We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
how long before the first 100% mortgage to return
Comments
-
neverdespairgirl wrote: »A repossession always sells (almost always, anyway) for less than on the open market.
Plus the bank racks up fees and costs in repossessing.
So 100% mortgage won't cover the costs.
But an allowance for losses is factored into all lending. It's still massively profitable.
Example.
A bank lends 100 mortgages at 100% LTV of £100K at 5% interest.
Year one: Interest receivable = £500,000
One person defaults after paying only 6 months of interest.
Actual receipts £497,500
Sale of property nets only £90,000 in a falling market. Bank has lost 10K on that one property.
Receipts now £487,500 instead of £500,000.
Lending is no different from insurance in that regard, there will inevitably be losses, but the anticipated loss is factored into the price we all pay for the service.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »But an allowance for losses is factored into all lending. It's still massively profitable.
Example.
A bank lends 100 mortgages at 100% LTV of £100K at 5% interest.
Year one: Interest receivable = £500,000
One person defaults after paying only 6 months of interest.
Actual receipts £497,500
Sale of property nets only £90,000 in a falling market. Bank has lost 10K on that one property.
Receipts now £487,500 instead of £500,000.
Lending is no different from insurance in that regard, there will inevitably be losses, but the anticipated loss is factored into the price we all pay for the service.
I have to agree with you.... banking is a licence to print money
#20 - 52 week challenge 2026
#50 - 1p a day challenge 2026
Total Debt £21,946 (Jan)
Feb 26 £273/21,946 (1.24%)
0 -
My feeling is that 100% mortgages will be here as soon as it makes sense for the lenders to offer them. probably sooner than some on here think, but later than some on here would hope.
I have no problems with them in principle. Each mortgage application should be judged on its own merits (or lack of).Set your goals high, and don't stop till you get there.
Bo Jackson0 -
without knowing the legal ins and outs - an unsecured loan is an unsecured loan, a bank isn't able to put a limit on an unsecured loan amount for a customer.
They are not allowed to use the loan to fund a mortgage deposit. A bank will not issue the loan to fund the deposit and a loan taken with the intention of using it as a deposit is fraud.0 -
They are not allowed to use the loan to fund a mortgage deposit. A bank will not issue the loan to fund the deposit and a loan taken with the intention of using it as a deposit is fraud.
Link?
Source?
Evidence?
Because that's a crock of !!!!!!.
There's nothing illegal or fraudulent about using borrowed money to fund a deposit. So long as your financial position is accurately declared on the application.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Another discussion on this matter.
https://forums.moneysavingexpert.com/discussion/3122892
https://forums.moneysavingexpert.com/discussion/1918445
A loan obtained for something actually used for a mortgage,
http://www.mybrief.com/generalcrime.asp?type=63&p=Mortgage%20Fraud
Don't get me wrong you can have an unsecured loan and a mortgage but not an unsecured loan in order to get a mortgage.0 -
-
Loughton_Monkey wrote: »Who said it was?
What's getting easy?
They seem to think that you said it was.
It's spotting their internet superiority complex that's getting easier.Set your goals high, and don't stop till you get there.
Bo Jackson0 -
Don't get me wrong you can have an unsecured loan and a mortgage but not an unsecured loan in order to get a mortgage.
Untrue. There is no law saying that deposit monies have to be saved, not borrowed.
You just can't lie about it to the lender....
So for example, if I were to loan 50K to my brother for a deposit, and the lender asks about the source of funds, then he can't lie. The lender will take repayment of those funds into account for affordability calculations. But it's not illegal.
If I say to my brother that he doesn't need to repay the funds until the house is sold in the future, then there is no affordability problem either.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355K Banking & Borrowing
- 254.6K Reduce Debt & Boost Income
- 455.7K Spending & Discounts
- 247.8K Work, Benefits & Business
- 604.8K Mortgages, Homes & Bills
- 178.7K Life & Family
- 262.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards