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Credit Crunch Sub Prime Fall Out Now Enters 'second Phase' Of Credit Tightening

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Credit crunch sub prime fall out now enters 'second phase' of credit tightening

It seems that the effects from the credit crunch on the sub prime mortgage market are far from over.

Julia Harris, mortgage analyst from moneyfacts.co.uk looks at recent changes to the ever-depleting market...

"Over the last week we have seen a host of sub prime lenders including Amber Homeloans, Scarborough Specialist Mortgages and SALT cease new lending of sub prime mortgages. In addition Northern Rock has announced that it will no longer be offering sub prime mortgages funded by Southern Pacific Mortgage Limited.

"This is in huge contrast to what was happening last year. In March 2007 there were 32 lenders offering sub prime mortgages; today there are only 20. The number of mortgages available to those with adverse credit is dropping as well. A year ago there were 6,501 products available; today there are 1,867, a drop of 71%.

"Lenders are finding it increasingly difficult to find funding for sub prime mortgages. Investment banks have been hit hard by the troubles facing the US sub prime market and therefore are less willing or able to securitise the mortgage books of UK sub prime lenders.

http://firstrung.co.uk/articles.asp?pageid...&cat=44-0-0

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But, but...., I thought there wasn't any sub-prime in this country as that nice Mr Darling refers to sub prime as an American problem. :lol:

as long as house prices keep going up there is no sub prime

in a rising market, everyone, including that dog that got a mortgage is prime

its only when things turn, does the shit start to stink

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as long as house prices keep going up there is no sub prime

in a rising market, everyone, including that dog that got a mortgage is prime

its only when things turn, does the shit start to stink

Bump for the truth Brother Jeramiah.

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But, but...., I thought there wasn't any sub-prime in this country as that nice Mr Darling refers to sub prime as an American problem. :lol:

amazing how the 'newspeak' has moved on a pace during recent months as the inevitable has been accepted <_< Now we do have a sub prime problem, "which came from the States" :blink: ergo "i'ts not our fault guv".

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amazing how the 'newspeak' has moved on a pace during recent months as the inevitable has been accepted <_< Now we do have a sub prime problem, "which came from the States" :blink: ergo "i'ts not our fault guv".

I was thinking exactly the same thing - it really is bizarre that six months or so ago, everyone was parroting 'there is no sub prime in the UK', yet now it's an accepted term!

Winston Smith must be working flat out in his little cubicle cutting up all the old newspapers...

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  • 297 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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