Quote:
Originally Posted by Rachel_Heath
Many people may be selling for the simple reason that they cannot afford the mortgage payments any longer, along with paying off all the other debt they've accrued over the last few years.
Despite Mr. Browns protestations to the contrary, I think the UK property market is just as vulnerable to a meltdown as it has been over here - if not more so. At least in the US 15 or 30 year fixed rate mortgages are relatively common and provide a nice measure of protection. Many of the folks here who are either foreclosing or short-selling have been hit either by an increase in the adjustable rates of their ARM or because they used all the equity in the property to pay off credit cards or buy toys.
Given that the UK on average has seen house prices rise far faster than over here (although granted there have been some hotspots in the US) it's not surprising to me that the cracks are now starting to show in the market.
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Most of the walkaways or foreclosures have little or nothing to do do with increased mortgage interest rates in the great US of A .some of it has to do with greed and some to do with financial stupidity .With a mortgage readily available with(often)no down payment or no accountability in regard to the morgagee or thier true income , something had to happen , well it has and the banks are now crying "Mr government , please help us " Let iot be a lesson to all and sundry .