Chelsea 2yr fixed - over 100% LTV

Blacklight

I was just looking at interest rates on offer from various people at the moment and I stumbled on this offer from Chelsea Building Society for people that want to borrow more than 100% of the value of their house.

Looks like >100% mortgages are making a comeback.

ess0two

let the frothing begin..........

arby

it's only for existing borrowers of chelsea. ie, for people who already have a mortgage of more than 100%. there's a massive difference in what you're suggesting is going on vs the reality.

Orpheo

Blacklight wrote: »

I was just looking at interest rates on offer from various people at the moment and I stumbled on this offer from Chelsea Building Society for people that want to borrow more than 100% of the value of their house.

Looks like >100% mortgages are making a comeback.

Of course anybody who cares to read the fine print, which I can imagine is a minority of mortgagees, will see that this is a loan product for existing borrowers, and only those existing borrowers that are deemed to not be a bad risk, to refinance their negative equity at an IR of 5.99% reverting to a current SVR of 5.79%. But why let the facts get in the way?

nearlynew

Looks like this is not the deal it first appears.


Unlucky debt-junkies.

the_flying_pig

arby wrote: »

it's only for existing borrowers of chelsea. ie, for people who already have a mortgage of more than 100%. there's a massive difference in what you're suggesting is going on vs the reality.

exactly.

it's only for people who are already borrowers with Chelsea & [for 100%+ LTV] who are in NE.

they'll give you a fix at 6%. hardly a return to 'the good old days'...

chucky

arby wrote: »

it's only for existing borrowers of chelsea. ie, for people who already have a mortgage of more than 100%. there's a massive difference in what you're suggesting is going on vs the reality.

to be fair i'd imagine it allows those in negative equity to be able to move from the property they would have been stuck in under their current mortgage deal with the Chelsea..

it's not 2007 levels but no-one can deny it's not a step forward

arby

why is it a step forward? of course the banks will do this- it doesn't change their risk profile or exposure, all it does is lock people in at a high rate and they get the mortgage set up fee on top.

chucky

arby wrote: »

why is it a step forward? of course the banks will do this- it doesn't change their risk profile or exposure, all it does is lock people in at a high rate and they get the mortgage set up fee on top.

it gives people a further choice (good or bad? - not for me or you to decide unless you're in negative equity).

previously they would not have had this option and their choices were restricted, they were stuck. at least now they have choices.

why don't you think it's a step forward?

Generali

chucky wrote: »

to be fair i'd imagine it allows those in negative equity to be able to move from the property they would have been stuck in under their current mortgage deal with the Chelsea..

it's not 2007 levels but no-one can deny it's not a step forward

It's a good piece of thinking IMO. If someone's in negative equity with you then why hold them to a specific mortgage with you. Let them port to another product, especially a fixed rate one where you get to charge a bunch of fees.

I notice in the T&Cs you have to have had no arrears on the account (not no missed payments) in the past 12 months.

Graham_Devon

This was talked about and has been going on for a while hasn't it? May not have been with the same building society, but there were the same type of product for those with over 100% mortgages before. We talked about them on here.