Tuesday, September 25, 2007

European Mortgage Market / Percentage Of Variables Rates

OUCH! Combine this with the following charts House prices / Through the roof & Mortgages / Housing burdensand you can smell "trouble". Except you are a central banker or an "expert"...... ;-)

Oh Oh! Kombiniert das mit den nachfolgenden Charts House prices / Through the roof & Mortgages / Housing burdens und man kann das kommende Unheil ausserhalb von Deutschland förmlich "riechen". Es sei denn man ist Zentralbänker oder sonst ein hoch bezahlter "Experte".... ;-)

I want to highlight The Coming Storm / Pimco on UK that has much more details on how the rate increases are already impacting the consumer

Ich möchte in aufgrund der Bedeutung des UK Marktes gesondert auf The Coming Storm / Pimco on UK hinweisen wo ziemlich anschaulich beleuchtet wird wie die bereits beschlossenen Zinserhöhungen den Konsumenten und die Wirtschaft treffen.

Dank an die FAZ
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Anonymous Anonymous said...

Regarding mortgage financing, with the exception of the UK I have difficulty believing that things in Europe were as bad as in the US.


3:36 AM  
Blogger jmf said...

Moin Eh,

i agree.

To my knowledge the subprime type of lending has spread only in part to the UK.

But the combination of low fixed rate mortgages in large part of Europe and high appreciation doesn´t look good....

My focus is still on the UK. So far the bubble and the first mom decline has made almost no headlines.

Even with the Northern Rock bank run the focus wasn´t so much the housing bubble in the UK. It was more the flip flopping from the BOE and "liquidity" issues overall in the banking sector.

4:00 AM  
Blogger jmf said...

U.K. Banks Will Reduce Credit to Companies, BOE Says

U.K. banks will reduce the supply of credit to companies ``significantly'' in the fourth quarter as they tighten loan conditions and respond to higher market borrowing costs, the Bank of England said.

The central bank said its new quarterly survey of lenders showed a balance of 49.3 percent expect to cut credit supply in the next three months compared with 20.2 percent in the previous quarter. The responses were collected from Aug. 20 to Sept. 13.

4:17 AM  
Blogger jmf said...

U.K. Commercial Banks Shun Bank of England Money-Market Auction

Sept. 26 (Bloomberg) -- U.K. commercial banks shunned the Bank of England's emergency auction of three-month loans.

Financial institutions made no bids for the 10 billion pounds ($20 billion) that the central bank offered to ease strains in the money market, the Bank of England said. The cash was offered at a minimum rate of 6.75 percent, 1 percentage point above the Bank of England's benchmark.

Maybe they feared another bank run.......

5:00 AM  
Blogger jmf said...


6:10 AM  
Blogger jmf said...

Mis-selling in UK subprime loans exposed

Borrowers have been told to stretch their incomes to take out loans much bigger than they can realistically afford

Half of all subprime mortgages in the UK are estimated to be self-certification loans - where borrowers state their incomes, which the lenders will not always check

A former mortgage broker told the BBC that inflating the client's income is seen as an easy way for some advisers to get a deal approved. And one borrower whose real income was £25,000 said he was advised to double that on his mortgage application to obtain a loan of more than eight times his salary....

7:34 AM  

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