Monday, July 9, 2007
Strain felt as missed payments double in a year
460,000 mortgage payments missed in the past six months as interest rates bite
Mortgage customers are feeling the pain as interest rates rise with more than 460,000 missing monthly payments in the past six months, new MoneyExpert.com research shows...Around 77,000 mortgage payments are being missed every month, the independent financial comparison website says. And it fears the number could be set to rise as the Bank of England continues to pile on the pressure.
Posted by converted lurker @ 04:01 PM (595 views)
8 thoughts on “Strain felt as missed payments double in a year”
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lvmreader says:
Have some!
lvmreader says:
IDB Summary Demographic Data for United Kingdom
Demographic Indicators: 2005 and 2025 2005 2025 Births per 1,000 population.................... 11 10 Deaths per 1,000 population.................... 10 10 Rate of natural increase (percent)............. 0.1 0.0 Annual rate of growth (percent)................ 0.3 0.2 Life expectancy at birth (years)............... 78.4 81.1 Infant deaths per 1,000 live births............ 5 4 Total fertility rate (per woman)............... 1.7 1.7 Midyear Population Estimates and Average Annual Period Growth Rates: 1950 to 2050 (Population in thousands, rate in percent) Growth Year Population Year Population Period Rate 1950 50,127 2005 60,441 1950-1960 0.4 1960 52,372 2006 60,609 1960-1970 0.6 1970 55,632 2007 60,776 1970-1980 0.1 1980 56,314 2008 60,944 1980-1990 0.2 1990 57,493 2009 61,113 1990-2000 0.3 2000 59,522 2010 61,285 2000-2010 0.3 2001 59,723 2020 63,068 2010-2020 0.3 2002 59,912 2030 64,304 2020-2030 0.2 2003 60,095 2040 64,462 2030-2040 0.0 2004 60,271 2050 63,977 2040-2050 -0.1 Midyear Population, by Age and Sex: 2005 and 2025 (Population in thousands) ------------2005----------- ------------2025----------- AGE TOTAL MALE FEMALE TOTAL MALE FEMALE TOTAL 60,441 29,883 30,558 63,819 31,650 32,168 0-4 3,305 1,694 1,611 3,333 1,709 1,624 5-9 3,574 1,829 1,745 3,372 1,728 1,644 10-14 3,841 1,967 1,874 3,316 1,698 1,618 15-19 3,958 2,028 1,930 3,347 1,708 1,638 20-24 3,910 1,999 1,912 3,589 1,822 1,766 25-29 3,765 1,927 1,838 3,963 2,009 1,954 30-34 4,128 2,118 2,010 4,271 2,171 2,100 35-39 4,684 2,385 2,299 4,345 2,217 2,127 40-44 4,810 2,449 2,361 4,167 2,135 2,032 45-49 4,174 2,110 2,064 3,912 2,009 1,903 50-54 3,713 1,852 1,862 4,164 2,132 2,032 55-59 3,943 1,949 1,995 4,561 2,301 2,260 60-64 3,100 1,515 1,585 4,483 2,236 2,247 65-69 2,675 1,284 1,391 3,675 1,793 1,882 70-74 2,287 1,058 1,229 3,000 1,411 1,589 75-79 1,917 822 1,095 2,765 1,239 1,526 80-84 1,458 554 904 1,746 728 1,018 85-89 746 239 506 1,046 390 656 90-94 340 87 254 512 160 352 95-99 96 18 78 196 46 150 100+ 17 2 15 56 9 47 Source: U.S. Census Bureau, International Data Base, August 2006 version.uncle chris says:
Are you having fun LVM or just demonstrating your talent for posting. Much as I am reassured I’ll have my pick of women when I reach the grand old age of 100, could I ask the link between missed mortgage payments and population demographics?
Cheekie Charlie says:
“It can mean looking to consolidate loans and exploring secured loans against the value of their home. Many of us have considerable equity in our homes which can be used.”
You just don’t get it do you!
lvmreader says:
@Uncle Chris,
Thanks for asking.
What proportion of the UK mortgage population does 460,000 missed mortgage payments represent?
How can our “banking system” cope with such a large number of defaults? Answer: it likely cannot.
As an exercise, assuming the average household is 2.31 people, 460,000 missed mortgage payments equates to over 1m people in hock. If these people are all aged 20 – 60, then we are looking at 3% defaults in the ENTIRE population of people aged 20 – 60. Someone, I doubt our banks’ liquidity covenants can cope with this strain.
Note: the total number of people in the UK aged 20 – 59 is 33,127,000
confused76 says:
Let me congratulate lmvreader for posting proficiency, and let me give you a simple benchmark:
there were only circa 450,000 repossessions in total between 1990 and 1993
if we have 470k arrears now we are in deepest sh**
but it is probably not 470k different mortgages but multiple missed monlthly payment on the same mortgage.
At any rate, still we probably have some 150-200k borrowers in deep sh**
Stoatgobbler says:
LVM, no it doesn’t. It’s 460,000 missed payments in total, so possibly as few as 76 odd thousand households in arrears.
dobber says:
Great post guys,
If I can add that a few hundred thousand fixed rate mortgages are just about to end and get reset, with some monthly mortgage bills increasing by 30% or more.
Oh dear, poor old banks, profit margins won’t be so clever this time next year.