Sunday, May 11, 2008

Mortgage Possession Actions getting to 1991 levels

UK Housing Market Surge In Mortgage Repossession Orders

From 2000 to 2006 the property market could be viewed as benign, prices went up (and up) whilst affordability from a debt servicing point of view increased. This coupled with loose lending standards (125% mortgages, mortgage limits set at multiples of 5 or 6 times gross earnings) encouraged a buying spree. However, when you view the figures of mortgage possession actions in County Courts, you can see the clear "suckers rally" that has now turned sour:

Posted by inthedelhi @ 03:59 PM (682 views)
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2 thoughts on “Mortgage Possession Actions getting to 1991 levels

  • If you borrow 125% at 5 times your income, house prices are dropping quickly and you can’t afford your mortgage payments, what incentive is there to pay the bank anything? You might as well save what you can instead of paying the mortgage and try to save up the deposit and rent money.

    Also to save your credit rating, you can actually hand back your house at the last minute on the understanding that they don’t put anything on your credit rating. It sounds stupid, but it can actually work.

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  • I thought if you hand back the keys its called a voluntary repossession, which is still a repossession, and it will still go on the repossession register held by the CML – and even if you do hand the keys back you will still have to pay the mortgage until the house is sold.. so it says so on here anyway

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