Mortgage Arrears

nembot

Tiz good news for many people, undoubtably due to historically low interest rates - these need to rise, but the repercussions would be disasterous.

Bit of a pickle if you ask me.

chucky

Thrugelmir wrote: »

This applies to Building Societies not banks or other financial institutions. So does not include HBOS or B&B or NR or Lehmans or GMAC for example. So is misleading as many building societies maintained quality lending during the boom.

do you mean 'quality lending' like the Chelsea, West Browmwich or even Skipton building societies did? :rolleyes:

that's just 3 - there are plenty more... each and everyone of them has a massive bad debt ratio.

it contradicts what you're saying here

Thrugelmir wrote: »

Dunfermline Building Society has been bailed out by the Nationwide since then.

why can't people grasp the fact that less repossessions and people paying back arrears are a good thing. why can't people be happy with this??

the_ash_and_the_oak

chucky wrote: »

why can't people grasp the fact that less repossessions and people paying back arrears are a good thing. why can't people be happy with this??

agree, but underneath a more basic "wanting prices to fall/rise" perspective I think the current situation is leads to a split here is between those wanting to stay where they are and those hoping to move/buy/sell (with the former happier about things than the latter).

penguine

the_ash_and_the_oak wrote: »

agree, but underneath a more basic "wanting prices to fall/rise" perspective I think the current situation is leads to a split here is between those wanting to stay where they are and those hoping to move/buy/sell (with the former happier about things than the latter).

I'd like house prices to fall further by the time we're ready to buy (in the next year or so). But I'm not really keen to see repossessions rise -- I don't think it would be good for society or for banks' balance sheets -- and I don't personally want to buy a repo either.

So, can we have falling house prices without high numbers of repossessions?

Conrad

What became of the bear repo feeding frenzy then? No doubt they will now cling to unemployment figures, but that's another false dawn for sure.

Thrugelmir

Conrad wrote: »

What became of the bear repo feeding frenzy then? No doubt they will now cling to unemployment figures, but that's another false dawn for sure.

No one wants mass repossessions. That would send both property and financial markets into freefall. The "mortgage" banks aren't out of intensive care yet by any means.

IveSeenTheLight

penguine wrote: »

I'd like house prices to fall further by the time we're ready to buy (in the next year or so). But I'm not really keen to see repossessions rise -- I don't think it would be good for society or for banks' balance sheets -- and I don't personally want to buy a repo either.

So, can we have falling house prices without high numbers of repossessions?

Aw, you ask so nicely, it's almost worth saying yes to.
Much better than the demanding type usually seen.

You could be quite fortunate if you are looking to buy next year. Many are predicting falls over the winter (by 8-9% on average) before the market turns again in spring / summer.

We might know a bit better in a years time how the economy and indeed house prices are likely to continue, be it further falls again over the winter, stagnation or the start of increasing prices.

Good luck when you make the move

nearlynew

HPI cheerleaders keep reminding us that home ownership is not for everybody and that not everyone can afford to buy their own home.

Isn't repossession just a manifestation of this ?

It is probably only through cheap and easy credit that these people would have been able to buy in the first place.
Now that has been removed.................

mortgagemole2009

Thrugelmir wrote: »

This applies to Building Societies not banks or other financial institutions. So does not include HBOS or B&B or NR or Lehmans or GMAC for example. So is misleading as many building societies maintained quality lending during the boom.

Actually the research was based on all lenders not just building society customers. The only part specifically related to building societies was the part about lenders views. - I know this for sure as I was involved in developing the research.

the_ash_and_the_oak

penguine wrote: »

I'd like house prices to fall further by the time we're ready to buy (in the next year or so). But I'm not really keen to see repossessions rise -- I don't think it would be good for society or for banks' balance sheets -- and I don't personally want to buy a repo either.

So, can we have falling house prices without high numbers of repossessions?

I think this is what will happen imo. Prices dropping not because of the problems of owners - but because of the problems of buyers - but that is necessarily a far slower process