FSA Tells Lenders to Expect More Repossessions

Mortgage Application Form

The FSA told UK mortgage lenders this week to expect a massive rise in repossessions and defaults on payments.

In a twist whose irony will not be lost of the tens of thousands of UK victims of home repossession, many lenders are now in trouble and unable to refinance their debts, in the same way that many of their customers have been refused remortgage finance to service theirs.

Of course, the difference is that the individual homeowner facing repossession loses their home, whereas the banks facing similar situations get bailed out by public money, including taxes paid by the very homeowners who were repossessed.

It shows the old adage to be true that if you owe £5000 it’s your problem, if you owe £50 million it’s the bank’s problem.

Or in this case the Government’s.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: