Treadmills can be a great way of exercising, you can stay in one place for as long as you like, with the knowledge that you are being productive at the same time.
But if you are running for a purpose or to get somewhere, then treadmills don’t really appeal: you’re doing all the work but not actually achieving anything.
The secured loan market seems to be on a never ending treadmill at the moment, there’s no end in sight but everyone is still putting all the work in.
Master brokers and lenders are finding it increasingly difficult to find a way to make money and stay in business and this looks set to continue until somebody waves their magic wand or lenders want to lend again.
Next week the Council of Mortgage Lenders and the Ministry of Justice are expected to release their figures on the number of repossessions in 2008.
The CML does not expect its figures to show that there were more than 45,000 repossessions in 2008, but it warns the MOJ’s figures could be up to 20% higher than this because they look at properties that have been repossessed by second-charge mortgage lenders.
This means the figures could show up to 10,000 properties were repossessed by second-charge lenders in 2008, which maybe I’m alone in thinking doesn’t actually seem that many for recessionary times.
It’s certainly not a good figure but could be a lot worse, when you think about how many secured loans were taken out.
When the secured loan market comes through the current recession, one thing will be a lot clearer in people’s minds -that a secured loan does not always equal a repossession.
The mind set of people before the current economic problems was that taking out a secured loan was more risky than perhaps a remortgage. But with repossession figures increasing the mindset of people will eventually change.