More than one million British risk to be left without a roof over the head!
8 February 2008More than one million British will experience difficulties with refunding mortgage credits, if economy deceleration will force banks to continue toughening of lending money criteria, is said in the sixth annual «Forecast of financial risks», made the British Financial Services Authority (FSA).
FSA emphasizes three high risk factors, which can force homeowner to declare mortgage credit default. They are long term of disbursement of a loan, high ratio between a credit and a pledge, and a high ratio between the loan and earnings of the borrower. One third of 5,7 million persons, who have taken the mortgage credit in the period since April 2005 till September, 2007, have at least one risk factor. And 18 % of borrowers have at least two risk factors.
This year about 1,4 million borrowers will face increase in monthly payments of mortgage credit on the average by 210 pounds ($417,8).
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