Bank of England Chief Economist :1,350,000 Borrowers Face Negative Equity

Charles Bean is the Bank of England’s Chief Economist, he gave an under-reported speech last week that shook up the Gilts market. It should shake up everyone. According to Mr Bean the Bank’s research has found that 5% of mortgagors have less than 20% equity in their home. That is equivalent to 1,350,000 homeowners.

Along with many other reputable forecasters Professor David Miles, chief UK economist at blue chip investment banking powerhouse Morgan Stanley, is predicting that by the end of 2009 house prices will have dropped 20%.

In pockets of London prices have already fallen 20% from their highs. If that trend goes nationwide Britain is looking likely to have more than million homes in negative equity before the next election. This is based on the Bank of England’s own somewhat conservative numbers…




Tip offs: 0709 284 0531
team@Order-order.com

Quote of the Day

The Queen visits children in a Manchester hospital:

“You were able to enjoy the concert at least, weren’t you?”

Sponsors

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.

Facebook

Sneering Thornberry Sneering Thornberry
Ministers Wheeled Out to Defend Ditched Care Policy Ministers Wheeled Out to Defend Ditched Care Policy
Watch: Crick Roasts “Weak and Wobbly” May Watch: Crick Roasts “Weak and Wobbly” May
Protester Arrested at May Wrexham Visit Protester Arrested at May Wrexham Visit
Clegg Spinning Brexit Doom Report Clegg Spinning Brexit Doom Report
Sunday Shows Sunday Shows
Read Tory Manifesto In Full Read Tory Manifesto In Full
Green Leaders Cringe Skit Green Leaders Cringe Skit
Never Ending Tory Deficit Reduction Horizon Never Ending Tory Deficit Reduction Horizon
LibDem Collapse Explained LibDem Collapse Explained
Taxpayers’ Alliance Updates Iconic Tory Poster Taxpayers’ Alliance Updates Iconic Tory Poster
Cult of Corbyn Cult of Corbyn
“Labour is Chocolate Gateau: Too Much Makes You Sick” “Labour is Chocolate Gateau: Too Much Makes You Sick”
Labour Election Broadcast Star’s “Tax Efficient” Accounting Labour Election Broadcast Star’s “Tax Efficient” Accounting
Reporter Grabs Boob Live on BBC Reporter Grabs Boob Live on BBC
Liar Clegg Brillo’d Liar Clegg Brillo’d
Listen: Was McDonnell Handed Deficit Note? Listen: Was McDonnell Handed Deficit Note?