Saturday, August 9, 2008

The banks are only interested in saving themselves. People who borrowed too heavily or who lose their job are thrown out onto the streets.

Mortgage lenders lose patience as repossessions jump

Figures from the Council of Mortgage Lenders show that not only has the number of repossessions in the first half of the year risen by 50pc compared with last year, but the speed with which lenders are seizing properties is at the highest level since comparable records began in 1982. The rise in this "intolerance threshold" indicates the pressure felt by banks to shore up their balance sheets in the face of the sharpest housing slump since the early 1990s.

Posted by mytimeisnigh @ 03:42 PM (1376 views)
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11 thoughts on “The banks are only interested in saving themselves. People who borrowed too heavily or who lose their job are thrown out onto the streets.

  • Exactly what happened in the 90’s. Get the occupants out and get it to auction ASAP in attempt to get some return.

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  • Eternal Sceptic says:

    Are the banks going to get on the BTL bandwagon as well?

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  • last_days_of_disco says:

    The best way of planning to keep whatever wealth you have is to ask the question:

    What would I do if I was a bank trying to get money back from people I have lost confidence in?

    1. Repossess any secured assets and sell them, then go after them for the rest.
    2. Take any savings they have with me, “transferring” them between their accounts (i.e. from you savings account into loans/mortgage accounts).

    Do it automatically and efficiently. i.e. You will be repossessed with all the brutal efficiency that modern computers enable.

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  • As prices sink and typical BTL properties by the most, margin calls on BTL Loans must be just around the corner.

    Banks don’t want to repossess properties without any equity in them.

    Banks will be expecting tenants to start defaulting soon and they know alot of landlords won’t be able to make up shortfalls.

    Landlords on the top of the hit list will be those that have continued onto standard rate after teaser rate has expired. They will have unintentionally signalled to their lender that knowone else will touch them.

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  • There was some debate a while ago, comparing numbers of reposessions now with the early 90s. Any further thoughts as to where we are on the curve?

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  • Banks turfing people out of their homes who borrowed too much…WTF…banks are profit seeking entities, they need to purge theri balance sheets to lend again – it’s the monkeys who bought at extreme multiples of salary who require lobotomies and criticism

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  • But the Gment told the banks to be sympathetic and sensitive ….. . As usual hard figures tell the real truth – it’s all about money.

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  • last_days_of_disco says:

    Computer, please define “sympathetic and sensitive”, error, does not compute…

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  • “Oi-you luv-going cheap,sixteen flats in Darlington. Won’t be here tomorrow. Free pound of jellied eels wiv every purchase. Cmon get em-ya know it makes sense luv.

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  • Gment told the banks to be sympathetic and sensitive? Well the govenment also gave them £50 bln and told them to reduce the lending rate. I don’t see that happening neither. I am pretty sure the bankers generally consider average human beings as a bunch of suckers, but the Gment got to be the mother of all suckers.

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  • Eternal Sceptic says:

    Quote several days ago.’The FSA said lenders needed to ensure that they would treat customers fairly if they did fall behind on a loan……Repossession has to be the last resort’.
    Would be nice to know if the Fairweather Sailors Assosiation has any teeth to enforce it and if so when?

    Meanwhile some lyrics to think on- very prescient
    fair weather sailors, Will leave you stranded on life’s shore.(courtesy Dom Williams lyrics I am sorry I do not know the author)

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