Gordon Brown to bar 100pc mortgages

Jonbvn

Just saw this on the Torygraph site. Not often I agree with this gov't, but does seem like a good idea, although perhaps a few years too late.

http://www.telegraph.co.uk/finance/personalfinance/4743445/Gordon-Brown-to-bar-100pc-mortgages.html

koexelek

He's just trying to make sure he gets the lender's votes in the next election:rotfl:

roddydogs

"Closing the Door after .............................comes to mind!

black_taxi_2

he didnt say 125%

thats his get-out clause

Ian_Griffiths_Halifax

100% mortgages have been around for decades. They are fine so long as they are at sensible income multiples. When you get to the point where such as Bristol & West were allowing income multiples including parents income, that's dangerous.

Robert_Sterling_3

In "the good old days" you had to have been a member of a building society for six months before you could apply for a mortgage.

DON79

I don't think that 100% mortgages are bad at all as long as they are sensibly offered. The two times I have bought a home have both been on a 100% mortgage - first one a two bed flat in scotland £25,500 - now worth about £60,000 so that was a good buy. Second time around 100% for 102,000 on three bed end of terrace - It is now in neg equity but as we have no plans to move anyway, we do not care.

Without 100% mortgages we could not have gotten our own home - so I don't agree that completely banning them is a good idea. With the amount of deposit that is needed at this time, that is what will be putting many people off buying a home - because they just cannot raise such a large deposit of the 25% needed.

125% mortgages should definitely be banned I believe.

dunstonh

125% mortgages helped end the last recession and house price crash by allowing people in negative equity move house. Banning them altogether will mean that it will take longer to recover. Effectively, this sounds like an attempt at being a vote winner rather than a sensible action.

A higher regulated stance with mortgages over say 90% needing higher standards should have been put in place. The problem wasnt the 125% mortgage itself but giving 125% to people that shouldnt have had it. There were plenty of people that could afford it and it would have been the right thing to do.

maninthestreet

There aren't any 100%+ mortgages currently available.

Robert_Sterling_3

Can I get a 99.9% mortgage?

Gorgeous_George

My first mortgage was 100% in 1985. At the age of 22, I'd never saved for anything. In a rising market it isn't a problem.

I think married applicants should be allowed 100% mortgages and those just 'living together' should be limited to 90%. The Government should replace stamp duty with a 0.5% tax on mortgages based on the average outstanding balance each year. Maybe lift it to 0.75% for those who are not married.

Call me radical if you want.



GG