Tuesday, March 18, 2008

Bear Stearns’ collapse means you can’t get a mortgage

Why Bear Stearns' collapse means you can't get a mortgage

The collapse of Bear Stearns had a predictable impact on stock markets across the world yesterday. But few suffered as badly as the UK market - British banks took a pounding once again. The Bank of England auctioned off £5bn of short-term loans yesterday, but banks requested almost five times that amount. The move came as the inter-bank lending rate spiked up to 5.59%, in the largest rise in three months. Meanwhile, mortgage rate increases and product withdrawals make a mockery of all the feeble articles being printed in the weekend property supplements about ‘a spring recovery’ in the property market. Banks in the UK are already suffering. What will happen when the UK housing crash gets fully underway?

Posted by damien @ 10:54 AM (1453 views)
Please complete the required fields.



6 thoughts on “Bear Stearns’ collapse means you can’t get a mortgage

  • mark wadsworth says:

    “What will happen when the UK housing crash gets fully underway?”

    Er …. house prices will go down?

    Reply
    Please complete the required fields.



  • Caravan prices will rocket.

    Reply
    Please complete the required fields.



  • Landedgentry says:

    Most BTL’s will end up in caravans.

    Reply
    Please complete the required fields.



  • Landedgentry says:

    titaniccaptain…. thats ok bwoy!! LOL

    Reply
    Please complete the required fields.



  • Greytornado says:

    Much of the problem seems to be caused by a failure to regulate the mortgage market, property, (which is just a comodity) is very over valued, lenders have thrown caution to the wind and millions have used paper values to raid their paper equity and use their houses like piggy banks. Most problems in life are usually solved by tackling the cause. Reducing interest rates might make life easier for Brown & Co (who are acting like Labour Governments usually do and borrowing on a reckless scale), but that will do nothing to solve this crisis, because it wasn’t caused by high interest rates in the first place. Part of the cure is a drastic re-valuation of the housing stock of the UK – probably downwards by about a third, – the pain yet to come is huge. The effects will be seismic for the millions affected, and it will probably wipe out the Labour Party for a quarter of a century. This viewpoint may seem extreme, but I can’t see how it cannot happen.

    Reply
    Please complete the required fields.



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

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>