Only a Minority are Repossessed

SquatNow

thwe thing with the last crash was repos were limited as wage inflation was high, reducing payments vs wages, and interest rates were plummeting reducing actual repayments, so fewer people really struggled to make payments unless they lost their job, in which case the government paid their interest or their "lose your job" insurance paid.

None of those things will help this time.

Also, note that prices are twice as high vs wages than at the start of the las crash.
So if houses drop by 50% they will still be as hgh vs wages as at the peak of the last boom.

dopester

pickledpink wrote: »

Most people are actually OK

Things have only just begun PP.

Your joyful happy optimism will be tested in the coming months and years.

According to separate figures issued by the Financial Services Authority, the number of people who missed three or more mortgage payments doubled in the first three months of this year to 300,000, which suggests that many more homeowners could be at risk of repossession.

Also, how many people do I know, including people in their mid-40s and 50s, who bought a second place (or more) in the last few years? Many.

Perhaps my experience in knowing these types does not reflect any national trend, but they are people who would have been right on target to pay off their own mortgage, have now leveraged themselves with another property as a landlord, on the dream perpetual HPI ticket.

Mix in mortgage resets (payment shock), rents not covering mortgage, employment uncertainty (not just for their tenants), and all round rising costs everywhere.

I'm not sure we had as many home-owners who'd leveraged their futures to property in a bubble as we entered the last crash. In some instances I fear they will not only lose their 2nd home (BTL) but also their main home that was used as security or which the lenders seek to recover their monies with.

Today's greed generation only gave thought to their own expected wealth, with some saying "It would be naive to think won't be 50% higher in the next 10 years, and that I think would be moderate growth", and thus why we've had a ludicrous HPI paradigm. So sad if these people lose everything.