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UK mortgage lenders accused of negligence, further house price falls forecasted for 2008 and a national TV programme connects 70% of repossessions with sub-prime lenders.

Further House Price Falls Forecast For Next Year

As lenders increase their lending criteria to fend of bad debt a further fall in house prices is forecast for early next year. Global Insight Chief Economist Howard Archer declared earlier this week “that the housing market could see a sharp correction next year”. Not good news for already nervous property owners.

Citizens Advice Accuses Sub Prime Lenders Of Negligence

On Wednesday Britain’s leading advice charity ‘Citizens Advice Bureau’ accused the sub-prime lenders of creating the present mortgage crises through negligent lending by offering sub-prime mortgages to people that clearly cannot afford them. The Council of Mortgage Lenders (CML) were quick to brush off the accusation calling it “skewed” and “disproportionate” retaliating further by accusing the charity of “sensationalism”.

BBC Investigation Reveals 70% Repossessions Linked To Sub-Prime Lending

In October the BBC ran a special report through its Panorama program focusing on UK repossessions. The report was highly damaging to the sub-prime lending institutions as it found that over 70% of all UK repossessions were directly related to sub-prime lending. Forecasts Another Year of Trouble

“The credit crunch has hit everybody harder than expected, lenders, general borrowers and especially people looking for ‘poor credit mortgages’ who are finding new the criteria difficult to get through. Earlier forecasts of January/February 2008 seeing the mortgage industry stabilising were very premature. The reality is the ‘credit crunch’ and its knock on effect will stay with us for most of next year”. Paul Giles M.D.
Paul Giles
1 Richmond Hill
Tel: 00 44 (0)1202 310868
Fax: 00 44 (0)1202 311246

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