48% increase in house repossessions!!!

shadowdragon

Just been on the news theres a big increase in house reposessions!!!! Its not good news :shocked:

k2nga

I have just read this no not good news but not a surprise really either.

tigerfeet2006

Just read this on the BBC news site.Not good news but not surprising.

http://news.bbc.co.uk/1/hi/business/7548877.stm

shadowdragon

tigerfeet2006 wrote: »

Just read this on the BBC news site.Not good news but not surprising.

http://news.bbc.co.uk/1/hi/business/7548877.stm

Noticed they mangaged to get Northern Rock in there!!!!!

One thing I wonder is how many of these are those who jumped on the Buy to Let bandwagon? I belive the Buy to let market didnt help inflate house prices somewhat.

tigerfeet2006

Yep! good ol' Northern Rock. They seem to the lender that rears it's ugly head on here the most I notice.

I expect that the BTL people are going to feel the credit crunch a lot

LilyBart

Perhaps those that did BTL early on and aren't overstretched will now be providing homes for those whose homes are being repossessed. I was startled by that figure, though less so than by the drop in personal insolvencies this quarter. What I can't work out is what effect all these repossessions will have on the rental market. I've read analyses saying rents will rise and others saying rents will drop.

Merry_Gentry

I was hoping rental prices would drop, with people unable to sell so wanting the money from renting, but I guess they still have to cover their mortgage costs so who knows?!

LilyBart

Hi Merry,
I think rentals are dropping - at least the stupidly priced rentals are - and gosh it's a relief to be locked in to a fixed monthly sum for a year instead of being at the mercy of the changing interest rates. But if the interest rates go up again, then surely the rentals will too? So difficult to say. Wrong thread, I know, but very sorry to read your news. Hope things are settling down for you now.
Lily x

shadowdragon

Merry_Gentry wrote: »

I was hoping rental prices would drop, with people unable to sell so wanting the money from renting, but I guess they still have to cover their mortgage costs so who knows?!

Personally I dont think rental prices can rise too much as it people just wont pay them, I know a month or two on these boards there was someone with a good number of Buy to let propertys (and each one was mortgaged too!!) and the rental prices were not paying the mortgages due to interest rate rises (think they were considering bc with mortgage debts of 5.5million if i remember correctly).

SuziQ

It seems such a pity when homes are repossessed and it costs a fortune to rehouse a family in b& b etc when a little bit of help may have avoided repossession. I am having trouble coping with my mortgage,but at £600 a month it's actually much lower than rent would be for even a much smaller house in this area (greater London.) Abbey would probably be happy to reposess as there's a fair wack of equity in the house but I am unable to just sell as my ex forged my sig and took out a £25,000 loan on the house for his company. I could wll end up being reposessed. I can't understand why people like me can't be given help with a mortgage with the proviso being the council/govt are repaid on sale of the house etc. Of course with the markt being glutted with repo houses that will make equity such as mine less. One of my friends develops houses with a friend for a job,and she says a lot of houses are just not selling at auction t the moment.

SuziQ

shadowdragon wrote: »

I know a month or two on these boards there was someone with a good number of Buy to let propertys (and each one was mortgaged too!!) and the rental prices were not paying the mortgages due to interest rate rises (think they were considering bc with mortgage debts of 5.5million if i remember correctly).

I remember that post and wondered what they decided to do!