August 24, 2007

We’re not #1 in debt :(

Foreclosures Force Britons to Ponder Shift to Fixed Rates – New York Times
Whether they can is an open question, especially given Britons’ attachment to home ownership, adjustable-rate mortgages and personal debt. British consumers are the most indebted citizens of any Group of 7 nation, and television shows devoted to real estate and debt advice are among the most popular programs in the country.

[snip]

Currently, only 5 percent of British home buyers take out fixed-rate mortgages. The norm here is a mortgage with a fixed rate for the first two years, and then a floating rate for the duration of the mortgage.

[snip]

In fact, the National Housing Federation recently predicted prices would rise 40 percent in the next five years, elevating the average price of a home, which already costs about 11 times the average British salary, to £302,400, or $618,000.

Some day we’ll beat Britain. Some day.

Comments (4) -- Posted by: burbed @ 10:35 am

4 Responses to “We’re not #1 in debt :(”

  1. sonarrat Says:

    If the survey compared just California against the UK we’d blow them out of the water.

  2. burbed Says:

    In all fairness though, we don’t have a 11x ratio between incomes and housing prices.

    But we can certainly hope for it.

  3. asurfer Says:

    We are very hopeful; Just look at this ad, wow!
    $305000 Student Condo near UC Campus

  4. Steve Says:

    Except that the uk average house price is £200K, not £300K, someone has finger problems.

    Also the numbers of foreclosures, although rising isn’t really very high. It has a huge way to go to reach early 90′s levels.

    The housing fallout in the US has has zero effect on the market in the uk so far, will it crash?, who knows.


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