Thursday, January 31, 2008
UK home owner at risk
Warning over one million homes at risk
Economic slowdown would leave many borrowers vulnerable, says FSA.
On this occasion we are gonna assume a few details to achieve a percentage of homes at risk.
If out of 60 million people in the UK, 20 million homes are privately owned of which 1 million are at risk.... strike a light we have 1 in 20 homes at risk.
That's a really bad detail and so we must give the banks more ability to print money. lol. Give the banks more money 'cos they need it...
Surely we have a debt system that doesn't work for some and benefits others, address the issue people.
More than a million homeowners could be at risk of serious financial difficulty and possibly losing their homes in an economic slowdown, the City regulator warned yesterday.
The Financial Services Authority is preparing for a tougher climate of rising inflation and a slower economy. It fears that many homeowners with large mortgages who have borrowed three and a half times their salaries or more could be at risk.
The warning comes as surveyors predict today that 123 homes a day will be repossessed this year. The FSA cites three warning signs on mortgages:
· The loan was taken out for longer than 25 years;
· It is worth more than 90% of the home;
· The amount borrowed is 3.5 times or greater than income .