Wednesday, July 4, 2007

WOW… no subprime here, eh?

Watchdog acts to curb five sub-prime brokers

"We currently estimate annual lending in this sector to be around £30 billion, or approximately 8% of the market. As the amount of personal debt in the UK continues to grow, particularly in a rising interest rate environment, so will the number of borrowers with poor credit history. There must be the right solutions in place to break what can become a vicious circle of debt." £30bn or 5% subprime.... but we did not have subprime?!

Posted by confused76 @ 06:16 PM (367 views)
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2 thoughts on “WOW… no subprime here, eh?

  • confused76 says:

    Find more at

    http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/07/04/bcnfsa104.xml

    “This finding comes after recent research from the Institute of Payroll Professionals showed that an increasing number of websites are offering fake payslips, allowing consumers to potentially borrow more money than they can afford to pay back.

    Mr Briault, warned that individuals could face prosecution for lieing about how much they earn.

    “Consumers should not be tempted to inflate their salary, which is a criminal offence,” he said.

    Ray Boulger, a senior manager at John Charcol, an independent mortgage adviser, said: “It was particularly disappointing to note that over 50pc of sub-prime mortgages in the review had been arranged on a self-certified basis, a figure which is way in excess of what would appear in the mainstream market. As the FSA highlighted in the report, inflating income is a criminal offence and while there is no proof, one suspects that this may well have been the case in some, if not many instances.”

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  • japanese uncle says:

    Existence of the British sub-prime mortgage risk has been a broad public knowledge for at least four years, where phenomenal amount of money was lent out based on the false declaration of the borrowers in terms of their annual income and other vital information in assessing the risk. What kind of a ‘watchdog’ is the FSA that seems to have been blind and deaf and illiterate at the most crucial time for a nation’s future course of economic stability?

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