British Real Estate Facing It’s Own Bubble Popping
After years of rising property values, the British are facing their own housing bubble and it is not going to be pretty. The use of subprime loans as housing prices stripped the ability to pay for a conventional loan became popular in England with the same results as in the United States.
Now that housing prices are coming down and the subprime loans are resetting, homeowners are getting caught in the pinch.
I wonder if the British are watching how the United States is handling the mortgage crisis and if they will try to do something different to alleviate their situation?
After years of watching house prices soar even faster than those in America — modest three-bedroom tract houses in the London suburbs were going for $2.2 million at one point — Britons are now weathering a sharp rise in mortgage defaults.
Moreover, many debt-laden homeowners have no means to salvage their properties because favorable loans are suddenly harder to get. Desperate consumers are increasingly turning to costly and confusing financial rescue plans that often end, later if not sooner, in the loss of their homes.
The Financial Services Authority, which regulates banking in Britain, warned last month that 1.4 million mortgage holders will face interest-rate resets on their loans this year, with payment hikes of up to $420 a month. via the Los Angeles Times
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Comment by West End Estate Agents on 20 February 2008:
We are watching what is going on. You can trust me on that one
Comment by Tom on 20 February 2008:
I am sure you are… It has to be disconcerting to see the weakness in the credit markets just as the housing situation changes.
Comment by West End Estate Agents on 20 February 2008:
Interest rates are going down, first time buyers are waiting to see if prices will come down as well.
Soon it will reach a level when everything will level out and their will be a feeding frenzy that will kick it all off again.
The lion sleeps tonight.
Comment by Sal on 27 July 2008:
Do anybody have some clients who want to invest in FL real estate. It is very good time to buy.
Comment by Joseph García on 16 February 2009:
Am from Costa del Sol, Málaga, South Spain. It´s obvious that the moment isn´t any good to sale a property, but anyway as prices are getting down, still a british citizen may buy a property in Costa del Sol. If you can keep in touch with me throughout here, me & wife have got 2 properties in Vélez-Málaga area, no real estate in middle, lower cost for purchaser. Thanks for reading these lines.
Comment by USA Lending and Realty on 5 October 2009:
If the Bristish are having that many problems with their real estate than how about runing your heads to USA. I have over 200 different properties thoughout Florida and selling at a really good price point and if any foreign investor is interesting you can contact me through the sites below. Let me help you with these issues.