End to Interest Only Mortgages????

mbga9pgf

Ah, get you now!

julieq

Thrugelmir wrote: »

Unfortunately its the lenders that require regulation not the borrowers. Some of the problems that have arisen are the result of unsuitable product sales in the market place.

Well perhaps, but on the other hand since the FSA hasn't got any authority in the US where the so-called "toxic" assets that nearly brought down the banks came from, they're hardly in a position to fix things.

And interest only loans were never part of any problem here. 125% loans, arguably. High multiples, arguably. Self certificated loans, arguably, though there isn't really any evidence of vastly increased defaults in this country, nor is there any real evidence of increased default rates on high multiples. "Interest only" loans, not at all, and there's no reason why they should be.

lostinrates

lostinrates wrote: »

I viewed a house today where they said they have been IO since one of them was made redundant earlier this year. .....)

An update. DH and I said yesterday we thought it was overvalued compared to what we'd seen. We thought by a good margin

Checked LR thi morning: they want over 100k more than they paid at peak. Funny how quickly sympathy nd compassion can dwindle.:o:rolleyes:

Thrugelmir

chucky wrote: »

if they have money held on deposit they won;t need to go onto the money markets and will use whatever rate they believe they believe they can sell their mortgage products are, probably like HSBC.

HSBC pulls in deposits from the Far East where people save. :eek:

Retail deposits for the UK banks make up a very small % of what they've currently lent. Whereas going back some years this was how mortgages were funded. As is the case for the smaller building societies.