1st round US write downs, 2nd round UK?

[KIWIKARLOS]

http://www.bloomberg.com/apps/news?pid=20601087&sid=aZY8h6pGdc5o&refer=home

US house markets sinks taking down US equities based on MBS's etc, thy say worst may be over (yet to be seen) now UK house prices start to decrease..

Could a housing market downturn in the UK trigger another round of write downs of securities linked to their market ? Does the UK housing market operate as the US one did with morgage backed securities?

Does Spain, Ireland and Australia's housing markets operate the same as well?

Any thoughts

 

[Kauri]

Re: 1st round US write downs, 2nd rond UK ?

Kinda like the UK House of Horrors coming to a fun park near you...

The era of the 100 per cent mortgage has ended after the last lender to offer a deposit-free loan withdrew the deal.
Buyers will now need a deposit of at least 5 per cent - an average of £10,000 - to purchase a home.

More than 75,000 households could be plunged into negative equity this year with Labour heartlands expected to bear the brunt of the credit crunch, data from the biggest banks and building societies have shown.

Almost two million people have had their credit card limits cut in the past six months as companies impose stricter lending criteria because of the credit crunch, research has shown.
Companies have trimmed £3.1 billion off spending limits as they become increasingly worried about shoppers' ability to repay their debts.
About four per cent of adults - 1.8 million people - have had their limits reduced in the past six months,

A huge 2.5% fall in UK
house prices in March according to the Halifax with more to come.

http://www.telegraph.co.uk/news/index.jhtml

Cheers
............Kauri