Wednesday, Sep 13, 2006

Concern grow over number of people missing mortgage payments

BBC: Charity warning on mortgage risks

770,000 people have missed one or more mortgage payments in the last year a survey for citizens advice said. 1 in 10 people surveyed incorrectly believed that missed payments did not threaten their home.

Posted by denzil @ 07:36 AM (639 views)
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10 Comments

1. Thesqueeze said...

"It also found that 11% of all those surveyed wrongly believed a secured loan meant they could miss repayments but their home would still be safe. " - for real? Do they not read? Show me a mortgage agreement that doesn't say failure to keep up payments could result in the loss of your home.

Wednesday, September 13, 2006 09:59AM Report Comment
 

2. japanese uncle said...

After all banks and building society repossess houses and sell them, while still claiming the balance of the debt to the borrowers, thus are somewhat less motivated to secure the highest selling price possible, leading to the massive wave of houses on the market by possible dumping pricing, hence the HPC. Is this logic flawed? I suspect that this sequence more or less happned last time round in the late 1980's.

Wednesday, September 13, 2006 11:32AM Report Comment
 

3. George Monsoon said...

The article mentions that young people are more likely to fall behind on payments than the older generations This is probably correct because when you talk to young 20 somethings, (who have grown up in an age of cheap money and loan extensions) they are oblivious to the fact that the bank is there to make a profit, and bad debt is not an option in the eyes of the manager.

Wednesday, September 13, 2006 11:39AM Report Comment
 

4. Surfgatinho said...

One of the statistics was 1 in eight 21-24 year olds. Er how could a 21-24 year old (or even a couple) afford anything? Must be the bank of mum and dad! Oops! and now they'll have to put up with them living back at home after just spanking 10K of their money!

Wednesday, September 13, 2006 12:14PM Report Comment
 

5. talking rot said...

I suspect JU might be right but last time around, the crash of the 1990s, there was no Mandelson's easy option; no IVAs. I still maintain that unless a lot of people loose enough money from their pockets (by interest rate rises, becoming unemployed, having to pay higher bills etc) there will not be a crash. The pigeon's are circling but they're not coming to roost yet.

I don't doubt that clever and crafty Gordon Brown will come up with another wag to keep the market from crashing.

Wednesday, September 13, 2006 12:45PM Report Comment
 

6. Cstanhope707 said...

Did anyone watch the BBC this morning, when they allowed that "Herotic" to speak he actually said house prices may even come down and he blamed these "PAWN" property TV shows for hyping everything up. Bet he won't be invited on again.

But the funiest thing was when the other BBC presenter (Info Babe) said she was thinking of buying another property but may not do this now..

Hope the Estate agents watched it bet they are fuming!!!!

Over 700,000 strugling to make mortgage payments on 4.75% this is going to be Bad....

Wednesday, September 13, 2006 12:51PM Report Comment
 

7. Username said...

Anyone noticed the caption under the picture. Smacks a bit of desperation....Its all turning to sh1te but.....

Wednesday, September 13, 2006 01:17PM Report Comment
 

8. bidin'matime said...

The IVA was introduced by the Insolvency Act 1986, so was around in the last crash, although maybe more widely known about now.

The crash is in the hands of buyers, not GB. Gordon can't make people keep buying indefinitely and eventually they will stop. The bubble element of the current market cannot be denied and, like all bubbles, it will go pop.

Wednesday, September 13, 2006 01:34PM Report Comment
 

9. indiablue19 said...

It is obvious from past crashes that, no matter what the government wants and how far it pushes the envelope, banks have no vested interest in hanging onto property when payments are no longer made. They can unload it and push it off to the next buyer as JU says, without turning a hair. Enough of this going on and you have a fullblown HPC, no matter who is [or isn't] happy about it. It's just astounding, in advance of the inevitable, how close to the precipice Banks are being allowed to go -- deathbed loans to parents for children, deathbed loans to children for parents, loans to any four unrelated persons who will share a bathroom, immoral loans to immigrants who can't read the documents, speculative loans for those who speculate on someday having a job, foolhardy loans for those willing to mortgage themselves at 9 or 10 times annual salary. And in tandem with this free-scream free-flow of cheap money we have strident announcements from the media that everyone should heed the "stringent" terms of mortgages, as well as news of growing volumes of unemployment and warnings of increased numbers of foreclosures and general inability of the consumer to meet payments on historic levels of debt obligations.
I can imagine a more coherent day at the Funny Farm.

Wednesday, September 13, 2006 11:09PM Report Comment
 

10. Bfskinner said...

Cstanhope707

what BBC show was it and who was the heretic?

I'd love to see it, mayve its available as a download from the BBC site

BFS

Thursday, September 14, 2006 09:32AM Report Comment
 

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