Friday, Nov 03, 2006

Mortgage repossession orders at a five year high

BBC News: Mortgage repossession orders rise

Mortgage repossession orders made by courts in England and Wales are at a five-year high, indicating that more homeowners are under financial strain.

More than 24,000 orders were approved in the past three months, a 22% increase on the same period in 2005.

Posted by monty @ 05:13 PM (437 views)
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7 Comments

1. paul said...

If the Bank of England listens to this we'll be sure where their real priorities lie.

Friday, November 3, 2006 06:48PM Report Comment
 

2. inbreda said...

Now THIS is the kind of evidence we've been expecting to back up what we've been claiming for so long.

With IR so low, if inflation rears its head the UK is stuffed.

Friday, November 3, 2006 08:06PM Report Comment
 

3. Nohpc said...

How many times do you have to default on payments for your home to be reposessed. Are banks jumping in sooner these days than they did in the past?

Friday, November 3, 2006 10:19PM Report Comment
 

4. sovietuk said...

Mugs borrowing high income multiples take note of the above.

Saturday, November 4, 2006 11:43AM Report Comment
 

5. indiablue19 said...

Nophc....

I think the even scarier prospect than simply being repossessed is the news that lenders can chase mortgagees for up to twelve years to recover resale shortfall. For instance, you have a 120,000 mortgage on a property worth 135,000. You default and the property is repossessed. The bank unloads the place for 100,000 in the interest of getting cash back in the till as quickly as possible and you still owe 20,000, which it is entirely likely to hound you for, especially if you are still working. Probably a major chunk of a person's annual salary. And that's a fairly nominal example in a comparatively reasonable price range and mortgage in these times. High income multiples indeed!

Saturday, November 4, 2006 11:59PM Report Comment
 

6. This comment has been removed as it was found to be in breach of our Blog Policies.

 

7. Branleur said...

Banks are in the business of lending money; if they don't lend they don't earn! If house prices remained fairly static then inflation would dilute the banks profits unless the bank rate was increased annually by an amount in excess of the inflation rate, which of course is very unlikely, so its 100% in the banks interest to help to massage up house prices and lend 5 or any multiple thereof to borrowers who are stuck in a country with more buyers than houses (or be to be more correct - affordable houses). As there are more people on 20/30,000p.a. than 200,000pa. the demand will never cease whilst these rapacious usurers coin it in, knowing that if the borrowers default then the full majesty of the law is at their disposal to bankrupt them and cease the property. In France the mortgage rate is fixed by the Government and banks are not permitted to exceed that rate; if they do lend above, and the borrower defaults, the courts will not uphold the banks claim!!! Paradise!!!
kenneth bate, france

Sunday, November 5, 2006 07:22PM Report Comment
 

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