250,000 Default On Mortgage Payments

[Jason]

http://www.dailyrecord.co.uk/news/tm_objec...-name_page.html

A QUARTER of a million homeowners are behind with mortgage payments and 1.5million more owe on credit cards and loans.

Those in the red with their mortgages could have their homes repossessed if they fail to get the money together.

Finance firm One Advice say 1.9million people have some kind of debt crisis that could see 110,000 heading for bankruptcy.

Of those, 249,000 owe on their mortgages, 661,000 on their credit cards, 416,000 on personal loans and 363,000 on their overdrafts.

Another 837,000 owe money to friends and family and cannot afford to pay them back.

But in Scotland, only four per cent of people with debts are behind with repayments - the lowest proportion in Britain.

This is also in the Daily Mail (but can't find a link)

Edited May 29, 2006 by Jason

[Realistbear]

The Great Crash of 1989-1996 X 2

[the_duke_of_hazzard]

What's a normal number of people behind with mortgage payments?

[eric pebble]

http://www.dailyrecord.co.uk/news/tm_objec...-name_page.html

A QUARTER of a million homeowners are behind with mortgage payments and 1.5million more owe on credit cards and loans.

Those in the red with their mortgages could have their homes repossessed if they fail to get the money together.

Finance firm One Advice say 1.9million people have some kind of debt crisis that could see 110,000 heading for bankruptcy.

Of those, 249,000 owe on their mortgages, 661,000 on their credit cards, 416,000 on personal loans and 363,000 on their overdrafts.

Another 837,000 owe money to friends and family and cannot afford to pay them back.

But in Scotland, only four per cent of people with debts are behind with repayments - the lowest proportion in Britain.

This is also in the Daily Mail (but can't find a link)

All just needs one biggish jolt - another 9/11 or 7/7 - or, further stock market falls [q. likely], or even bigger hike in oild price [q. likely] and, rather like that game with toy bricks where you take out bricks yet trying to keep whole eddifice up until just one brick further - whole thing collapses....... -- this may easily happen.....

[warwickbloke]

What's a normal number of people behind with mortgage payments?

If memory serves correct an average of about 50,000 repos annually from 1992-1997, from a peak of 134,000 in 1991. Steadily rising from 1998 to present day.

[Father Fred]

There is a difference between missing payments and getting repossessed.

Also, I'd be interested in knowing how many BTL investors deliberately (for whatever reason) do not pay the mortgage?

The last house I bought the vendor (BTLer) was in arrears and the bank were in the process of repossessing. A pretty big landlord juging by the numbers of keys he carried round with him, and a nice new car. I do not know the full story but I accidentally opened a letter for him after I moved in and it would appear that he had remortgaged and barely bothered to make a payment since (nearly a year)! Well missed the first two, paid 2 months payments in the third month, then not bothered to make another payment for 3 more months!

I honestly think he decided that the best way forward for him was, as he was selling up anyway, to stop paying the bank. He knew he had plenty of equity and that he could sell prior to repossession, so why pay the bank in the intervening months?

I think deliberate decisions not to pay the mortgage in the short term might well nbe the sort of thing that 10 or 20 years ago no-one would have considered, but nowadays, with people very clued up, people may be prepared to be a bit more cheeky!

[Magpie]

I think deliberate decisions not to pay the mortgage in the short term might well nbe the sort of thing that 10 or 20 years ago no-one would have considered, but nowadays, with people very clued up, people may be prepared to be a bit more cheeky!

Interesting strategy. It would certainly improve the "yield" even if it is a bit short-termist...

[warwickbloke]

There is a difference between missing payments and getting repossessed.

Also, I'd be interested in knowing how many BTL investors deliberately (for whatever reason) do not pay the mortgage?

The last house I bought the vendor (BTLer) was in arrears and the bank were in the process of repossessing. A pretty big landlord juging by the numbers of keys he carried round with him, and a nice new car. I do not know the full story but I accidentally opened a letter for him after I moved in and it would appear that he had remortgaged and barely bothered to make a payment since (nearly a year)! Well missed the first two, paid 2 months payments in the third month, then not bothered to make another payment for 3 more months!

I honestly think he decided that the best way forward for him was, as he was selling up anyway, to stop paying the bank. He knew he had plenty of equity and that he could sell prior to repossession, so why pay the bank in the intervening months?

I think deliberate decisions not to pay the mortgage in the short term might well nbe the sort of thing that 10 or 20 years ago no-one would have considered, but nowadays, with people very clued up, people may be prepared to be a bit more cheeky!

It used to happen years ago as a way of saving some cash 'under the bed' prior to claiming insolvency.

It doesn't really matter if you are bankrupt for £30,000 or £40,000 but £10,000 in cash is handy to have when nobody will give you credit.

[Guest Charlie The Tramp]

A bit off topic but I am watching holiday homes abroad on BBC1.

They are going to release equity in their home to get the £30k deposit required to purchase a holiday home abroad. Says they have a £100k budget. I read that as they will also take on a further £80k loan.

Oh well with the coming recession if it affects them will all end in tears as with many thousands of others.

Edit: Oh no, a presenter is telling them to buy a BTL in Colchester of all places and they will make a bomb.