Monday, February 4, 2008
oh dear
How to rescue the UK mortgage market
UK mortgages could become more expensive and harder to obtain unless there is further help for stricken credit markets, an influential government advisor has said. David Miles, chief economist at Morgan Stanley and a Treasury advisor on the mortgage market, says that UK banks need to refinance £250bn worth of mortgage loans that have been financed in wholesale money markets. He argues that if markets remain frozen, the Bank of England - or a special government agency - will need to lend £60bn to £80bn to the banks this year to prevent mortgage finance freezing up.
Posted by tick tock @ 08:37 PM (1154 views)
8 thoughts on “oh dear”
Add a comment
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
paul says:
Just finished seeing the BB1 Panorama. No sympathy for any of the people sucked in I’m afraid. Maybe for the ditzy TV presenter stuck in Thamesmeade (eek).
The only one making any sense was some financial planning geek called Jonathan Davis. Whoever the hell he is.
bystander says:
Agree Paul – but I liked the last sentence from the introductory presenter – ‘some experts predict a 35% drop in the next five years’ – that ones going to stick in peoples minds.
crash bandicoot says:
The girl from Thamesmeade has lost 33% already, but never mind it’ll have recovered in a year or so – yeah right!
uncle chris says:
Shame they haven’t got enough prison places to stick all the developers and solicitors that have committed mortgage fraud over the past few years. It seems that white-collar crime does pay ….. paultry sentences (if any) …. cushy open prisons …. you can see why the more devious out there are quite happy to dupe the unsuspecting idiots with dollar signs in their eyes.
p. doff says:
Liar loans are a USA phenomenon. There is no subprime here. The credit crunch will be gone by April. All is well.
Orwell says:
Crash!
Either you pay us £50 billion plus or the economy (and your election chance) gets it !
Holding Off says:
Great article but when are they going to realise the only way to deal with the situation is to allow the reposessions to happen and buyers to fall away, prices will then drop accordingly and the money on the sidelines can come in and buy at real prices. Dragging this out will undermine the pound and cause inflation to rocket.
japanese uncle says:
House market boosted according to the market force and is now collapsing according to the market force. Why do the authorities need to interfere?
House buyers for the past 5-6 years did silly and risky gamble according to their own will. Still are they allowed to say, I want the casino to pay me my winning if I win my bet, but when I lose I want to cancel all the arrangement as if none existed from the beginning.
Some capitalism, isn’t it?