Sunday, July 22, 2007
Timebomb reported by the Times… the end is nigh!
Interesting weeks of profit warnings ahead... "Analysts forecast that leading banks will announce a surge in mortgage arrears as well as bad-debt charges linked to mortgages. UK banks wrote off just £56m in the first quarter of this year. But this is thought to have more than doubled to £140m between April and June. Some analysts now predict that the losses could reach £500m for 2007 and jump to £650m in 2008.However, bankers believe the impact of rising interest rates will be most severe in the second half of 2007 and the first half of next year. More than 2m homeown-ers will be forced to take out new mortgages at higher rates when their two-year fixed-rate deals mature in the next 18 months"