Heads up - 100% mortgage imminent.

pwllbwdr

Graham_Devon wrote: »

Only if you have the security (deposit) of your parents roof.

Graham, security is NOT the same as a deposit.

abaxas

pwllbwdr wrote: »

Graham, security is NOT the same as a deposit.

But, it can be the same thing.

Graham_Devon

pwllbwdr wrote: »

Graham, security is NOT the same as a deposit.

Everyone knows that.

But seems 9 others were able to grasp my point without too many issues

nicko33

Graham_Devon wrote: »

Only if you have the security (deposit) of your parents roof.

So it really is a 100% mortgage. No cash deposit required. Only different from older 100% mortages in that more security is needed.

Loopgames

My first thought was wow - this is a sign that the economy and specifically property is getting out of its low point. But then reading that you need 25% collateral from parents home confirms to me that it has an even longer way to go!!

Imagine that! The banks are unbelievable. This is an awful scheme. No doubt we will all be desensitised soon once it's in the mainstream. And blaming the gullible young home owners for buying into it.

abaxas

Loopgames wrote: »

My first thought was wow - this is a sign that the economy and specifically property is getting out of its low point. But then reading that you need 25% collateral from parents home confirms to me that it has an even longer way to go!!

Imagine that! The banks are unbelievable. This is an awful scheme. No doubt we will all be desensitised soon once it's in the mainstream. And blaming the gullible young home owners for buying into it.

:T

We could just build more homes.

PasturesNew

Graham_Devon wrote: »

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.

No worries... there'll be a bail out for that.

PasturesNew

chucky wrote: »

this is a good product.

it's a good idea, the more choice people have the better.

It's not choice though is it... it's underhand marketing, that'll have people using emotional blackmail to put a paid for house on the line.

dtsazza

Conrad wrote: »

I think we're going back to a Victorian property landscape where only the well off can buy a home

It doesn't seem that unusual to me that in order to purchase an asset worth hundreds of thousands of pounds, you need to have a few bob at your disposal.

There's no universal human right to own a home, or to be offered a loan. If two consenting parties are happy to agree to loan terms, that's great; but the baseline always will be saving up the money to buy the place outright. A mortgage just means the majority of this saving happens while living in the home, in the sense of paying off the mortgage capital.

DervProf

Just another product to mask the problem.

Just another product developed at the school of wizzo economics.

A 10% deposit to buy a typical FTBer property is not too much to ask. I saved a 15%(ish) deposit, and managed to buy. If I hadn't, I wouldn't have bought. 0% deposits will solve nothing, apart from take us one step closer to what Northern Rock were offering.