Nationwide brings back 95% mortgage

grogdog

poppy10 wrote: »

If someone can't afford a 10% deposit they shouldn't be buying in the first place.

dont agree with that , nothing wrong with 95% mortgages

Isleman

grogdog wrote: »

dont agree with that , nothing wrong with 95% mortgages

This is why so many people are having problems now. They got mortgages they could not afford in the first place. In my opinion it should be minimum 20% deposit .
If that will happen you won't see prices going up in spiral and neither house price crashes.
The higher the deposit less sub prime mortgages on a much more stable market .

opinions4u

Isleman wrote: »

This is why so many people are having problems now. They got mortgages they could not afford in the first place.
True. A new age of personal responsibility is long overdue.

In my opinion it should be minimum 20% deposit.
This would just about kill off any hope of economic recovery. That said, I do agree that a personal stake in the property should always be asked for and vendor gifted deposits should not be allowed.

If that will happen you won't see prices going up in spiral and neither house price crashes.
You will kill the housing market immediately. This would be like switching off it's life support machine, which is already on a low battery! Sorry.

The higher the deposit less sub prime mortgages on a much more stable market .
You can still be a sub-prime applicant with a 20% deposit. Quality of underwriting is more important that size of deposit alone.

I understand where you're coming from, but don't think it's a winner.

grogdog

Isleman wrote: »

This is why so many people are having problems now. They got mortgages they could not afford in the first place. In my opinion it should be minimum 20% deposit .
If that will happen you won't see prices going up in spiral and neither house price crashes.
The higher the deposit less sub prime mortgages on a much more stable market .

i could sit and explain why you are wrong on so many levels but i will just say that your post is nonsense.

Isleman

opinions4u wrote: »

I understand where you're coming from, but don't think it's a winner.

The amount of credit on the market made out of thin air contributed to all this market crash.
This is how houses got their astronomical prices .
It seems there are still no lessons learned and they head again to the same thing.
You are telling me the market will be killed . I think it will crash again if the amount of credit given has no backup in real money.

Isleman

grogdog wrote: »

i could sit and explain why you are wrong on so many levels but i will just say that your post is nonsense.

I could say the same about your post

hearts

Isleman wrote: »

The amount of credit on the market made out of thin air contributed to all this market crash.
This is how houses got their astronomical prices .
It seems there are still no lessons learned and they head again to the same thing.
You are telling me the market will be killed . I think it will crash again if the amount of credit given has no backup in real money.

Lets not get lost here. The present problems were WHOLEY caused in the US. I'm not saying there would not have been a crash here at sometime, but the root cause of the present worldwide problem was solely the fault of the US Subprime sell ons.

grogdog

the main reason the market got out of hand, was due to buy to lets and investors thinking the golfden egg had been laid, so if this side of the market is monitoredmore closely ie no self cert buy to lets then the residential market will find its own level.

opinions4u

hearts wrote: »

Lets not get lost here. The present problems were WHOLEY caused in the US. I'm not saying there would not have been a crash here at sometime, but the root cause of the present worldwide problem was solely the fault of the US Subprime sell ons.

While the US sub-prime problems caused the wholesale funding markets to freeze up, this didn't cause HBOS to lend as badly as it obviously has done on it's corporate side.

HBOS brought its specific problems on itself - the money markets were happy to fund them until the bad debts started piling up.

looster

If you were an existing Nationwide customer coming to the end of a deal, wouldn't you just go onto SVR rather than opt for either of these deals? I guess some like the security of a fixed rate perhaps