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Debate House Prices
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how long before the first 100% mortgage to return
Comments
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HAMISH_MCTAVISH wrote: »Because lending on unsecured loans for 20K is difficult to get. Most people can't get them, as the banks are rationing the limited pool of funds they have to lend.
And the interest rates payable these days for unsecured borrowing is often 15% or more..... Which is one of the ways banks ration the funds.
You're talking credit card rates nowadays for most people.... Which is a stupid way to borrow money that you'll take years to pay back.
Because they were hit hardest by LTV restrictions.
Although they've also recovered fastest lately as lending has eased slightly.
Therefore the lender will not give you a mortgage because you can't save the money and need to take a loan. The repayments are too much. I agree it is a daft way to try and get a deposit.0 -
Therefore the lender will not give you a mortgage because you can't save the money and need to take a loan. The repayments are too much.
Only if the repayments really are too much, and you don't fit the affordability criteria.
If the loan is interest free from family, or at a decent rate of interest from elsewhere, and even with the repayments you meet affordability criteria, then it's no problem.
And it's certainly not fraud or illegal as you initially stated.I agree it is a daft way to try and get a deposit.
At todays unusually high interest rates for unsecured borrowing, I'd agree.“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: »Because lending on unsecured loans for 20K is difficult to get. Most people can't get them, as the banks are rationing the limited pool of funds they have to lend.
And the interest rates payable these days for unsecured borrowing is often 15% or more..... Which is one of the ways banks ration the funds.
You're talking credit card rates nowadays for most people.... Which is a stupid way to borrow money that you'll take years to pay back.
Because they were hit hardest by LTV restrictions.
Although they've also recovered fastest lately as lending has eased slightly.
Not sure where you get that from.
I'm looking and pondering whether to get a loan for the car I really would prefer, or stick to cash and go for something less.
The loan is 7.1%. Unsecured. Up to 15k.
And don't get too excited. I'm probably going to stick to cash. Though the 6 month old car has large benefits.0 -
Graham_Devon wrote: »Not sure where you get that from.
.
As of 2010 it had increased to 12.9%.
I recall reading somewhere it's still rising, and now pushing 15%.The research outlined in Defaqto’s latest banking report reveals that over the past 3 years, despite the bank base rate falling to a historical low of 0.5%, the average interest rate of an unsecured personal loan has increased from 8.8% in 2007 to 12.9% today.“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: »As of 2010 it had increased to 12.9%.
I recall reading somewhere it's still rising, and now pushing 15%.
Oh dear.
That includes credit card borrowing. I'm sure you know that, hence no link.
Unsecured loans were being talked about. Not credit card borrowing.0 -
Graham_Devon wrote: »Oh dear.
Oh dear indeed.That includes credit card borrowing.
No it doesn't. Personal loans only.I'm sure you know that, hence no link.
Here's a link.
http://www.defaqto.com/news/unsecured-lending-rates-increase-despite-low-base-rateUnsecured loans were being talked about. Not credit card borrowing.
Yes.
Which is why I quoted the rate for personal loans only.
Credit cards are higher still.“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: »No it doesn't. Personal loans only.
No, thats fair enough. I read another article, which didn't include the table above.
It's strange though. Halifax are not known as the cheapest provider, but their £15,000 loan over 5 years is 8.8%.
http://www.halifax.co.uk/loans/personalloanshome.asp
A&L 8.5
Tesco 8.5
Sainsburys 8.3
HSBC account holders, 7.50 -
Hamish is quoting the average. Graham is quoting the best rates on offer (even if just best rates from a lender, E.g. Halifax headline rate is 8.8%, but many won't get that rate). Hence why your numbers look so different.0
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Graham_Devon wrote: »Halifax are not known as the cheapest provider, but their £15,000 loan over 5 years is 8.8%.
And that would be why they put the "subject to status, individual rates may vary" clause in their advertising.
“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 -
poppingjay wrote: »Few houses are repossessed though so I'm sure the banks do very well in the scheme of things, coupled with the fact that laws seem to be written with the protection of the corporations in mind.
I don't know quite why you say that - consumer protection has grown massively and it's actually much harder for a bank to repossess than it used to be....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0
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