What would happen if every1 agreed 2 stop paying mortgages & homes were repossessed with higher intrest rates

Oh yes they would, take everysingle one. All those people would be homeless.

they would most definitely repossess all of the houses where the owner will not pay the mortgage. if no one then bought them again, it would definitely cause a crash on the money markets & ruin the economy.

i live in the USA & do not know what lending practices r like in the UK. but i do know that if the USA money markets collapsed (and UK is investments here r a part of our money market) that it would lead to a worldwide depression. that is because all of the money markets in the world r dependant on what happens with ours. we also hold money & assets of different governments (which is why we can impose monetary sanctions on nations such as north korea if they displease us), & we lend out a huge number of dollars to other coutries for development in one way or another.

the way (here in the USA) that lenders r able to give new mortgages is by packaging up the mortgages they already gave into a portfolio which is sold out to investors in the secondary morgage market (pronounced like, but not necessarily spelled this way) such as fanniemae, ginniemae, & freddiemac. the portfolios r sold at a small discount so that the investors funnel money into the lenders & the cycle continues.

if all mortgagors discontinued to pay their principal & interest payments (or even just interest), nobody would want to buy mortgage portfolios & therefore no money would go to the lenders to fund mortgages. foreclosed properties may even just become straight rentals held by lenders, if nobody was willing to buy them.

however, in the case u mention, the value of the real estate would have to go down & down & down so far that properties would be getting sold so cheaply--far less than what the mortgage balances were--as to cause an entire monetary collapse & depression, not recession. because, even when people r not buying & selling real estate but simply refinancing it, we end up living in a recession. that is how important real estate SALES are: they fuel almost all our economy.

i wrote & coded a webpage one time on the real estate industry in the USA, getting data from the last census. when u look at how a hole in the ground eventually becomes improved real estate, considering all elements, including all labor, that go into making the building(s), sales, & closings, u realize that about 28-30% of our gross domestic product (GDP) is related to real estate! gee, if it were to get hit as u mention, all dominos would fall down & i wonder how we would survive? personally i think it could become a complete collapse of society & war in the streets.

Rates typically go up to control the market, not to make mroe money. If the market is growing to fast, they incease interest rates to slow inflation. If people stopped paying, everyone would probably lose their saved wealth in banks, since they nly have to have a certain portion in cash; the rest can be loaned out. Overall, it would detroy the economy. The market has a tendency to correct itself. People will stop buying houses, or they will bild smaller houses if rates go too high, so it makes sense for banks to keep rates reasonable. At the same time, very low rates can create a rush on the building market, & people will refinance at high rates. This creates an infulx of money intot he market, since bank loans r overall unminted money with little to back them. This is detrimental & will only cause prices to go up, while the wage earner is salary does not increase. I hope I answered ur question.

NO,THEY CAN KICK ALL OF YOU OUT. BOARD UP THE HOUSES. THEN HOMELESSNESS WILL INCREASE WHICH WILL MAKE CRIME INCREASE WHICH WILL MAKE THE ECONOMY BAD. THEN THE CITY WILL EVENTUALLY BE DESTROYED BECAUSE THERE IS NO ORDER. THEN THERE WILL BE NO TOURIST TO BRING IN MONEY. THEN THERE WONT BE NO JOBS. THEN NEWS REPORTERS ARE GOING TO COME AND CALL ALL OF YOU REFUGEES. SO PLEASE PAY YOUR BILLS PEOPLE, IT'S COLD OUTSIDE. GET A SECOND JOB, OR TRICK IF YOU HAVE TO

Yes they will. Reposess only means that a Sheriff will throw u out of the home & padlock it. Try to bargain with the lender for reduced payments stating why. They may consider restructuring ur payments OR allow u to skip one payment to catch up on other things.

Lenders resell mortgages to a large company. Countrywide Funding is the major player in the US. They buy everyone is mortgage around the country from the local lenders. The company has mortgages & investments throughout the country & abroad. Your home & those of others will not put a dent into their overall influx of capital. They will take the slight & temporary loss without missing a beat in their total revenue. They wo not let people live for free.

They would eventually and then they would go and increase the rental prices, There is no way to win this battle unfortunately.

The banking system would collapse. There would be a depression and probably chaos.