The Great Mortgage Fiasco!

It has been reported that UK house prices have fallen by 15% in the last year, and that if the trend continues five million homebuyers face negative equity. That is what happens when the value of their homes is less than the outstanding mortgage. It is a trend that might further depress the market, because people who were intending to move house for whatever reason, will tend to stay put in the hope that the situation will improve.

It seems that every day bigger and bigger losses are being reported by UK major banks heavily committed to the great mortgage fiasco on both sides of the Atlantic. It has constantly been suggested that the blame is mostly to do with the North American sub prime mortgage market. But who forced UK banks to get involved with what was happening the other side of the pond? In any event these captains of finance do not seem to have done too well on the home front either. It almost seems that they were recklessly trying to outdo what was happening over there.

Please Click Here to visit the Free Mortgage Advice Web Site.

The media are constantly reporting, about increasing billions that have been lost by banks that could have been managed better by Punch and Judy. Some of the biggest names in banking have been on UK television apologizing for their ruinous policies. However, the latest scandal is that some of those responsible are to profit immensely for virtually breaking the banks. Lifetime pensions of around £700,000, equating to about a million dollars, seem to have been secured by some of these sorry men!

These momentous events are coming at a time when so many non-bankers, sometimes known as ordinary decent working people, are losing their jobs and wondering whether they will be able to afford to stay in their homes. They quite rightly wonder what on earth is going on and where will it all end? There is no wonder that confidence is at rock bottom.

Please Click Here to visit the Free Mortgage Advice Web Site.

Some British banks that have been reluctant to continue lending in the present climate have been cajoled into doing so, on the back of a massive injection of taxpayer's money. However, the housing downturn continues and the best advice to first time buyers is probably to wait and see. People who need to move, and who have little or no outstanding mortgage, may have to sell their property for less. But when they move they will buy for less and to some extent things may balance out.

For those who really know what they are doing there may be some bargain properties and bargain mortgages available. But the old adage, 'let the buyer beware', has never been so applicable.

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