The number of homes that were repossessed during the three months to the end of June have soared by 71% compared with a year earlier. The Financial Services Authority said 11,054 homes were repossessed in the three months to the end of June, compared with just 6,476 during the same three months of 2007. Okay, just a few more figures to set the scene.
This number is growing, and I can tell you whom is to blame. Not the mortgagee that's for sure. There are some people out there that manage their money badly and as such they fall behind with the repayments they should never, ever default on.
We are talking about good, honest, hardworking people whom own their own homes, and a considerable amount 'buy to let' investors that are now deeply in debt to the mortgage lenders because their fixed rate mortgage has come to an end and now find themselves on a ridiculous rate of interest, with the mortgage lenders refusing to listen to sense and re-negotiate a deal that works for both them and the mortgagee. Landlords that were servicing their mortgage with the rent, or maybe topping up a little have been slapped with additional payments of anywhere between £400 and £800 a month on top of what they were paying before. The bank of England has dropped rates again, but the lenders refuse to pass it on, Northern Rock being the worse culprit and they are state owned!!
Are mortgagee's going to keep up? How can they? And re-mortgaging to another lender is out of the question as property prices have dropped and there isn't enough equity there. So home owners and 'buy to let' investors are faced with only one option. An option they don't want. Repossession.
Why are the mortgage lenders taking this approach baring in mind that the sales market is practically dead? How to they intend to recover their liability when banks wont lend new money at a good rate unless you have at least 20%? The repossessed property isn't going to sell in this market unless you are giving it away. So the loss would appear to be greater for the lender than having them re-negotiate a new deal. So, whats best? Retain a property and more importantly a steady monthly income from the mortgagee at an acceptable interest rate? or go for repossession, have the property sitting empty because it wont sell or will sell but for less than the mortgage liability?
Retain the property and mortgagee of course. So the question again. Why are the banks repossessing? My thinking is that they have posted their losses to the City and Shareholders and have written the liability off. Therefore, what does it matter. If I am right it's a tragedy, else the mortgagee's are dealing with staff in call centres whom are more interested in what they are having for lunch than actually questioning why the computer say no......
2 comments:
I have been reading yoru blogs recently because I was attracted by what I saw as your estate policies. At first I blogs were just another PR stunt to divert the publics attention to the real heartless issues often associated to estate agents. But As i read more, I could feel a revelation from a genuine individual with a humna soul, far from the disgusting attributes of the city estate agent. I think I am at least proud to have discovered that not every estate agent is happy at the frustrating suffering experience that morgagees and tenants do experience.
I agree with your recent analysis on epossessions but I fear even the government's intervention today with the water legislation wont reverse the situation. The credit crunh to me has always been a big political scam that went a bit out of hand - a perfect opportunity for the government to bail out thier rich friends using the tax payers money without the tax payer bulging ; under the auspices of 'oh, they are nmerely using a darastic intervention toarrest a drastic situation' rubissh. The Bristih public, in my opinion, and I mean no rudeness, is the saddest bunch of sorry politically maneuvred people I have ever seen in my life. Democracy? What democracy? My rants have gone beyong signing after one distressing new item on Tv to another, to actually taking it pesonal. Its a shame! I hate to discover that I am slowly developing a hatred for the institutions! Do they help the common every day man? No!
Look at the tubes. Packed like hell. Do they care? No! Taxes here and there! I wont be suprised if tomorrow we wake up and tehre is a new tax on the air we breathe under the guise of environmental protection drive 0r CO2 emission control. The Tv is used as a forum to insult the less fortunate. Trick people out of ridiculous amount of all sorts. Racism in some quaters is simply brushed under the carpet. Class issues have stifled social intergration. laws meant to protect the people are simply misused by the rich, politically powerful. Can anyone beleive that tehre are people who cant afford a decent meal a day living in the UK? The supposedly first world? And ther are the masters who sek to protect the image by sieving these unfortunate people to the background. And ter eare teh ridiculous charities. with bad charactered-leaders using thet all assuming humble name of charity to reap the public. '10% of all calls will be donated t o charity' has become the lastest TV accronym for eeach and every other useless thoughless same format reality TV show! |Why would anyone doubt if the Britons are leaving thier wnon country. |Can one even own a home?? All the homes that people are working thier last to clear a mrotgage on, they will not even own it. To pass it to yoru children, the government will tax you ludicrous sums as inheritance tax. You get too old and get taken to the care home, your house is sold and the money given to the care home. so what is the point buying a house actually. Poeple who dont work make mor emoney and love better off benefits than hard working people. what is the point working really? This is sickening. The saddest thing is every one of us takes it like , as we say, the civilised poeple should - with just a little shrug of the shoulder and maybe a sigh. But that s it. Tax is up. Trasport is up. fukle is up. Supermarkets drill us throuhg fake over prized goods with deliberate worng labelling! We are just choking in a teribnle terrible mess. Its suicidal really! What is the point living in this kind of society!??
Thanks for your words! I hope I can keep it interesting! Paul
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