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eric pebble

The Times: Soaring Repayments For 250,000 As Uk Faces Its Own Sub-prime Crisis

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The Times: Soaring repayments for 250,000 as UK faces its own sub-prime crisis

Britain is on the brink of its own sub-prime mortgage crisis, with almost a quarter of a million of the most vulnerable homeowners facing soaring repayments and the threat of repossession.

Mortgage experts said that despite yesterday’s £10 billion injection into the market by the Bank of England, rates for an estimated 230,000 to 300,000 sub-prime borrowers will soar to unaffordable levels of more than 10 per cent when they reach the end of their current deal.

Strict new borrowing rules will prevent homeowners with the poorest credit histories from remortgaging because lenders may refuse to offer them a new deal when they come to the end of their current rate, leaving them stranded on expensive variable rates and adding hundreds of pounds to their monthly mortgage bills.

More here - http://business.timesonline.co.uk/tol/busi...icle2493000.ece

The laughable attempt by the VIs to try and pretend that there is no Sub-Prime problem here in the UK is utterly pathetic!! The UK has a WORSE Sub-Prime problem than the US!!!

Mortgage customers 'urged to lie'

Housebuyers are being encouraged to break the law in order to obtain huge mortgages, the BBC has discovered.

http://news.bbc.co.uk/1/hi/business/3222053.stm

The Money Programme uncovers massive mortgage fraud

BBC TWO's The Money Programme has revealed a huge mortgage fraud with brokers from some of Britain's biggest estate agents and financial advice groups advising customers to break the law and lie about their incomes to get massively bigger mortgages.

And it shows how the illicit cash raised by this method has been pouring into the housing market, boosting prices and leaving many people risking financial ruin.

http://www.bbc.co.uk/pressoffice/pressrele..._mortgage.shtml

Edited by eric pebble

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Crikey why did this happen and when are they going to cut interest rates to stop it?

This is so unexpected. I've just bought a studio flat in Plymouth and I don't think I am going to be able to afford the increase on my £250k 125% mortgage. Help me, please cut interest rates.

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Crikey why did this happen and when are they going to cut interest rates to stop it?

This is so unexpected. I've just bought a studio flat in Plymouth and I don't think I am going to be able to afford the increase on my £250k 125% mortgage. Help me, please cut interest rates.

Gordon: leave it with me, and don't be concerned. ;)

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Crikey why did this happen and when are they going to cut interest rates to stop it?

This is so unexpected. I've just bought a studio flat in Plymouth and I don't think I am going to be able to afford the increase on my £250k 125% mortgage. Help me, please cut interest rates.

Please tell us you are joking.

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Crikey why did this happen and when are they going to cut interest rates to stop it?

This is so unexpected. I've just bought a studio flat in Plymouth and I don't think I am going to be able to afford the increase on my £250k 125% mortgage. Help me, please cut interest rates.

Good one :lol::lol::lol:

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Guest Popalot
Crikey why did this happen and when are they going to cut interest rates to stop it?

This is so unexpected. I've just bought a studio flat in Plymouth and I don't think I am going to be able to afford the increase on my £250k 125% mortgage. Help me, please cut interest rates.

Are you being ironic, or as a HPC member did you really not see this coming?

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Its hysterical how many people on this forum just dont get irony. I thought that was just an American trait. Bit like those sub-prime mortgages. Thank goodness we don't have those over here either.

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Your right, Gordon really does want to contain inflation even if it means crashing the housing market and losing an election. :rolleyes:

Gordon HAS to fight inflation. Otherwise public sector pay will go through the roof and where will the money come from?

Inflation means unemployment and unemployment (of public sector workers in particular) means bye bye New Labour.

Rather a hpc than dole queues every time for Mr Brown.

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The Times: Soaring repayments for 250,000 as UK faces its own sub-prime crisis

Britain is on the brink of its own sub-prime mortgage crisis, with almost a quarter of a million of the most vulnerable homeowners facing soaring repayments and the threat of repossession.

Mortgage experts said that despite yesterday’s £10 billion injection into the market by the Bank of England, rates for an estimated 230,000 to 300,000 sub-prime borrowers will soar to unaffordable levels of more than 10 per cent when they reach the end of their current deal.

