Housing Crisis

There is an interesting piece in the Sunday Times, linked here, titled "Sub-prime 'time bomb' is set to explode in Britain". It points out some pretty scary realities but seems to miss the most obvious likely end-result. If those on so-called sub-prime mortgages now set to rise from 6.58 per cent to 9.5 per cent are those with the worst credit records, then by definition these will be the householders most likely to cease making repayments or walking away from their debt leaving the problem of falling property values with the lenders. Even if they have sufficient remaining personal equity to wish to sell their property, to whom are these sub-prime borrowers, or their lenders, going to sell? Compounding their difficulties will be the need for all to now first buy their EU required Home Information Packs for yet more up-front cash from December!