Jump to content
House Price Crash Forum
Sign in to follow this  
Scunnered

Edinburgh: "bankruptcies Soar To 10 A Week"

Recommended Posts

According to an uncharacteristically downbeat article in the Evening News (http://edinburghnews.scotsman.com/edinburg...m?id=1372702007),

THE number of people declared bankrupt in Edinburgh has soared to almost ten a week, as rising interest rates start to bite.

Debt management experts today warned the problem will worsen as homeowners come to the end of fixed-rate mortgages and house prices stabilise.

"Stabilise": now there's a good word. Maybe it's like the way a rollercoaster stabilises at the top of the slope, just before it starts to go downhill.

They also say

Until recently, spiralling house prices - particularly in Edinburgh - have allowed thousands of homeowners to release equity in their property to pay off other debts. At the same time, banks and building societies have been handing out massive mortgages to buyers.

But many home owners are now being hit by rising interest rate levels, currently at 5.75 per cent following five hikes over the past year, while a levelling-off of house prices makes it harder for owners to release enough money to cover their debts.

Oh dear, oh dear, oh dear. Is it conceivable that this is only the beginning and there's a lot more to come?

Share this post


Link to post
Share on other sites
How do houses get repossessed in Scotland? Is there a public auction?

That's a good question, but I don't know the answer - I've never been repossessed. I don't think that there have ever been huge numbers of repossessions in Scotland before, mainly because we've managed to avoid previous house price bubbles which have been concentrated in Southern England. Most of the Google hits I could find consist of information about the legal processes preceding repossession, but I couldn't find much about what happens to houses once they've actually been repossessed apart from an article from the Times where someone says “Typically a lender with a repossessed property will run a three- or four-week conventional campaign before sending it to auction.” It also appears that in England and Wales a lender can pursue someone for their debts for up to 12 years, but in Scotland the debt lapses after 5 years. (Edit: got that wrong the first time).

Edited by Scunnered

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 349 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.