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Phantom mortgages being offered.
ad9898_3
Posts: 3,858 Forumite
Seems that deals are being advertised that don't exist, just to shut Brown up. Gordon isn't helping FTB'rs by allowing the market to fall and return to affordability, so the banks are doing it for them, saving FTB'rs from themselves.
http://www.dailymail.co.uk/money/article-1145491/Mystery-phantom-mortgage-Lenders-offering-attractive-low-deposit-home-loan-deals--they.html
Quote.
Phantom mortgage deals are being offered by lenders under pressure from the Government to help borrowers, claim angry brokers. The loans appear available, but when borrowers apply, they are turned down. Brokers say this is especially true of the few loans available to first-time buyers with small deposits and younger borrowers, which are in practice almost impossible to obtain.
Several banks and building societies, including Abbey, Cheltenham & Gloucester, Halifax, the Post Office, RBS NatWest and Yorkshire Building Society, advertise mortgages with only a ten per cent deposit. But brokers say that borrowers are being rejected even when they have an excellent credit history, stable job and high salary. This comes as figures last week revealed that mortgage lending had fallen almost 50 per cent since last year and was at its lowest level since 1974.
http://www.dailymail.co.uk/money/article-1145491/Mystery-phantom-mortgage-Lenders-offering-attractive-low-deposit-home-loan-deals--they.html
Quote.
Phantom mortgage deals are being offered by lenders under pressure from the Government to help borrowers, claim angry brokers. The loans appear available, but when borrowers apply, they are turned down. Brokers say this is especially true of the few loans available to first-time buyers with small deposits and younger borrowers, which are in practice almost impossible to obtain.
Several banks and building societies, including Abbey, Cheltenham & Gloucester, Halifax, the Post Office, RBS NatWest and Yorkshire Building Society, advertise mortgages with only a ten per cent deposit. But brokers say that borrowers are being rejected even when they have an excellent credit history, stable job and high salary. This comes as figures last week revealed that mortgage lending had fallen almost 50 per cent since last year and was at its lowest level since 1974.
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Comments
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Seems that deals are being advertised that don't exist, just to shut Brown up. Gordon isn't helping FTB'rs by allowing the market to fall and return to affordability, so the banks are doing it for them, saving FTB'rs from themselves.
http://www.dailymail.co.uk/money/article-1145491/Mystery-phantom-mortgage-Lenders-offering-attractive-low-deposit-home-loan-deals--they.html
Quote.
Phantom mortgage deals are being offered by lenders under pressure from the Government to help borrowers, claim angry brokers. The loans appear available, but when borrowers apply, they are turned down. Brokers say this is especially true of the few loans available to first-time buyers with small deposits and younger borrowers, which are in practice almost impossible to obtain.
Several banks and building societies, including Abbey, Cheltenham & Gloucester, Halifax, the Post Office, RBS NatWest and Yorkshire Building Society, advertise mortgages with only a ten per cent deposit. But brokers say that borrowers are being rejected even when they have an excellent credit history, stable job and high salary. This comes as figures last week revealed that mortgage lending had fallen almost 50 per cent since last year and was at its lowest level since 1974.
This is the proof that i have suspected for a long time. i have been hearing about these so called 90% LTV mortgages which never seem to go through.
This just shows how bad this housing crash is going to get. until they offer decent fixed rates for FTB's then we will never see a recovery.
Maybe banks want the prices to fall so they dont have to risk so much per house? Less exposure to the market. even if they lost money on some home loans through repo's they would be less likely to lose in the future if prices were half 2007 figures.0 -
daily mail - nuff said
i can see lenders increasing lending criteria to make the loan more secure/dificult to acquire.
so not strictly phantom mortgages but very hard to get mortgages of you have a not clean credit history,
i've seen a lender load the rate by 0.5% if the lender isn't a British national even a EU national - Nationwide/Mortgage Works0 -
daily mail - nuff said
but i can see lenders increasing lending criteria to make the loan more secure/dificult to acquire.
i've even see a lender load the rate by 0.5% if the lender isn't a British national - Nationwide/Mortgage Works
ive seen similar stories in the Gaurdian and the Times.
Im sure this is the case though banks have done a 180. they inflated the bubble with risk and now they are popping it with over protection.
A good way of working out what house prices should be is to work out when they started taking these risks and then add inflation so you can see the value that they would be today,0 -
links please?? but do you actually believe everything the newspapers say. there is something in this story as i mentioned above.pandamonia wrote: »ive seen similar stories in the Gaurdian and the Times.
if the banks are actually doing this the Advertising Standards Authority would love to take this case on with the banks currently popularity.
you're sure - how about it's not the case. you being sure isn't fact...pandamonia wrote: »Im sure this is the case though banks have done a 180.0 -
Lifetime tracker at BR + 2.79% and LTV of 70% , what is that guy doing :eek:'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
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links please?? but do you actually believe everything the newspapers say. there is something in this story as i mentioned above.
if the banks are actually doing this the Advertising Standards Authority would love to take this case on with the banks currently popularity.
you're sure - how about it's not the case. you being sure isn't fact...
ill try and find them out. but it does make sense since they have limited capital now and they dont like to lend 90% LTV
Also i have just checked moneysupermarket and nearly all the 90% mortgages are gone! there is only 1 now below 6% most are 6.3-6.8%!!!!! unless you lend 2.5-3x salary0 -
pandamonia wrote: »ill try and find them out. but it does make sense since they have limited capital now and they dont like to lend 90% LTV
panda i'm not in disagreement with the article - if you read it; it says that banks are lending at 90% but are much more stricter with their lending at 90%. what's wrong with that?0 -
panda i'm not in disagreement with the article - if you read it; it says that banks are lending at 90% but are much more stricter with their lending at 90%. what's wrong with that?
Well it depends on the % of people accepted compared to turned away.
C&G have withdrawn their 5.69% 2 year fixed...
Britiannia is now 85% LTV
Most are now well over 6%... which is twice the interest than some trackers for higher LTV.
there are some building societys offering SVR in the 5.5%+ region but their mulitples are 2-3x
To be honest all this will do is continue to force the prices down on houses? Im not complaining but i bet people trying to sell wont like it.0 -
I suppose most EA's and sellers are at the mercy of lending by the banks hence the reason why most homes are not selling anymore.
"To be honest all this will do is continue to force the prices down on houses? Im not complaining but i bet people trying to sell wont like it."
I suspect there will be a lot of broken hearts coming in the next few months....0 -
From experience the 90%ers tend to be being turned down at the valuation stage when properties are down valued.0
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