Repossession Is Being Masked By ‘distress Sales’

[buytoilet]

Why repossessions are not rising

Mortgage magazine for brokers

[drrayjo]

From same;

FTB loans 'double in four years'

1 August, 2007

Abbey Mortgages has reported the average first-time buyer (FTB) mortgage has risen to £130,000 compared to £75,000 in 2003.

First-time buyers are also borrowing more money than ever. 53 per cent have a mortgage of more than £150,000 compared to just 16 per cent four years ago – a 231 per cent increase. The research also shows an increase in the number of people borrowing more than 75 per cent loan-to-value – up by 13 per cent to almost 80 per cent in 2007, versus only 67 per cent in 2003.

Nici Audhlam Gardiner, head of mortgages at Abbey, commented: “We are fully aware of the difficulties first-time buyers have in getting onto the property ladder. Our research shows that they have to borrow more and more to get even a small foot on the ladder.”

[29929BlackTuesday]

Very very very interesting. I've signed up for their newsletter as they sound fairly straight. Weren't Ray Boulger's comments priceless.

It would explain quite a few things you know.

[PropertyGuru]

From same;

FTB loans 'double in four years'

1 August, 2007

Abbey Mortgages has reported the average first-time buyer (FTB) mortgage has risen to £130,000 compared to £75,000 in 2003.

First-time buyers are also borrowing more money than ever. 53 per cent have a mortgage of more than £150,000 compared to just 16 per cent four years ago – a 231 per cent increase. The research also shows an increase in the number of people borrowing more than 75 per cent loan-to-value – up by 13 per cent to almost 80 per cent in 2007, versus only 67 per cent in 2003.

Nici Audhlam Gardiner, head of mortgages at Abbey, commented: “We are fully aware of the difficulties first-time buyers have in getting onto the property ladder. Our research shows that they have to borrow more and more to get even a small foot on the ladder.”

that's just madness.

Its not as if wages have doubled in the same period or interest rates had halved

It's the parabolic peak before the crash.

It's also actually very scary - the number of clueless young people who have unwittingly indentured themselves for life to the current financial system is beyond any experience I have. There can now, by definition, be nothing but agony, for millions.

[Timm]

Our research shows that they have to borrow more and more to get even a small foot on the ladder.”

That would be handy. If I had a small foot, I could get on a smaller ladder.

And my home would have more square feet.

[drrayjo]

That would be handy. If I had a small foot, I could get on a smaller ladder.

And my home would have more square feet.

Edited August 1, 2007 by drrayjo

[grey shark]

However, Ray Boulger, senior technical manager for John Charcol, rubbishes the idea figures are being skewed and points out that the early 1990s was a very different market. He says: “Anyone struggling with repayments is going to be better off selling their property and the advice brokers will give those struggling with repayments is to downsize. If you compare figures now to previous ones, there is no reason why there should be significantly more or less people selling to avoid repossession.”

While Boulger admits the housing market is not as good as it has been, he maintains: “People are more financially aware than in the 90s with arguably better advice.

Good to see the likes of Boulger sounding ever more desperate ...................

“People are more financially aware than in the 90s with arguably better advice.

Do me a fupping favour

Edited August 1, 2007 by grey shark

[buytoilet]

I think if people where more aware that this was going on it would change sentiment