Repossessions set to increase as Madoff losses kicks in
Speculation that Santander, the owner of Abbey National and Bradford & Bingley, has losses approaching £2 billion from the Madoff investment fund collapse and suggestions that the likes of Royal Bank of Scotland have lost potentially £400 million have grabbed headlines over the last few days. But who will ultimately pay for these losses?
There is immense speculation in the financial press that housing repossession levels will increase substantially as UK banks look to "box off" any more potential losses in their UK businesses. Despite the government's recent mortgage relief scheme and an agreement for a six-month breathing space before repossession action is taken the landscape has changed over the last few days possibly to the detriment of those in mortgage arrears.
Yet again we see the general consumer set to pay the cost for reckless investments in the past, something which is very much a sign of the times, with billions of pounds of losses to be announced aside from those related to the credit crunch. Consumers are growing very wary of increased banking costs and additional charges and many feel let down by the government's policy which has seen a sector bailed out using taxpayer's money with no visible return as yet.
Share this..
Related stories
Heathrow Terminal 2 set to be bulldozed
When it was opened in 1955, Heathrow Terminal 2 was one of the more modern terminals in the worldwide airline industry although after 316 million check-ins over 54 years it will today close for business awaiting a £1 billion redevelopment. The terminal will be bulldozed awaiting the development of a futuristic style terminus which will need to accommodate passengers and planes using the world's b...
Read MoreAusterity measures key to avoiding double dip recession
A number of fund managers have stepped forward over the last few days to suggest that a lackluster private sector and problems regarding the credit markets in the UK will have an impact upon the short to medium term economic performance. However, many believe it is the pace at which the government pushes through austerity measures which will dictate the future. There is no doubt that the seriou...
Read MoreUK regulators urged to look at mortgage arrear charges
A top panel of lawmakers in UK has suggested that the Financial Services Authority (FSA) should take a long hard look at the UK mortgage market and in particular charges made to those in arrears. There is evidence to suggest that letters to confirm a mortgage holder is in arrears are attracting charges up to £35 and an appointment with a debt counsellor is costing some people in the region of £1...
Read More1.75m homeowners unprepared for mortgage increase
05/03/2015 A UK charity has revealed that 1.75 million UK homeowners will never have faced a rise in the Bank of England (BoE) base rate before, meaning they may be unprepared for a rise in their monthly payments. Analysis from The Money Charity has shown that there has been 1,762,400 first-time buyers since the BoE last increased the UKs base rate, in July 2007. People who received a mortg...
Read MoreAverage age of mortgage applicants lowest in four years
13/05/2014 The average age of people looking to apply for a mortgage fell below 37 years old (36.9) for the first time in almost four years in April 2014. Younger buyers seemed to be unmoved by the effects of the Mortgage Market Review (MMR) which has been designed to tighten mortgage lending regulations. This unwavering demand from young people has come despite the MMR having an overall...
Read More