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US in a little hot water
Dan_Collins_2
Posts: 1,377 Forumite
I have just been looking onlone, we all know the US are having problems with housing prices etc.
Lets just be glad we are not in this position!
http://news.bbc.co.uk/1/hi/business/7078492.stm
Lets just be glad we are not in this position!
http://news.bbc.co.uk/1/hi/business/7078492.stm
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Comments
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Dan_Collins wrote: »I have just been looking onlone, we all know the US are having problems with housing prices etc.
Lets just be glad we are not in this position!
http://news.bbc.co.uk/1/hi/business/7078492.stm
.........................................Yet!0 -
Everything to date that has happened in the US housing market has happened here but with a time delay.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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I dont think we will be seeing whole streets or estates being repo'd, i do believe we will see a slump, but I really cant see things going that bad!
Lets stat positive!
We all have jobs, well most, jobs are out there to be had and rates are not actually that high!0 -
Everything to date that has happened in the US housing market has happened here but with a time delay.
The other way round surely? The US problem at the moment looks very similar to what happened here in the early 90s - very rapid large rises in interest rates hitting poor people with variable rate mortgages.
Most prime borrowers in the US have 25 year fixed rate repayment mortgages - it's not a sophisticated market at all, so the ones on the variable-rate mortgages are sub prime and thus much more likely to get into trouble anyway.
Here, prime borrowers have many years of experience in handling variable rate mortgages and the market is much more competitive, with banks much smarter in managing problems ( you can see how many repos are called off when they do deals at the door of the court).
British banks behaved like US banks 15 years ago and learnt from the experience.Plus interest rates appear to have peaked and anyway weren't racheted up anything like as high as last time.So we should be in line for a pause, rather than a crash, to allow salaries and rental yields to catch up with prices.Trying to keep it simple...
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