95% LTV is back

worried_jim

1echidna wrote: »

Sounds good but what kind of income, job security etc do you have to have? My bank, Lloyds TSB, keeps sending me offers to take out a loan. They must know I have savings and investments but I suppose the fact that they are offering these loans to people who are of low risk of defaulting looks good in their public relations.

There is just as much money to lend to customers as there was last year, branches are just waiting for customers to come in and apply.

worried_jim

pizzagirl wrote: »

I think they are a subsidiary of a Danish bank and operate mainly in Northern Ireland

Northern Bank is the largest retail bank in Northern Ireland

Northern Bank began in 1809 as a Belfast based banking company known as the Northern Banking Partnership. From the very beginning Northern catered for the business market and expanded services in line with its needs.

Northern Bank has evolved over the years meeting the changing needs of customers.

In 2005 the Danish-based Danske Bank Group acquired the bank and has invested approximately £100m in Northern Bank. We now have a leading edge technology platform which allows us to offer some of the most innovative and competitive products and banking services in the market.

mr.broderick

adr0ck wrote: »

Both Bank of Ireland and Abbey offering 95% LTV for first time buyers

Well is suppose it was only a matter of time especially with the pressure from the government, just after the new year there will be 100% mortgages available again.

mewbie_2

What I find a bit scary, honest, is that if mortgages do become available and people jump in with interest rates at an all time low - then when interest rates rise, as they will have to, and taxes rise as they will have to - new entrants to property could find themselves in trouble. I do hope the banks continue to apply their new found care when granting mortgages, and take time to explain in simple terms what happens when 1% base rates become 5-6% base rates.

mr.broderick

mewbie wrote: »

What I find a bit scary, honest, is that if mortgages do become available and people jump in with interest rates at an all time low - then when interest rates rise, as they will have to, and taxes rise as they will have to - new entrants to property could find themselves in trouble. I do hope the banks continue to apply their new found care when granting mortgages, and take time to explain in simple terms what happens when 1% base rates become 5-6% base rates.

check out the felixstowe thread.

1echidna

worried_jim wrote: »

There is just as much money to lend to customers as there was last year, branches are just waiting for customers to come in and apply.

Nice public relations answer but are those that need them really able to get affordable loans as easily as they were in the past? (Sorry I find myself down the path of being a bank basher which is not my desire as I am sympathetic to the problems banks are in)

worried_jim

1echidna wrote: »

Nice public relations answer but are those that need them really able to get affordable loans as easily as they were in the past? (Sorry I find myself down the path of being a bank basher which is not my desire as I am sympathetic to the problems banks are in)

Yes absolutely, our lending criteria has not altered, if anything in certain circumstances it is easier than it was approx 2 years ago- its all media hype and there is very little difference to the person on the street, its just interbank lending which has nothing to do with the way funds are raised for unsecured loans or credit cards.

ad9898_3

With prices set to fall another 15% at least, you would have to be utterly insane to take a mortgage out at these LTV's, in 12 months you could have lost your job, your 5% deposit and have 10% negative equity. Not nice.

As someone else as already said, as an FTB, I think I'll pass.

Cat695

Its pretty simple (has to be for me to understand it) as I've mentioned in other threads......banks would rather you be paying then repo the property....they still make money out of you...and if they do repo it after you have taken out another mortgage then they will still sell it at a loss and come after you for even more.

With Job losses starting to take hold this COULD make things worse...though it does buy people a little breathing space

slipthru

ad9898 wrote: »

With prices set to fall another 15% at least, you would have to be utterly insane to take a mortgage out at these LTV's, in 12 months you could have lost your job, your 5% deposit and have 10% negative equity. Not nice.

As someone else as already said, as an FTB, I think I'll pass.

Could this not just reverse the falls and inflate the bubble a little more? and essentially put off the pain of repossession to a few years further down the line, when interest rates or more certainly tax rates get hiked.