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As the rumours about a possible summer 2009 election continue to circulate throughout Parliament there is speculation that a rogue element within the Labour Party is trying to force the hand of...
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Wednesday 30th July 2008
When the leading credit ratings agency, Standard and Poors, suggest that UK house prices still have some way to fall it really is time to sit up and listen. Standard and Poors suggest that the UK market still has a further 17% to fall before it can start to rebuild again, a figure which will see 1 in 7 home owners move into negative equity – a figure of 1.7 million home owners in total!
The news is a bitter blow to not only the housing market but to the banks which will see the assets backing their mortgage loans fall lower than the amount outstanding, increasing the risk of defaults and fire sales in the case of repossession. The Standard and Poors agency has forecast that the current turmoil will continue well into 2009 and see more house builders and mortgage companies suffer as a consequence.
While we recently had some good news on the trend for mortgage rates, with a number of prominent groups moving their rates lower, it seems there is substantially more pain to come for the sector. Trying to figure out the bottom of the market has become an impossible game for even the experts with each and everyone having a different opinion. |
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