BoE in favour of 100% Mortgages

tomterm8

There are scenario's where a 100 percent mortgage is not a particularly bad thing. For example, a 100% mortgage given to someone for tax reasons, when they are well able to pay in cash.

StevieJ

From the buyers point of view a 100% mortgage is fine as long as you don't pay a higher rate for it, the risk is with the lender.

Crabs

Women & Financial Planning do not go together !!!

themanbearpig

Crabs wrote: »

Women & Financial Planning do not go together !!!

I agree. 100% mortgages should only be available to men :beer:

robin_banks

The_White_Horse wrote: »

mortgages are 25 year products usually.

it is for the bank to assess the risk in a person. if they think the risk is not too bad ie juinor doctor, accountant, lawyer then why not lend them 100% in the hope they are decent people and their wages will increase.

then again, why should manual labourers and unskilled workers get 100% mortgages when the risk is so much higher.

the banks should be able to do what they like. BUT they have to take the losses.

Carpenters and brickies frequently get paid as well as accountants etc

Thrugelmir

themanbearpig wrote: »

Or more realistically, either lending £500k to a barrister, or 100k to 5 unskilled workers. The former would be much lower risk, as they have a very secure job, and high prospects of a significantly higher wage towards the end of the mortgage term. Whereas the unskilled workers prospects are much more unpredictable, and they have a high chance of being stuck on minimum wage until they retire. On a large scale, if a bank chose the later customers, it would be a sub-prime lender. Only a loan shark should pick the later, as they havn't got the lending capacity to spread their lending capacity to higher earners.

100% mortgages should be exclusive and must be discretionary, and only for hand picked customers. People that are on track to earning a very high salary (Doctors, Dentists, lawyers, accountants etc) . Not your average council worker, that will take 30 years to reach the UK average salary.

You can never assume that anyone is immune........ Announced in January 2009.

Europes's biggest firm of accountants is offering its staff sabbaticals or a four-day week as it braces itself for the recession.

KPMG yesterday made the proposal to its 11,000 British workers because it wants to avoid redundancies.

The firm told its employees that they can apply for between four and 12 weeks of partially-paid leave.


KPMG's London office in Canary Wharf: The firm has offered its 11,000 staff sabbaticals or a shorter working week
They also have the option of moving on to a four-day week, with the fifth day unpaid.

The scheme will be open to both partners and staff.

KPMG said its proposals were a 'contingency plan', and that staff were not being compelled to accept the proposition

tomterm8

Is sockpuppets running out of pictures of sockpuppets? We now seem to be getting Socks. Standards are falling.

trenchwars

The_White_Horse wrote: »

mortgages are 25 year products usually.

it is for the bank to assess the risk in a person. if they think the risk is not too bad ie juinor doctor, accountant, lawyer then why not lend them 100% in the hope they are decent people and their wages will increase.

then again, why should manual labourers and unskilled workers get 100% mortgages when the risk is so much higher.

the banks should be able to do what they like. BUT they have to take the losses.

Yes if they were allowed to go bust like any other company that engages in dodgy business practices. The government have made it clear that they will never allow this to happen, so the banks can do whatever they like. They are not taking the losses on these bad loans - we the taxpayer are. The only way to protect ourselves from this in future is to regulate them up the a**.