Global mortgage problem - UK & OZ
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Mortgage defaults to double from 2006 level
Published: 12:03 Tuesday 30 October 2007
By Lorna Bourke, Money Columnist
The number of properties repossessed because the borrower cannot meet the monthly mortgage repayments is set to rise dramatically next year according to the Council of Mortgage Lenders.
The CML is predicting that repossessions will rise from 22,700 last year to 30,000 by the end of this year, leaping to 45,000 during 2008. The last time repossessions stood at this level was 1994 and 1995 when they were just over 49,000.
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Defaults on loans soar in rural areas
Jacob Saulwick
October 31, 2007
BORROWERS in NSW marginal electorates are defaulting on "dramatically" more loans than they did last year, indicating a rising tide of financial stress, credit check figures show.
The biggest increases in borrowers not being able to meet credit card, personal loan and mortgage payments are in drought-affected rural regions and the "mortgage belt" in Sydney's west.
In the federal seat of Calare in the central west, there were 77 per cent more defaults than last year, the figures, released by credit check company Veda Advantage yesterday, show.
The general manager of information services and solutions, Erica Hughes, said the figures highlighted an alarming trend towards credit difficulties and a growing debt divide throughout regions of Australia.
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