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Changes in interest rates drastically affect the value of mortgages.
The value of mortgages advanced over the month also rose, to £14.4bn, as did repayments.
The value of mortgages taken out in April was the highest for six years.
However, the total value of mortgages approved increased from £13.9bn in May to £14bn.
A burst of inflation would speed up this process by eroding the real value of mortgages.
As late as 2003, subprime loans accounted for only 8.5percentt of the value of mortgages issued in this country.
Similar(32)
But the nominal value of mortgage debts would remain fixed.
Citigroup wrote down $1.3 billion from the deterioration in the value of mortgage-related securities.
With house prices falling anew, further reducing the value of mortgage assets, how reasonable is that?
Everything fell apart when the value of mortgage-backed securities went to hell.
It has also written down the value of mortgage-backed collateralised debt obligations but stressed it has no direct exposure to the troubled US sub-prime mortgage market.
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