US subprime market offers warning for UK – S&P

Although there are differences between the US and UK’s mortgage markets, the UK should take heed from the crisis in the subprime mortgages sector in the US, says rating agency Standard & Poor’s. "The US experience should act as a timely lesson in how sensitive lower-quality loans can be when the economic environment turns," says credit analyst Andrew South at S&P in London. More than 50 mortgage firms have closed in the US since the beginning of 2005 as delinquencies rise to record levels o