Repossessions Double in a Year
According to the data from Financial Services Authority, as rising household bills and the squeeze on lending took their toll on struggling borrowers, the figures of homeowners being repossessed almost doubled in 12 months to the end of last September.
FSA announced that the figure of homeowners falling into arrears has jumped by 10% in the third quarter of last year to 60000 cases. According to FSA’s data, 13161 properties were taken into possession by lenders in the third quarter last year. It is a 92% increase on the same period of the previous year. Meanwhile, the number of borrowers falling behind on mortgage repayments has increased sharply. With the borrowers increasingly struggling to clear arrears, the total number of households behind with their repayments increased by 10% over the quarter to 340000.
These figures paint a grimmer picture of the glooming situation in the market sector of housing.
UK Watchdog Tests Life Assurers
According to report by Financial Times, the UK’s biggest life assurers have been asked by regulators to test if their financial strength could withstand a series of further shocks, sparking industry speculation that the move could be a prelude to enforce capital raising.
The chief City watchdog has written to life assureres requiring them to test their ability to cope with a number of extreme scenarios with a 40% fall in equity markets. This move underlines the concern of Financial Services Authority about the strength of the life insurance industry. Some life assurers are anxious about that the FSA will use the results of the exercise, which also includes testing for further cuts in interest rates and a significant rise in corporate bond defaults, to force the industry to raise capital at the bottom of the market.
It is indicated by the regulator that in order to avoid forcing life assurers to sell equities or bonds in falling markets, it will be flexible if insurers are struggling to meet some of the capital demands amid the turmoil.
Some executives are worried about the impact of any speculation over the results of the “knee jerk” test on life assurers’ share price. It is possible that the exercise could put UK insurers at a competitive disadvantage compared with overseas rivals.
-
Get your chance to win it BIG with fabulous bingo games
-
Stock Quotes
-
Categories
-
Archives
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
-
Links
-
Meta
Welcome to Euro Station
