Repossessions And Dirty Dealing On The Rise

[Guest consa]

Mr A was delighted. Not only were the property developers going to sell him a brand new house, they were going to find him a mortgage and prepare his self-employed accounts for him, in order to assist in getting the loan. The problem came when he was presented with the draft accounts: they showed him earning considerably more than he actually did. Still, he wanted the property so he let the application go through. Less than a year later he was facing repossession proceedings because he couldn’t afford the monthly instalments.

http://www.timesonline.co.uk/article/0,,200-2109820,00.html

Figures from the UK's Council of Mortgage Lenders (CML) show that home repossessions rose by 70% in 2005, rising to 10,250 homes.

Despite the apparently large rise, the figures represented the third lowest yearly figure since 1983 and CML reported that the rise was in line with its forecasts. This being the case, the CML said it was confident of its predictions for 2006 and 2007, in which it believes 12,000 homes will be repossessed due to mortgage payment difficulties.

http://firstrung.co.uk/articles.asp?pageid...1255&cat=44-0-0

Edited March 31, 2006 by consa

[Solvent Celt]

In other words high property prices are being supported by fraud.

But why should the borrowers worry about lying on mortgage applications when government ministers do it and get away with it.

[firsttimebuyer]

In other words high property prices are being supported by fraud.

But why should the borrowers worry about lying on mortgage applications when government ministers do it and get away with it.

no, in other words people cannot afford these houses so turn to fruad, but fraud will not sustain high house prices.

70% rise in house reposessions shows ONE thing. People can bite, but they cannot CHEW! So they loose the house.

All i can say is they have nobody but themselves to blame. I cannot afford a house yet, i have a 15k deposit but i'm not putting myself forward for years of financial insecurity! no way josay!