Strict new borrowing rules will prevent homeowners with the poorest credit histories from remortgaging because lenders may refuse to offer them a new deal when they come to the end of their current rate, leaving them stranded on expensive variable rates and adding hundreds of pounds to their monthly mortgage bills.

More here - http://business.timesonline.co.uk/tol/busi...icle2493000.ece

The laughable attempt by the VIs to try and pretend that there is no Sub-Prime problem here in the UK is utterly pathetic!! The UK has a WORSE Sub-Prime problem than the US!!!

Mortgage customers 'urged to lie'

Housebuyers are being encouraged to break the law in order to obtain huge mortgages, the BBC has discovered.

http://news.bbc.co.uk/1/hi/business/3222053.stm

The Money Programme uncovers massive mortgage fraud

BBC TWO's The Money Programme has revealed a huge mortgage fraud with brokers from some of Britain's biggest estate agents and financial advice groups advising customers to break the law and lie about their incomes to get massively bigger mortgages.

And it shows how the illicit cash raised by this method has been pouring into the housing market, boosting prices and leaving many people risking financial ruin.

http://www.bbc.co.uk/pressoffice/pressrele..._mortgage.shtml

But people won't be stuck on SVR here like they are in USA. They can remortgage.

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Its hysterical how many people on this forum just dont get irony. I thought that was just an American trait. Bit like those sub-prime mortgages. Thank goodness we don't have those over here either.

It is a bit worrying seeing how obvious it was. I'm not exactly bright but I got it straight away.

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Eric

Dont forget second charge secured loans - these are almost as numerous as mortgages and the rates are even higher.

The bulk of this market is made up of SUB PRIME BORROWERS - not many thinking people would pay the extreme rates on these loans.

Furthermore only a handfull of lenders originate all these loans (although many are marekted by white label lenders which are merely wholesalers of the ogiginators own products) and they are withdrawing from the market. Lehman Bros are major players and market via the likes of SPML and Prefferred both of which are withdrawing from the second charge market.

Those remaining have increased rates by at least 2% and tightened criteria. The lenders of last resort will no longer be able to rescue those on the edge.

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Eric

Dont forget second charge secured loans - these are almost as numerous as mortgages and the rates are even higher.

The bulk of this market is made up of SUB PRIME BORROWERS - not many thinking people would pay the extreme rates on these loans.

Furthermore only a handfull of lenders originate all these loans (although many are marekted by white label lenders which are merely wholesalers of the ogiginators own products) and they are withdrawing from the market. Lehman Bros are major players and market via the likes of SPML and Prefferred both of which are withdrawing from the second charge market.

Those remaining have increased rates by at least 2% and tightened criteria. The lenders of last resort will no longer be able to rescue those on the edge.

But aren't most of these now owned by Investment banks who make almost limitless profits and who by their very nature play the long game?

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But aren't most of these now owned by Investment banks who make almost limitless profits and who by their very nature play the long game?

And before you ask, yes it was.

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Eric

Dont forget second charge secured loans - these are almost as numerous as mortgages and the rates are even higher.

The bulk of this market is made up of SUB PRIME BORROWERS - not many thinking people would pay the extreme rates on these loans.

Furthermore only a handfull of lenders originate all these loans (although many are marekted by white label lenders which are merely wholesalers of the ogiginators own products) and they are withdrawing from the market. Lehman Bros are major players and market via the likes of SPML and Prefferred both of which are withdrawing from the second charge market.

Those remaining have increased rates by at least 2% and tightened criteria. The lenders of last resort will no longer be able to rescue those on the edge.

Yep -- it is all getting pretty hairy out there...

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Being stuck on a SVR will save these people when Gordon instructs the BoE to slash rates to 2.5% over the next 2 years.

Yep, that's what he'd like to do. Shame he won't be able to. Inflation will rocket if this happens as the pound will tank.

And, of course, we're already seeing a divergence between bank base rate and mortgage rates. (We have, of course, been here before.)

What WILL THEY DO if they drop IRs and mortgage rates don't follow? They won't be able to control things! They think they can control financial markets but they are about to realise that, when the chips are down, Mr Market plays by his own rules.

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