Debate House Prices
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Heads up - 100% mortgage imminent.
Conrad
Posts: 33,137 Forumite
According to 3MC, a new 100% mortgage product is about to be launched.
It has a catch - the lender will apparantly require a 25% charge over parents property, meaning only those with sufficient equity can stand behind the FTB mortgage.
I think we're going back to a Victorian property landscape where only the well off can buy a home, thanks to overly tight FSA regulation. Oh well, just a widening chasm between the have's and have not's but still, at least we'll have a few thousand less repo's per year, and that has to be more important than a egalitarian society, eh, where millions more would have at least had a stab at ownership.
It has a catch - the lender will apparantly require a 25% charge over parents property, meaning only those with sufficient equity can stand behind the FTB mortgage.
I think we're going back to a Victorian property landscape where only the well off can buy a home, thanks to overly tight FSA regulation. Oh well, just a widening chasm between the have's and have not's but still, at least we'll have a few thousand less repo's per year, and that has to be more important than a egalitarian society, eh, where millions more would have at least had a stab at ownership.
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A lot of the old have-nots, largely due to cheap credit, now have; but many of the haves are now unable to afford to be a have any longer and will end up being a have-not again. A lot of haves have a lot, and will be now be able to finance their little haves mortgages, whilst the have-nots and their little have-nots struggle.There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...0
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Not only do banks want to get kids into a lifetime of debt, they are now dragging their parents back into debt (well, those few parents who have actually paid down their mortgages).
It goes to show that, unlike the liars on here who reckon they paid off their mortgages in their mid 30's, most parents are still in mortgage debt to their eyeballs. Otherwise they would give their kids the 20% loan instead of putting their own property in as collateral and risking their own homes.
Idiots.0 -
Not really a 100% mortgage then is it.
The deposit is basically your parents roof. In the event of another crash, not only do you get wiped out, but your parents most likely find themselves paying rent on their own house. Genius. Now thats progress.0 -
Graham_Devon wrote: »Not really a 100% mortgage then is it.
The deposit is basically your parents roof.
HO! Another basket scored!
The bulls are being routed today. Nice one Graham!
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this is a good product.
it's a good idea, the more choice people have the better.0 -
Reminds me a bit of the recent entrants to BTL when they raise the deposit by remortgaging their present home and then convince themselves that they are making "X" amount on the rental, forgetting that they also have to pay back the deposit."The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0 -
What percentage of the value of the house you are buying do they lend you? Is it 100% ?Graham_Devon wrote: »Not really a 100% mortgage then is it.0 -
Only a matter of time before proper 100% mortgages return. The government and FSA will say lessons have been learned from last time, it'll be regulated properly (yeah right) and these innovative products are needed to help poor first-time buyers.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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