UK - Repossession orders climb by 17%

[Aindriu]

The number of homeowners facing repossession orders after failing to keep up with mortgage payments is up, says the Ministry of Justice.

It says the number of orders made by the courts in England and Wales at an early stage of the repossession process rose 17% in the first quarter of 2008.

There were 27,530 orders made, up from 23,438 in the same period of 2007.

The credit crunch has led to more expensive repayments for new mortgages and a cut in the availability of deals.

Full story here. How long do posters think it will be before lenders here face the same?

[Squire Allworthy]

It is probably peaking in the UK; interest rates are moving down there and stability is starting to return to the banking sector. Here it really depends on interest rates. In both countries much also depends on employment levels.

[odie1kanobe]

Its defintely not peaking in the UK its getting worse.

Many people were selling off their property with little or no equity but housing market has slowed so much that the avenue is closed off,

In addition the subprime lenders have lots of loans o/s and they are increasing their rates not reducing them.

BOE interest drop has made little difference as before and after the last rate decrease there were many lenders increasing mortgage rates.

[Aindriu]

In the north they are up 30% - see here.

[Sidewinder]

The differing speeds of crash is very interesting. In the north, the market peaked and stalled just last year, around June 2007. And has already corrected significantly, and Ulster Bank are expecting a further 25% drop within the next 12 months. Same in Britain. But in Ireland, 2 years after the peak and stall, the amount of delusion and wishful thinking and wall-to-wall VI spin is just as prevalent as ever and prices have barely begun to move.

This makes me think we are most likely in for a Japan-style long, slow, painful correction. Which is the worst possible scenario. It's far, far, far better to take these things on the chin, get it over with, learn the right lessons and move on. But in the Republic, the VIs will keep on lying and spoofing all the way down, and in 10 years time they'll still be lying and spoofing.

People in the north are every bit as property-obsessed as people in the south, but the correction here is happening swiftly while the south drags the arse out of it. Dissecting the reasons why should be interesting...

[odie1kanobe]

The differing speeds of crash is very interesting. In the north, the market peaked and stalled just last year, around June 2007. And has already corrected significantly, and Ulster Bank are expecting a further 25% drop within the next 12 months. Same in Britain. But in Ireland, 2 years after the peak and stall, the amount of delusion and wishful thinking and wall-to-wall VI spin is just as prevalent as ever and prices have barely begun to move.

This makes me think we are most likely in for a Japan-style long, slow, painful correction. Which is the worst possible scenario. It's far, far, far better to take these things on the chin, get it over with, learn the right lessons and move on. But in the Republic, the VIs will keep on lying and spoofing all the way down, and in 10 years time they'll still be lying and spoofing.

People in the north are every bit as property-obsessed as people in the south, but the correction here is happening swiftly while the south drags the arse out of it. Dissecting the reasons why should be interesting...

UK will not drop by 25%, in most cases its not main mortgage thats causing a problem unless its with a sub prime lender its the additional secured loans where interest rate started at 6% and is now 12%.

[Centurian]

And property prices in the UK are cheap compared to in the Rip Off Republic....

[Sidewinder]

UK will not drop by 25%, in most cases its not main mortgage thats causing a problem unless its with a sub prime lender its the additional secured loans where interest rate started at 6% and is now 12%.

Go tell it to Ulster Bank and the BBC....

As for "sub prime", anything with an original LTV over 90%, over more than 30 years, on stupid income multiples, is "sub prime".

[odie1kanobe]

And property prices in the UK are cheap compared to in the Rip Off Republic....

Depends as in London and the South East a 3 bed family home is £250-300k in an average area.

Course go north and easy to get a 3 bed for £65-70k

[odie1kanobe]

UK will not drop by 25%, in most cases its not main mortgage thats causing a problem unless its with a sub prime lender its the additional secured loans where interest rate started at 6% and is now 12%.

Go tell it to Ulster Bank and the BBC....

As for "sub prime", anything with an original LTV over 90%, over more than 30 years, on stupid income multiples, is "sub prime".

NI prices might but market is different from rest of UK.

Issue with repos is on 2 basis 1.) the BTL who over paid - thats a risk 2.) the homeowner.

On No 2 the LTV on 1st Charge mortgage is generally low unless they have taken out equity with remortgage, its the second and 3rd charges thats the cause. In a lot of cases these are people who bought council house at big discount and then saw their house jump in value and decided well I'm rich because house is worth more so will remortgage or call up one of those TV ads.Borrow to have the nice holiday that I deserve, the nice car that I deserve, that Plasma TV I deserve etc etc
without realising that it all needs paying back and as interest rates on these jump very quickly then the income just doesn't support it.

Lots of buyers at below market value in UK who will pay up to 80% of the value and rent it back to stave off reposession. People think they being ripped off BUT when a house hits an auction 80% of market value is being generous over last 6 months.