FSA backs down on tough lending rules

shortchanged_2

It really is a shame the FSA isn't banning IO mortgages either.

Well seeing as it doesn't look like that's happening I at least hope the banks are very, very stringent with who gets an IO mortgage. i.e someone that has a genuine repayment vehicle in place.

Lets hope the banks at least stop giving IO mortgages to people because that's all they can afford on the repayments.

chewmylegoff

Conrad wrote: »

What proportion of repos came from this sector

i dare say there would be a lot more if they paid the tax they owe.

chewmylegoff

shortchanged wrote: »

It really is a shame the FSA isn't banning IO mortgages either.

Well seeing as it doesn't look like that's happening I at least hope the banks are very, very stringent with who gets an IO mortgage. i.e someone that has a genuine repayment vehicle in place.

Lets hope the banks at least stop giving IO mortgages to people because that's all they can afford on the repayments.

nothing wrong with an interest only mortgage in my view, as long as there is a decent slug of equity in the property.

DervProf

Conrad wrote: »

Yep you really get the picture mate, you ignore the bit about people used to declare thier AFFORDABILITY of a given mortgage without mentioned an income figure.

What proportion of repos came from this sector Derv? You must know the impact given your distain for such products.

I don't know the answer to your question.

What I object to is that employed, tax paying individuals have to "compete" in the property market with tax dodging individuals who use mortgage brokers who, how can I put this, are a little more "flexible" in their approach to finding a mortgage deal.

shortchanged_2

chewmylegoff wrote: »

nothing wrong with an interest only mortgage in my view, as long as there is a decent slug of equity in the property.

You are probably right but I think historically, pre credit crunch they were severely mis managed.

Basically the banks were dishing them out to individuals because that was the only way they could afford to 'purchase' a property.

Problem is now many of these people are doing nothing more than renting from the banks as they are unable to pay off the capital at the end of the mortgage.

FTBFun

brit1234 wrote: »

West London

I bet I can find one.

Maybe a property not suitable for you, but for FTBs who will actually buy a property at some stage.

chewmylegoff

shortchanged wrote: »

You are probably right but I think historically, pre credit crunch they were severely mis managed.

Basically the banks were dishing them out to individuals because that was the only way they could afford to 'purchase' a property.

Problem is now many of these people are doing nothing more than renting from the banks as they are unable to pay off the capital at the end of the mortgage.

i'm sure that happened in some cases, i'm sure there were plenty of instances of people lying about having an adequate repayment vehicle in place etc. that's not a reason to ban interest only outright.

same with self cert. all these things have a place. it's what you term as the 'mismanagement' that is the problem, not the product.

shortchanged_2

chewmylegoff wrote: »

i'm sure that happened in some cases, i'm sure there were plenty of instances of people lying about having an adequate repayment vehicle in place etc. that's not a reason to ban interest only outright.

same with self cert. all these things have a place. it's what you term as the 'mismanagement' that is the problem, not the product.

I do agree with you, I suppose I have hard feelings towards IO mortgages because they certainly have been abused/mismanaged in the past.
With this in mind I also feel they helped fuel rampant HPI in the past.

chewmylegoff

FTBFun wrote: »

I bet I can find one.

Maybe a property not suitable for you, but for FTBs who will actually buy a property at some stage.

rightmove says 815 properties under £250,000 in "west london". i'm sure there's something suitable in there. i can't be bothered to look at them all, but there's a nice 2 bedroom flat in knightsbridge for £250,000. admittedly there's no share of freehold and only 4.5 years left on the lease, but i still think it represents a good opportunity...

julieq

DervProf wrote: »

I don't know the answer to your question.

What I object to is that employed, tax paying individuals have to "compete" in the property market with tax dodging individuals who use mortgage brokers who, how can I put this, are a little more "flexible" in their approach to finding a mortgage deal.

+1 on that, especially given the b0llocks your average black cab driver will give you on banker scum and their bonuses. At least bankers pay tax by and large...