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Realistbear

Terrifying Percentage Of Arrears Shows Cracks In Mortgage Business

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http://www.telegraph.co.uk/money/main.jhtm...27/ccrack27.xml

Are the cracks showing of home loans?

By Ambrose Evans-Pritchard

(Filed: 27/07/2006)

With experts worried about rising debt, one 'sub-prime' mortgage lender has
a third of its borrowers in arrears
, writes Ambrose Evans-Pritchard
There was a time when bankrupts and serial bad debtors had little chance of climbing on to the housing ladder, either in Britain or America. These days they can call up any number of "sub-prime" lenders eager to cobble together a mortgage - at a fee - which is then packaged with hundreds of other loans into a security for sale to willing funds or institutions.
It is a lucrative trade so long as the economy is humming along and house prices are pushing ever upwards, earning lenders an average 1.2pc margin over cost of capital compared with 0.2pc for normal mortgages. But, like canaries down a mine, these types of mortgages are the first to tell us when economic oxygen is running low.

This is what is holding up the market? :lol::lol::lol:

Tick tock tick tock :o

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  • 301 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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