Housing Market – Past Present & Future

 The problems can be traced back to the housing market in the US, Omaha housing market in which people with poor credit history (known as ‘sub-prime’ borrowers) were allowed to take out mortgages – many of whom subsequently could not keep up with payments.

Many of these mortgage debts had been ‘bought’ by UK banks, meaning they were now responsible for receiving the repayments. However, due to the amount of times these debts had been bought and resold, it was often difficult for banks to predict how much of the debts would be repaid.

When many of these sub-prime borrowers began to fall behind on repayments, it hit whoever ‘owned’ the mortgage debts – meaning both the US and the UK were affected. This is what became known as the ‘sub-prime mortgage crisis’.

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