Watch Panorama NOW

Generali

ManAtHome wrote: »

But isn't Brit-land supposed to have (allegedly) a very low exposure to sub-prime? And as for the CML correction eg page 1 "MSE towers in drug-fuelled orgy", much later small print page 42 "sorry, didn't really happen" stuff...

Another triumph for light/no touch "regulation"..?

It depends upon how you define 'subprime'.

If you define it as 'high risk lending', then you need to include:

- Marginal BTL LLs (that is minimal deposit and mortgage payments that he could never meet himself if he can't get a tenant)
- BTL LLs that have circumvented controls by getting residential mortgages for their properties (like my LL - he didn't have the deposit nor the rental cover for the mortgage payments so he got a residential mortgage instead)
- Self-cert (the ones that have lied - we won't know who that is unless they default) and those with previous bad debts.

IMO, the fundamental problem we have had over the past few years is that risk has been systematically under priced. Look at the yields on Iraqi govt bonds for example.

m00m00

it was clear from the programme that the 'victims' featured where not exactly fiscally literate and had been the subject of high pressure door to door selling techniques. Shaz is quite correct in stating that these people need more protection from the sharks rather than just plain witch burning.

mystic_trev

fc123 wrote: »

The council should buy them all up to replenish their stock.

I imagine a lot will be bought up and turned into 'Social Housing'

nobblyned

m00m00 wrote: »

it was clear from the programme that the 'victims' featured where not exactly fiscally literate and had been the subject of high pressure door to door selling techniques. Shaz is quite correct in stating that these people need more protection from the sharks rather than just plain witch burning.

Which is exactly why they were chosen for the program. I have my suspicions that the majority of 'lie-to-buy' were much more complicit than this.

Generali

nobblyned wrote: »

Which is exactly why they were chosen for the program. I have my suspicions that the majority of 'lie-to-buy' were much more complicit than this.

It's the trouble with TV documentaries, you can choose your examples to suit your slant.

A bloke I used to know had a car crash and some of his rehabilitation was the subject of a documentary. What they failed to mention is that he was many times the legal alcohol limit when he crashed and was a notorious and violent drunk.

Melissa177

I thought a lot of the examples were cherry-picked. I thought the most interesting part was the Thamesmead development, which deserved much more airtime than it received. They didn't really focus on the scamsters, but then that wasn't the focus of the program.

There were some rubbish stats in there too - 70% of all repos are with lenders that offer sub-prime mortgages. That isn't the same as "70% of all repos are for sub-prime loans", which was the implication. I actually thought the number of repos in 2006 was very very low - I'd be interested to see the figures for H1 2007 in comparison (are we going up or down?).


And who the hell was that "financial analyst" guy who appeared to be in Singapore? All a bit bizarre really.

Running_Horse

budget_counsellor_shaz wrote: »

These people need protection from these con artists not a condemnation

I agree stupid people need protection. It would be nice to see courts refusing to repossess where lenders have not done any checks. But everyone also has personal responsibility. If they can get a council house, raise children, live independently, and claim all their benefits, then they should understand the implications of taking out a mortgage. Where was the daughter of that couple, and what was her involvement?

dolce_vita

I liked the bit where you had the couple, both on benefits, complaining that they couldn't afford to go to bingo anymore because the mortgage repayments were too high.

Classic.

supersavershal

Yes I agree its a shame they couldnt afford to go to bingo anymore and they had a nice big ashtray on the floor.Do you think they can still afford to smoke and are they on benefits because of smoking related diseases.Im sorry but I feel no sympathy for people who do not fully research the facts about what they are getting into.A mortgage is probably the biggest financial commitment you will undertake I would not go into it with my eyes shut.The brokers have a responsibility but there will always be a sucker ready to fall for some of the more unscrupulous brokers speil.I think you are responsible for your own downfall.Why doesnt the daughter go out and get a job and help to pay the mortgage.

Melissa177

They seemed to have three cars as well - I don't even have one!