It looks like the US crash is going to be big
Meanwhile in the UK (it won’t happen here, they’re not making land any more, the government wont let property prices fall and it’d different this time) not only does the sub prime market continue to grow but already highly mortgaged home owners continue to extract equity (MEW) to fund their lifestyles. The record mewing of the last 4 years means that many more property owners in the UK are susceptible to negative equity than last time.
If you class liar loans (self cert), 100% + loans, 4.5 x income loans, loans taken out by newbie BTL’s in the last two years on interest only and all BTL’s being subsidised by the LL in the hope of capital growth rather than rental yield being the main driver: the UK could have a sub-prime problem bigger that the US.
First the US, Spain, Ireland, France and then UK. Forget Cape Verdi, Bulgaria Morocco and Dubai, in the coming squeeze all ‘sub prime’ sorry up and coming locations which have been subject to speculative hype, will be trashed to cents on the dollar.