Subprime mortgages

By This Is Money
Updated: 13:19 BST, 5 August 2008

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We 診察する the mortgages on 申し込む／申し出 to those with poor credit histories ? and ask what happens when borrowers default.

What's wrong with them?

'Sub prime' doesn't 言及する to the mortgages but to the 顧客s who take them out.

Anyone who has a poor or patchy credit history will be considered 'sub-prime', along with peo ple who have recently moved abroad or have been in their 職業 only a short while.

The 称する，呼ぶ／期間／用語 means you aren't as 望ましい as 顧客s who have been 支払う／賃金ing their mortgages for years without a problem. Often shunned by 伝統的な mortgage-providers, 'sub-prime' borrowers are 軍隊d to go to specialist 貸す人s.

Is there a 刑罰，罰則?

Yes, in the form of higher 利益／興味 率s. Because a 'sub-prime' 顧客 is seen as more liable to default, the 利益／興味 率s and 告発（する），告訴（する）／料金s will be much higher. This may be 正当化するd in 確かな circumstances, but banks have been （刑事）被告 of 不当利得行為 after lending money at high 率s to people who can't afford it.

When all goes to 計画（する）, banks can 得る bumper 利益（をあげる） 利ざやs. But when there is a 消費者 or 住宅 下降 負債 defaults can be high, as HSBC learned to its cost.

Are defaults 急に上がるing?

全体にわたる, mortgage defaults remain very low in both the US and UK. The main problem is American 消費者s who have taken out second mortgages and used some of the 公正，普通株主権 in their homes to 支払う／賃金 off credit card 法案s. They are feeling the pinch after 17 利益／興味 率 引き上げ（る）s in two years.