NEARLY 45,000 PEOPLE WILL LOSE HOME IN 2008

[SEGMeNT]

Quote:NEARLY 45,000 PEOPLE WILL LOSE HOME IN 2008, SURVEYORS WARN

Wednesday January 30,2008
By Julia White for express.co.uk


It is harder than ever for first-time buyers



AROUND 123 homes will be repossessed every day during 2008 as people struggle to keep up with their mortgage repayments.

The Royal Institution of Chartered Surveyors (RICS) said just under 45,000 people would lose their home during the year as the cost of servicing a mortgage remains close to record levels.

The figure is in line with estimates from the Council of Mortgage Lenders, which also expects 45,000 homes to be taken over by lenders, while City watchdog the Financial Services Authority said yesterday that 840,000 mortgages were a “cause for concern” because of their riskier lending characteristics.

At the same time RICS said the cost of getting on to the property ladder was now 351 per cent more expensive than at its most accessible point in 1996.

It said a first-time buyer couple who were both on the bottom 25 per cent of earnings, bringing in £26,595 a year after tax, would now have to save the equivalent of 104 per cent of their joint annual take-home pay, or £27,729, in order to afford the deposit, fees and stamp duty they would have to pay to buy a typical home.

It said this was well up on the 23% of annual earnings the same couple would have needed to save in 1996.

It blamed the worsening affordability during the fourth quarter of 2007 on a combination of the slight reductions in the loan-to-value ratios that lenders were prepared to offer first-time buyers, as well as the continued burden of stamp duty and the costs associated with buying a home.

The group said once a couple with this level of earnings had got on to the property ladder, they would have to spend around 40.3 per cent of their combined take-home pay on their mortgage.


It said the figure, which was down slightly from the third quarter of 2007, was still close to the record of 47.8% reached in 1990.

London is still the most difficult place for people on low earnings to get on to the property ladder, with people trying to buy a home in London, the South East and South West needing to save more than a year’s take-home pay in order to buy their own home.

First-time buyers on low earnings in London are also likely to have to spend 51% of their take-home pay on their mortgage, compared with only 29% for people in the North East.

RICS senior economist David Stubbs said: “At the start of 2008, first-time buyers are finding it even harder to get a foothold on the housing ladder and the signs are that conditions are unlikely to get better in the short term.

“Mortgage lenders are demanding ever higher deposits as the credit crunch continues to take effect.

“Those who are struggling with mortgage repayments are still faced with paying a large percentage of take-home pay but there may be some release of pressure as earnings continue to rise. If the Bank of England cuts interest rates next week, many will breathe a sigh of relief.”
Source

[itmakesmewonder]

Thanks for posting this Segment. This is quite a useful article and I have noticed so many more for sale signs and shops closing down due to high rises in lettings too.
Things are becoming more apparant as the months go on.
Who wins when all these buildings get taken away from the people?

[---]

it's the consequences of the ultra-rich speculators and futures traders et al always getting a governmental bailout after they screw up on making huge gambles with our money with government encouragements and incentives..they win we lose..ad infinitum

welcome to the middle ages - we never left

[hilly7]

For the US, here is another stat, related to the economy:


“U.S. consumer borrowing jumped more than double the amount economists forecast in March, indicating a slowing economy is forcing Americans to accumulate credit-card and other forms of debt.
“Consumer credit increased by $15.3 billion for the month to $2.56 trillion, the biggest monthly rise since November, the Federal Reserve said today in Washington. In February, credit rose by $6.5 billion, previously reported as an increase of $5.2 billion.

Bit of lesser known info

The amounts can be significant. Late fees accounted for 11.5 percent of servicing revenues in 2006 at Ocwen Financial, a big servicing company. At Countrywide, $285 million came from late fees last year, up 20 percent from 2005. Late fees accounted for 7.5 percent of Countrywide’s servicing revenue last year.

But these are not the only charges borrowers face. Others include $145 in something called “demand fees,” $137 in overnight delivery fees, fax fees of $50 and payoff statement charges of $60. Property inspection fees can be levied every month or so, and fees can be imposed every two months to cover assessments of a home’s worth.


U.S. foreclosure filings increased in April to 243,353… 65% higher than this time last year. Filings increased 4% from March, reports Realtytrac, and now stand at the highest level since Realtytrac started keeping records.

And June 2008, will be the peak, provided other factors don't play in.

[harflimon]

That's nothing compared to America

http://money.cnn.com/2008/05/14/real_estat...dex.htm?cnn=yes

Some 243,353 households, nearly one in 519, received a foreclosure filing during April, according to the U.S. Foreclosure Market Report from RealtyTrac, an online marketplace that tracks foreclosed properties. That was up 4% from March, and surpassed the record of 239,851 set in August 2007.

[hilly7]

It is a fleecing from what appears to be worldwide. I think that was one of the orginal agendas I read a long time ago, control the land. They already are working hard to number people (186 out of 192 will be rfid by 2010), both of these seem to be doing quite well.

[itmakesmewonder]

Latest announcement from UK news.

'The nice decade is behind us'
http://uk.youtube.com/watch?v=PUtmx4Vi7DI

This ITN news report talks about the City in the 1970s, which was "stalked by a financial cocktail of escalating prices and economic stagnation - called 'stagflation'."

ITV news points out that many fear the return of this stagflation.

Mervyn King, governor of the Bank of England:
"The nice decade is behind us. The credit cycle has turned. Commodity prices are rising. We are travelling along a bumpy road as the economy re-balances."

The Bank of England said that it anticipates the people paying 15% extra on energy bills by autumn, due to [engineered] oil escalation.

Increases in fuel prices have already caused riots in several countries - http://uk.youtube.com/watch?v=Vc3j8BF...

The Ministry of Defence anticipated these riots in the 90-page document it released - http://www.cuttingthroughthematrix.co... - which Alan Watt discussed in the following talk:
April 13, 2007 Alan Watt Blurb (i.e. Educational Talk)
"Pathocrats' Conspiracy AGENDA for Upcoming Generation" (from Ministry of Defence)"
mp3 - http://www.cuttingthroughthematrix.co...
transcript - http://www.cuttingthroughthematrix.co...