UKs biggest lender ends IO mortgages without evidence.

Graham_Devon

DervProf wrote: »

Good news for those who want them and qualify for them. Hopefully good news for the taxpayer too.

To imply that Lloyds are encouraging IO loans, because they are increasing the limit, might be misleading. I think this change of policy should be considered with other changes they are making.

It's pretty much the same thing. Raise the cap, but make sure controls are in place. Makes little difference really, as not many will be taking million pound mortgages. Sure Hamish will get excited about it though!

“The initiatives have resulted in improved controls relating to this type of lending; they include a defined list of acceptable repayment vehicles and a process whereby borrowers provide evidence of a repayment vehicle both at application and throughout the life of the mortgage.

“As such protective measures are now in train in branches we are well placed to amend the maximum loan limit in place for interest-only lending.”

DervProf

Graham_Devon wrote: »

Sure Hamish will get excited about it though!

So he should be. If he is so sure of his predictions, he should fill his boots (like he advised on gold, back in January). Hamish could make a fortune, but I suspect he'll claim he is not that greedy. Here's an idea for Hamish, invest more in property, make a profit, and donate that profit to charity. Now that's a win-win-win situation.

1. It shows the courage of his convictions (win).

2. It proves his predictions (win).

3. It shows that it's not all about his own greed (win).

Pimperne1

DervProf wrote: »

So he should be. If he is so sure of his predictions, he should fill his boots (like he advised on gold, back in January). Hamish could make a fortune, but I suspect he'll claim he is not that greedy. Here's an idea for Hamish, invest more in property, make a profit, and donate that profit to charity. Now that's a win-win-win situation.

1. It shows the courage of his convictions (win).

2. It proves his predictions (win).

3. It shows that it's not all about his own greed (win).

I think you are doing Hamish a disservice here. He is not coming on here to suggest that he is going to make a further killing out of the market he is here to give the benefit of his advice to others who might be swayed if they only listened to the bears. Its more of a public service.

Anyway I only mention the Lloyds increase on here because the initial thread title "UKs biggest lender ends IO mortgages without evidence" might lead one to believe that they thought they were in some way problematic - on the contrary, if you can prove you have a repayment vehicle not only are they not problematic they are worthy of a larger loan.

Graham_Devon

Pimperne1 wrote: »

I think you are doing Hamish a disservice here. He is not coming on here to suggest that he is going to make a further killing out of the market he is here to give the benefit of his advice to others who might be swayed if they only listened to the bears. Its more of a public service.

Charitable kinda fella is our Hamish.

Argues with the same people, day in day out, on a hidden forum. His charity knows no bounds. Maybe, just maybe, one day, someone might just stumble upon this forum, on the verge of buying, see Hamish's advice, and jump onto that boat.

They may have missed this boat, which never seems to set sale, if it wasn't for Mr Selfless.

DervProf

Pimperne1 wrote: »

on the contrary, if you can prove you have a repayment vehicle not only are they not problematic they are worthy of a larger loan.

As long as that vehicle isn't a Ford "My house will be worth a lot more than the outstanding loan, so what's the problem ?" 1.6iou

Cleaver

Graham_Devon wrote: »

Charitable kinda fella is our Hamish.

Argues with the same people, day in day out, on a hidden forum. His charity knows no bounds. Maybe, just maybe, one day, someone might just stumble upon this forum, on the verge of buying, see Hamish's advice, and jump onto that boat.

They may have missed this boat, which never seems to set sale, if it wasn't for Mr Selfless.

I think it would be best that we all hope and prey that a potential house buyer, who is undecided about whether to buy a house or not, never graces this forum. Let's face it, it's normally just extreme advice from both ends of the spectrum isn't it? Very little in terms of the sensible, middle ground of caution mixed with realism which is what most people tend to be out in the real word.

DervProf

Cleaver wrote: »

Very little in terms of the sensible, middle ground of caution mixed with realism which is what most people tend to be out in the real word.

Any person living in the real world who takes advice from here is not living in the real world, IMHO.

Cleaver

DervProf wrote: »

Any person living in the real world who takes advice from here is not living in the real world, IMHO.

Agreed. Both in terms of the incredibly pessimistic posters and the incredibly optimistic posters. There doesn't seem to be many inbetween here, although both camps I've listed will feel that they're in the middle ground section. They're obviously not.

geneer

HAMISH_MCTAVISH wrote: »

Nope. Just based on typical rents for similar houses in Aberdeen..... Not that I'm stupid enough to pay rent.

Sorry. I forgot that interest payments aren't a measurable expense in bull land. :T

HAMISH_MCTAVISH wrote: »

And we can't all live in our Mum's spare room like you geneer....

Actually I was living rent free with your mum.
On account of services rendered.

Cleaver

geneer wrote: »

Actually I was living rent free with your mum.

Very childish I know, but it'll be a cold day in hell when I don't laugh at a good old 'your mum' gag.