Home Repossessions Soar 17% In Last 12 Months
In a move which is very similar to that seen prior to the crash in US sub-prime mortgage market, it has been announced that year on year home repossessions have risen by 17%. This is based upon the number of applications made to the courts by mortgage lenders and it looks set to get worse before it gets better. However, there are many more worrying tones under the surface which will have the Treasury monitoring the situation carefully.
Figures released by the British Bankers Association also show that over 20% of the so called sub-prime borrowers in the UK were at least 30 days behind with their mortgage payments, with 10% more than 90 days in arrears. These bear very chilling similarities to the US situation which has brought the world economy to its knees.
There are now major concerns in the industry that the threat of inflation, and inability to reduce interest rates, will push thousands more home owners into serious financial difficulties. While the UK and the rest of the world suffered from the US fallout is seems that the UK is set for a serious chapter of its own. Can we really see things get any worse?
Share this..
Related stories
Petrol credit card scam linked to Tamil rebels
UK motorists have become the target of a credit card scam that allegedly funds Tamil rebel groups in Sri Lanka.In the scam, customers' card details are obtained when the card is used to pay at petrol stations. Money is then transferred from accounts to other accounts around the world.Detective Inspector Paul Welton, whose Humberside region is one of those believed to have been caught up in the fra...
Read MoreInterest Rates Are Stuck At 5%
Today has been a disaster for the UK economy, the government, the Bank of England and above all the UK consumer. As inflation bounds ahead to a frightening 4.4% the likelihood of interest rates falling in the short term is as remote as it ever has been. A fall in interest rates would assist the economy but fuel inflation, but a rise in rates would combat inflation but kill the economy.
Will OPEC ask for help?
As the oil price continues to fall OPEC is in the process of arranging an emergency meeting with members. The price has now fallen to below $55 a barrel and many in the industry are very concerned about the short-term outlook. What a strange turnaround in that only a few months ago western governments were asking OPEC to increase oil output so the price could drift back from a high old $150.
...
UK regulator refuses to disclose stress test results
In direct contradiction to the situation in America, where the majority of bank stress test results have been announced to the public, the UK regulator has refused to do likewise. Overseen by the government, the Treasury has refused point blank to reveal the results because of significant concerns it would cause undue uncertainty in the market.
This is very much a chicken and egg si...
European Union officials demand more cuts from the Greek government
In what is fast becoming something of a stalemate between the European Union and the Greek authorities, today we saw a number of prominent EU officials step forward with a suggestion that the Greek authorities need to introduce more budget cuts in the short term. This call comes despite a planned nationwide strike by various public and private sector workers who are concerned that their employment...
Read More