UK Mortgage trouble turns Toxic

[Damian George]

Oh dear,

Looks like the mortgage market isnt going to get better any time soon as Barclays, HBOS, and other British banks may have to raise new capital to cover escalating losses on toxic debt and meet fresh needs if the economy slides into recession, according to analysts at Merrill Lynch, warning that mortgage lenders across the region may face another $120bn in write-downs.

Bye for now

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[Damian George]

The Council of Mortgage Lenders reports that repossession claims and orders in England and Wales rose sharply in Q2 y/y. Repossessions rose 17% y/y and possession orders rose 24% y/y. The Market News report says “While the annual increases are striking, the actual numbers still represent only a tiny fraction of total outstanding mortgages. In all, there were 39,078 mortgage possession claims and 28,658 mortgage possession orders in the second quarter… the number of properties taken into possession in the first six months of 2008 amounted to just 0.16% of all loans.”

the news just keeps getting better