It looks like Vince Cable, Shadow Chancellor of the British Liberal Democrat Party, was right when he said that many people in the UK, would soon face negative equity.
The last similar crisis in the UK was in the years 1990-93, and Mr Cable is not the only significant authority to issue warnings on negative equity reaching similar if not worse proportions.
Mr Cable was quick to emphasize, that most people experience negative equity in a purely theoretical sense, because they don't have to move, and can sustain their payments. However, he went on to say that as much assistance as possible must be provided to homeowners with severe mortgage problems. The Lib Dem Shadow Chancellor has become a highly respected authority since he stood in as leader before Nick Clegg was elected, during December 2007.
The ratings agency, Standard and Poor's has suggested that if the current fall in house prices continues at the current rate, the number of people affected could be 1.7 million by mid 2009. That is higher than it was in 1990-93, and the situation could become much worse, if gloomier forecasts prove to be correct.
The Council of Mortgage Lenders has urged homeowners to bear in mind that negative equity only becomes a problem if you have to move. However, with unprecedented increases in energy prices, and other basic commodities such as food, and petrol at the pumps, many people are becoming increasingly worried.
In the USA, President George Bush has sanctioned measures to assist homeowners struggling to pay their mortgages. There has been some talk of similar measures being adapted in the UK, where Parliament has now adjourned for the summer recess.
If you require further information concerning mortgages,Please Click Here to visit the Free Mortgage Advice Web Site.
Tags:
free on line mortgage advice
free online mortgage advice
No comments:
Post a Comment