Encumbrance and forbearance

Wookster

Really interesting piece by Peston today.

http://www.bbc.co.uk/news/business-18607088

But there is a problem with forbearance: it undermines the confidence of those who lend to banks. They fear - rightly - that the banks are not as strong as their accounts would indicate.

And a statistic I find quite astonishing:

So, for example, up to 8% of all those with mortgages in Britain are enjoying a holiday on payments, or have changed to paying interest only, or are enjoying some other relaxation of normal lending conditions, according to an analysis by the Financial Services Authority for the Bank of England.

Whoever said that mortgage debt is not responsible for any of the current mess is just simply not correct.

michaels

Strange it is such a surprise to you, we have had 3 or 4 threads on the 8 percent figure and what exactly it is measuring.

purch

Wookster wrote: »

Really interesting piece by Peston today.

I very much doubt it :eek: