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Wave of Foreclosures Forces Britons to Ponder Fixed Rates

New York Times Original article ›

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Britain is a country which for various reasons is addicted to adjustable rate mortgages only 5% of the mortgages are fixed rate in Britain, and meantime the Bank of England is moving rates up now at 5.75%. And Britain has a retail mortgage market without mortgage secutization that has created capital pools that support the mortgage market in the USA. In fact the first 25 year mortgage was introduced in March 2007 by Nationwide, as HBOS and Abbey did not offer one. About 2 million mortgages will switch to adjustable rates in the next year, so Britain does face a looming housing crisis.


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