount of reluctant LL's having to swtich to BTL because they cant sell thier homes for the overinflated prices they seek? Whilst I have been looking for another rental, I have noticed recently in my area, lots of new rentals coming to market, and nearly every one, has also been trying to sell.

"if facing repossession, find out if you qualify for the government's mortgage rescue scheme, which may allow you to sell your house but continue to live in it and pay rent. Ask your local council for details".

What does this mean? Does it mean the local councils are buying people's houses who have not been paying their mortgages?

I wonder how widespread this is?

A clever way of keeping those house price statistics nice and high, and keeping repossessions down, if so.

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What does this mean? Does it mean the local councils are buying people's houses who have not been paying their mortgages?

I wonder how widespread this is?

A clever way of keeping those house price statistics nice and high, and keeping repossessions down, if so.

Don't think so! I'm looking at a repo tomorrow! I don't think it will be the last! :huh:

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I'm looking at a repo tomorrow! I don't think it will be the last! :huh:

When you go vieiwing a repo, how do you know it is a repo?

Do you just guess by tell tale signs such as being empty and unkept, or do you ask the agent?

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When you go vieiwing a repo, how do you know it is a repo?

Do you just guess by tell tale signs such as being empty and unkept, or do you ask the agent?

The Homes Under The Hammer TV crew in the background.

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The Homes Under The Hammer TV crew in the background.

:lol:

... Oh..and mentioning HUTH...

I reckon that they must recently be running out of people to film making money from buying at auction, because they are showing a constant stream of repeats now.

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350,000 hard working families "helped" with SMI are delighted they are being supported by the taxpayer.

Thats 6 months continuous supply of affordable housing.

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In which direction are they "falling" today? :lol::blink:

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350,000 hard working families "helped" with SMI are delighted they are being supported by the taxpayer.

Thats 6 months continuous supply of affordable housing.

Bloo Loo,

are there any figures on how the numbers are increasing/decreasing on SMI?

And does anyone have any figures showing how much Housing Benefit is decreasing under the new set of rules? FWIW, I bet the figures have shrugged off the pathetic rule changes and just kept rising.

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Bloo Loo,

are there any figures on how the numbers are increasing/decreasing on SMI?

And does anyone have any figures showing how much Housing Benefit is decreasing under the new set of rules? FWIW, I bet the figures have shrugged off the pathetic rule changes and just kept rising.

It is a good question..I dont know.

All I know is they decreased the rate it was paid, regardless of how much it actually was costing you to mortgage.

Some current facts would be nice, but the current crop of liars seem to gloss right past this one...the last PM wore the figures are a badge of honour.

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It is a good question..I dont know.

All I know is they decreased the rate it was paid, regardless of how much it actually was costing you to mortgage.

Some current facts would be nice, but the current crop of liars seem to gloss right past this one...the last PM wore the figures are a badge of honour.

BL,

and the AAA credit rating and record bond prices isnt causing anyone to look at how money can be saved. There appears to be little pressure at all to change anything.

Mind you, I am sure that the markets will suddenly wake up to the fact that the Tories havent done anything on the deficit front except crimp growth through raising taxes, but when that happens it is likely to be too late.

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BL,

and the AAA credit rating and record bond prices isnt causing anyone to look at how money can be saved. There appears to be little pressure at all to change anything.

Mind you, I am sure that the markets will suddenly wake up to the fact that the Tories havent done anything on the deficit front except crimp growth through raising taxes, but when that happens it is likely to be too late.

Ive had a squint at the SMI gov website...its still there alive and kicking, along with the council rescue funds and mortgage to let schemes.

As for cuts, they mean spending less than last years budget, which it appears, means spending is going UP.

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350,000 hard working families "helped" with SMI are delighted they are being supported by the taxpayer.

Oddly the Express has yet to discover this particular group of 'scroungers' I notice.

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http://www.guardian.co.uk/money/2011/aug/11/home-repossessions-fall-arrears-timebomb

We must keep prices up, the banks have a problem if they repossess there might be price discovery which affects their made up asset price figures. The banks have to keep the fantasy going to stay in business.

...the Labour infested Guardian backed Gordo and his pals who created the fantasy land ....and today they encourage the likes of odd Balls and Ed the Red to come back and borrow us into destruction ...reading anything they write is a waste of time.... :rolleyes:

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  • 338 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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