NR's 90% LTV is about to be unleashed.....

ad9898_3

Only those with spotless credit ratings and able to withstand the probable 6% interest rate need apply. As I said when this was announced with a big fanfare from the government, it would lead to very little or nothing in real terms. Seems I wasn't far off.

Analysts have pointed to the Northern Rock deal as an example of the manner in which the market has changed of late. Quite clearly, anyone wanting to take out a 90% mortgage will have to be absolutely spotless in terms of credit rating, and will likely find they are paying way over the bank rate. A figure of six percent has been mentioned, making these deals at least fiver percent above the bank base rate.
Although research has found there are some 25 mortgage deals available that offer a 90% loan, it is quite clear that these are at very high rates. Not only that, but consumers have reported a distinct reluctance by the banks to grant them and told of many obstacles being put in the way in order to make them nigh on impossible to get.

http://www.hip-consultant.co.uk/blog/northern-rock-announces-90-mortgage-123/

ad44downey

I don't think they should be allowed to lend anything ever again. They've shown themselves to be one of the most foolish and irresponsible lenders in UK history.

lonestar1

Surely as a nationalised bank they'll be mirroring the BoE base rate as SVR ?

ad9898_3

ad44downey wrote: »

I don't think they should be allowed to lend anything ever again. They've shown themselves to be one of the most foolish and irresponsible lenders in UK history.

Most of the 90% LTV's currently available are on or around those terms, because NR are government owned, they couldn't 'undercut' these deals otherwise the EU would come down on Brown like a ton of bricks. (pun intended:D).

It seems those who were hoping for 'just above base rate' for 90% LTV are going to be sadly disappointed.

ad9898_3

lonestar1 wrote: »

Surely as a nationalised bank they'll be mirroring the BoE base rate as SVR ?

I take it that was a joke, if it was, very funny, if not...... oh dear, read my above post about the EU.

baileysbattlebus

lonestar1 wrote: »

Surely as a nationalised bank they'll be mirroring the BoE base rate as SVR ?

they aren't allowed to be too competitive.

Dan:_4

Actually, for such a high LTV, 6% ain't bad and if you could get it fixed for say 5 Years, i'll say it's a pretty good deal all round - even back in 2007.

ad9898_3

Dan: wrote: »

Actually, for such a high LTV, 6% ain't bad and if you could get it fixed for say 5 Years, i'll say it's a pretty good deal all round - even back in 2007.

My guess is a 5 years fix at 6% on a 90% LTV would be a little optimistic, but hey we will see I guess. It's the taxpayers money so if it wasn't for the EU, Brown would be telling them to lend at 0%, just to get some votes.

chucky

ad9898 wrote: »

My guess is a 5 years fix at 6% on a 90% LTV would be a little optimistic, but hey we will see I guess. It's the taxpayers money so if it wasn't for the EU, Brown would be telling them to lend at 0%, just to get some votes.

borrowers at 90% shouldn't be that fussy at the moment - comparing to 2007, it's only above 90% LTV that the number of mortgage products is reduced. it's going to be like that for the forseable future.

it's interesting the number of Fixed rate deals compared to SVR is larger

Dan:_4

ad9898 wrote: »

My guess is a 5 years fix at 6% on a 90% LTV would be a little optimistic, but hey we will see I guess. It's the taxpayers money so if it wasn't for the EU, Brown would be telling them to lend at 0%, just to get some votes.

I don't see a reason why they wouldn't

mbga9pgf

Perhaps they know interest rates will be in double digits again in 5 years being government owned and all?