Heads up - 100% mortgage imminent.

Cleaver

Graham_Devon wrote: »

Due solely to the taxpayer, and low interest rates. Would have been carnage otherwise.

Indeed. Which is why I said that banks probably have no regret providing these products.

Graham_Devon

Cleaver wrote: »

Indeed. Which is why I said that banks probably have no regret providing these products.

True enough!

AndyGuil

Default and they get 2 houses for the price of 1. That is lower risk for them than a 10% deposit. It is not a step towards riskier lending, they can't offer anymore now. Rates are set to go up, house prices falling and the economy is stagnant for the time being.

Cleaver

Cleaver wrote: »

Indeed. Which is why I said that banks probably have no regret providing these products.

I should probably add that I don't fully agree that it was solely down to low interest rates and the taxpayer. I think the major factor in banks not regreting 100% mortgages, or indeed any other type of mortgages, is the fact that most people have stayed employed and continued to pay their mortgages without any real issues. Obviously you're correct Graham in saying that massive taxpayer bailouts and low interest rates haven't hurt either.

Herbie_Hancock_I_wish

My , my , so many doomers here . I think that they should bring back the Northern Rock model of 125% mortgage , loan to value .

Clearly worked a treat, Mr Applegarth, 46, is entitled to retire on a £305,000 a year pension from the age of 60, a benefit with the equivalent lump-sum value today of £2.6 million.

So he must have got it right . Ahem.

Emy1501

On the face of it looks a pretty decent idea in letting the parents take the gamble. I suspect though that the rates will be sky high but if they are within the 1% or so of normal 75% mortgages then could be a good product.

As the OP says though more evidence of the have's benefiting over the have not's It will be interesting when people actually wake up and realise what is happening and whether this will be before or after the economy is fixed

silvercar

As a parent do you allow your house to be security or would you be better off remortgaging yourself and letting your offspring borrow the 25% from you. The offspring will be paying the same whether it is 100% to the lender or 75% to the lender and 25% to you.

Chances are you could get a much better deal with a 75% LTV on your own home and very low LTV on parents home than this 100% with added security deal.

zappahey

And yet, the Halifax says the days of 100% mortgages are over
http://www.bbc.co.uk/news/business-13575857