95% LTV is back

ad9898_3

adr0ck wrote: »

as long as people take the view that a home is for life and not just for Christmas then theres no problem

Sadly as with dogs, people tend not to feel that way, especially when the 'worth' of the house is evaporating and no more mewing is available

mr.broderick

Maybe they should ban people from buying and selling houses due to the risks involved and make everybody rent.

mewbie_2

mr.broderick wrote: »

Maybe they should ban people from buying and selling houses due to the risks involved and make everybody rent.

Or put huge pictures on the side of houses showing the possible dangers of negative equity.

worried_jim

Abbey has recently looked to capture a bigger share of the fixed-rate mortgage market. However, both Abbey and HSBC are cautious when it comes to lending to “risky” borrowers — they restrict the amount they will lend as a proportion of the purchase price to no more than 85%, demanding a deposit of between 20% and 40% for the best deals.
Lenders are reining in loans by adjusting the way they calculate how much new customers can borrow.
For example, last week Abbey increased the interest rate it uses to assess whether a borrower can afford the loan to 7% — it previously used the standard variable rate of 5.44%. The move will reduce the amount Abbey would lend to a borrower on an income of £50,000 by £30,000.