Sharp rise in overdue mortgage payments

obsessed_saver

Pobby wrote: »

Can someone tell me why the lending houses have been so careless to lend money to people who clearly are not going to be able to repay?

Greed?

I guess even the banks think that prices can only go up, so if they have to repossess, they'll make some money too. :rolleyes:

Actually, that's nonsense. The banks are able to offload the risk in the Special Investment Vehicles or something like that. They sell these off to pension funds, other banks, etc. So they've got more money to loan to people. The bubble has pop though.

Lotus-eater

obsessed_saver wrote: »

Greed?

I guess even the banks think that prices can only go up, so if they have to repossess, they'll make some money too. :rolleyes:

The banks thought that prices could only go up.

I'm just amazed at the sheep qualities of the lenders, full out lend madness, to, uh oh, whats this? Sharp turnaround. Did no one high in these companies see it coming?

Pobby

Ok that is probally right regarding house prices. Now what about unsecured debt?

RecoveringAlcoholic

The party is over for the

LIE-TO-BUY

mortgage borrowers.

Lotus-eater

Pobby wrote: »

Ok that is probally right regarding house prices. Now what about unsecured debt?

I'm still getting plenty of credit card offers through the door

Paul_N_4

RecoveringAlcoholic wrote: »

The party is over for the

LIE-TO-BUY

mortgage borrowers.

Sky had a very good bit on liar loans this morning. For a sneak peek into how easy it is for someone to grab a mortgage, even when repayments took up over 90% of your take home pay, watch this video:

http://video.news.sky.com/skynews/video/?&videoSourceID=1317242&flashURL=/feeds/skynews/latest/flash/mortgages_270508_0900.flv

jamescredmond

Pobby wrote: »

I am just amazed that it has already got to this. Speaking to once ,very high earning , US mortgage broker I asked her how many lie-to-buy clients she had got mortgages for. In her opinion all of them massaged their incomes!

Can someone tell me why the lending houses have been so careless to lend money to people who clearly are not going to be able to repay?

'fraid I can't.

but tell you what: let's have a little guess as to exactly what has happened in the market these past few years.

did the people of power/influence lose their collective judgement in the europhia of the 'buy,buy,buy' years?

or did they view the market with the usual cynicism, manipulate it and have now departed with their pockets stuffed with humongous bunuses?

all the time knowing that the clock was ticking towards a downturn and that - if money was to be made - they had to act pdq?

these people aren't stupid. some may have got carried away but my guess is that the serious players were well aware of the situation being created. they knew that it would only take 1 bit-player to tip the balance but they calculated to screw the market for every last penny for as long as they could.by the time of the NR debacle these kiddies had long gone.

their reputations for sound financial judgement may well now be tarnished, but the mouth-watering 7 figure bonuses are comfy compensation.

as with much in the market ,timing is everything. and these reptiles timed it to perfection.

and who knows - when the market eventually picks up they'll probably be back and on the lookout for yet another 'opening'.

tomstickland

!!!!!!? wrote: »

The police of course are on top of the protesters like a ton of bricks because this is just the very, very early beginnings of what is going to be a period of discontent amongst the public.

I must go and research what exactly they did to the law after the last fuel protests. No doubt they'd like to outlaw holding an opinion that differs from "those who know better than us".

tomstickland

http://video.news.sky.com/skynews/video/?&videoSourceID=1317242&flashURL=/feeds/skynews/latest/flash/mortgages_270508_0900.flv

Looks like lie to buy is still alive and well then.

Lotus-eater

It was on Five news tonight about dodgy mortgage brokers selling mortgages they knew the people they sold it to couldn't afford it.

http://news.five.tv/news.php?news=527