Friday, June 03, 2011

Walkaways, UK Property Crisis,

It has been a while since this blog re-visited this painful topic. Entering the title of this post in the blog's search bar will yield many posts, amongst which are some proposing a possible solution whereby the pending disaster could well have been somewhat mitigated, if not averted, or read them by merely clicking here.

What prompted my return to the topic, other than the fall in mortgages issued in April, as announced this week, and this detailed analysis from the Wall Street Journal, linked here, has been the huge switch to interest only loans in the UK, effectively making your lender your landlord, and soon, almost inevitably also to be your evictor, as interest rates rise, as they eventually must, with inflation now above 5%.

How can the Ministers of the Coalition Government have done nothing to avert this coming catastrophe, merely sitting on their hands over the last twelve months while all around them chaos mounts.  Another large fall in property prices is just round the corner, which must surely be practically certain to be the final straw for the hard-pressed and long-suffering British taxpayer!

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