repossessions fall 24% in 2010 compared to 2009

Batchy

http://www.bbc.co.uk/news/business-12414752

I was trying to tell people that there would be less bargains... this is just highlighting the fact.

Less forced sellers, means less pressure.

Less pressure means Stability.

Granted 2011 could still be a little rocky, but I think 2009 is a long way off now for sentiment.

Thrugelmir

Always worth reading the article thoroughly.

Despite the overall downward trend in repossessions, the CML's figures reveal that there is still a persistent hardcore of borrowers whose finances are not improving.
The number of people with the biggest arrears - 10% or more of their outstanding loan - were the only group whose numbers grew in the last quarter, by 700 to 27,400.

julieq

And 27,400 is a tiny number as a proportion of the number of those with mortgages.

Where is the story exactly?

Thrugelmir

julieq wrote: »

And 27,400 is a tiny number as a proportion of the number of those with mortgages.

Where is the story exactly?

No story. Just an observation.

Batchy

But if there is less pressure to sell... then the factually the article's headline is exactly that... repossessions are down.

Just because people are in arrears, if they have a repayment plan. They will NOT be a repossession.

The banks realise, that kicking people out of their home realises a LOSS for everyone.

So whats the point, if people want to continue living in their home and they make an effort to stay their by continuing some sort of payment, then why kick them out?

10% arrears of outstanding loan... is a huge arrear... it takes a few years to build up 10% it doesnt happen in one month... it would take around 2+ years of NON payments.

Its what the scenario should be... Fair.

chucky

julieq wrote: »

And 27,400 is a tiny number as a proportion of the number of those with mortgages.

Where is the story exactly?

i'm not sure what you're point is Julie...

27,400 is equivalent to 0.11% of home owners - that's a massive amount of homes

i guess it must be the next leg down

Graham_Devon wrote: »

Next leg down is on....and it feels good

Graham_Devon

julieq wrote: »

And 27,400 is a tiny number as a proportion of the number of those with mortgages.

Where is the story exactly?

Story could be that the number in high arrears is still rising, even though BOE interest rates have not changed from their 300 year low.

Suggesting that when base rates do rise, these numbers will also rise quicker than they are doing now.

Don't want the whole argument now over whether I'm cheering on repo's etc. Just making the observation and answering your point.

Loughton_Monkey

julieq wrote: »

Where is the story exactly?

A very good question if I may say so.

As good, honest, tax payers, we pay people like the Bank of England to make decisions and then publicise them. We pay £122 million for 'Ofcom' to regulate the phone industry. And then pay all our MP's to investigate them and issue a report saying they don't do their job.

We pay our mortgage interest, and our mortgage company pays the CML to collate figures and publish them.

And then, as honest license payers, we all pay the BBC to 'scrape up' all this free information (free because we have already paid for it) and re-gurgitate it on their web site. [You can tell the tiny bits of 'original' material (if any) from clues like use of split infinitives from the £45K a year 22-year-old BBC 'researchers']

So the 'story' is really to do with the excellent Social Security System prevalent in this Nanny State Country, as embodied in many of these public institutions.

Thrugelmir

Batchy wrote: »

10% arrears of outstanding loan... is a huge arrear... it takes a few years to build up 10% it doesnt happen in one month... it would take around 2+ years of NON payments.

Precisely. Two years of record low interest rates.

Remember mortgage interest support has now been reduced down from 6.08% to 3.63%.

So fewer people will be profiting from the support.

Batchy

Graham_Devon wrote: »

Story could be that the number in high arrears is still rising, even though BOE interest rates have not changed from their 300 year low.

Suggesting that when base rates do rise, these numbers will also rise quicker than they are doing now.

Don't want the whole argument now over whether I'm cheering on repo's etc. Just making the observation and answering your point.

Which is exactly why they will hold off raising rates for as long as they can, You can say the words, but yet you still dont understand that MERV and co, just arnt willing to push the button.

These articles are there to support NO RATE RISES... not to support them to RAISE RATES!

If we have mass repossessions due to rate rises, etc, etc, etc, as well as many other knock on effects, banks lose more money as revaluations of debt has to be carried out, therefore shares go down (ie before government has a point in which it can sell off its forced investments in banks), pensions continue to lose value, businesses have more pressure to finance pensions effectively etc, etc, etc... its a huge merry go round.

Business/entrepreneurs have a higher cost of finance at a point when private sector needs as much support as it can get!

Is this what you want... Even MORE taxes, Even more Unemployment, Even more homeless... just so you can save another 10% on your house price, yet pay 50% more due to the increased mortgage rates!... Sigh...

OR are you simply a selfish CASH buyer... and want the right moment to make hay while the sun shines!?

Graham_Devon

Batchy wrote: »

Which is exactly why they will hold off raising rates for as long as they can, You can say the words, but yet you still dont understand that MERV and co, just arnt willing to push the button.

These articles are there to support NO RATE RISES... not to support them to RAISE RATES!

So there we have it....you suggest that BOE interest rates are there to save the housing market.

Anyway, they can put them off as long as they want, as economists have said, the longer you put it off, the bigger the problems when you are forced to put them up.