Summary
SHOULD you have thought that the credit crunch was over and the greater threat to our prosperity was high oil prices, think again. The collapse of confidence in Bradford & Bingley suggests that Britain's financial system is still not out of the woods. The crisis which began last year in the trailer-park mortgage market in the U.S. has landed on these shores with a vengeance.
Despite all the assurances that the UK's mortgage lenders had been far more careful than their American counterparts, the evidence is growing that we have a home-grown problem of accelerating arrears in home loans to add to those imported from overseas.See the full content of this document
Extract
Why This Crisis Will Hit All Home Owners
At Bradford & Bingley the peculiar difficulty is that it has been lending heavily to one of the most exposed parts of the housing market - buy-to-let. When property values were rising and home loans were easy to come by, buy-to-let looked a sure way to make money and a far more secure i...
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