Many experts throughout the UK feel that the current poor credit mortgage crisis forced a housing correction. While some feel that it was overdue, the fact remains that many homeowners with poor credit mortgages are now in serious economic trouble. Falling home values could not have come at a worse time for those struggling with poor credit mortgages and now, many owe more than their property is worth. Many are looking to the US poor credit mortgage market for answers and coming up short since the problems are just as widespread there.
“We think that in most respects the UK is undergoing a U.S.-style housing correction,” said David Page, economist at Investec, who expects house prices will continue falling until the end of next year before finding a bottom. We think that this is likely to be followed up by years of much flatter growth than we have seen for the bulk of the preceding decade.”
“The lack of mortgage finance is central to the problem,” Miles Shipside, commercial director of Rightmove, said in the statement. “London, in particular, appears to be having its own special summer sale, with over 21,000 pounds off in a month.”
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