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Mortgage Industry On The Brink of Collapse (CNBC)


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In America you can just hand back the keys (jingle mail) 

but in the UK it’s full recourse lending, meaning you can’t just hand back the keys. 

America is much more boom and bust than the UK which has its positives and negatives. 

but generally people struggling in the UK will do everything in their power to pay either mortgage or rent before other expenses. 

 

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2 hours ago, jiltedjen said:

In America you can just hand back the keys (jingle mail) 

but in the UK it’s full recourse lending, meaning you can’t just hand back the keys. 

America is much more boom and bust than the UK which has its positives and negatives. 

but generally people struggling in the UK will do everything in their power to pay either mortgage or rent before other expenses. 

 

In some states, yes. Not all.

Non recourse.

The US mortgage market is very very very different from UK.

Banks only hold the(prime I.e checked) debt the a short period before it goes in Fannie for Freddie mac GSE pool.

You can fix for 30y then remortgage at whim.

 

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3 hours ago, Roman Roady said:

So once again the cry is "the Govt HAS to step in and provide liquidity"...amazing.

I think we are on the verge of 1970s Hyper-inflation. Printing is beyond the scale of the 1970s and 2009.

 

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24 minutes ago, Mikhail Liebenstein said:

I think we are on the verge of 1970s Hyper-inflation. Printing is beyond the scale of the 1970s and 2009.

 

Eventuallly, timing is key. 

Printed to save the banks last time, printing to save everything this time - can the proles handle it?

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The trouble is the govt are twisting banks arms somewhat unsuccessfully to stop paying dividends and lend more readily to business. They can't push easy residential mortgage lending on top of this. There's a long queue for govt help. Moral hazard anyone?

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19 hours ago, jiltedjen said:

In America you can just hand back the keys (jingle mail) 

but in the UK it’s full recourse lending, meaning you can’t just hand back the keys. 

America is much more boom and bust than the UK which has its positives and negatives. 

but generally people struggling in the UK will do everything in their power to pay either mortgage or rent before other expenses. 

 

Jingle mail as it is known. 

"Here you are lender, here are keys, your problem now."

Actually I do think it is quite a sensible system.

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  • 417 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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