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Debate House Prices
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100% mortgages - it begins!
Comments
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I'd like to see the average person on the average wage trying to get this.
Anyway good bit of advertising by a Northen Ireland bank. Might get a few customers through the door to buy one of their other products instead0 -
I think the economy needs 100% mortgages personally.
Otherwise the rich get richer while the poor get poorer!
House buying is the future that gives you purpose, without it, you get riots.Plan
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)0 -
HAMISH_MCTAVISH wrote: »This is a non-issue.
Prices can fluctuate 5% between winter and summer in some areas.
It's not LTV that causes default, it's almost always unemployment. And if you have no money coming in, you won't be able to afford a mortgage at 100% LTV any better than a mortgage at 90%, or 80%.
As for bank losses, with a default rate of less than 1%, and given the other costs involved in repossessing, the LTV difference between 90% and 100% matters little.
In terms of the hit the bank takes, the difference is likely to be substantial.
If you get repossessed then you won't just owe the outstanding balance of your mortgage, you'll also owe the arrears, possibly fines, court and sales costs and fees. If you owe 100% of the value of the house, all of those are potential losses to the bank. If you owe 90% of the value of the house the bank will most likely get all its money back unless interest rates are very high.HAMISH_MCTAVISH wrote: »You're talking changes to a banks overall bottom line of a few hundredths of a percent.
Usually yes, I agree. I think events over the past 4 years have shown the difference quite starkly between 'usually' and 'always'.0 -
And it can demonstrate that the potential borrower does have some financial discipline.
There is little doubting the borrower will be pushed through the 'credit check' agencies.
Everything will come up. Been turned down for an insurance product; a mobile phone; had a month where you couldn't pay for something; working on temporary contracts a lot?
Only the squeaky clean need apply.0 -
I think the economy needs 100% mortgages personally.
Otherwise the rich get richer while the poor get poorer!
House buying is the future that gives you purpose, without it, you get riots.
Are you saying that the recent riots were caused, at least in part, by young people feeling left out of the property market ? I did ask if this might be the case a couple of days ago. I think the majority opinion was that the rioters were simply vandals and troublemakers.
Anyway, if we did have widespread 100% mortgages, what would happen ? I tell you what would happen, house prices would rise to accommodate the higher number of buyers in the market. Once house prices "absorb" this extra finance in the market, what next ? I suppose we'll be back to where we are now - only those with savings + a 100% mortgage will stand a chance of buying.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
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I agree somewhat, but prices dont have to increase for their to be a healthy market, they can remain the same, and stable and this is healthy.
I think we have a social underclass, I can't believe what some of the interviewee's were saying on the news, like its to be expected people would do this, im afraid, social benefits should not be a lifestyle choice, its just a bit of help to keep your head above water. Labours benefits give people this option in life and they are not appreciating having it inflated away like is happening now.Plan
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)0 -
You'd think they'd be smashing up banks if that were true. Not robbing Poundland.
They have been smashing up the banks!Plan
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)0 -
I am only too keen to see nil/low deposit mortgages come back into the markets. At the moment, my boyfriend hasn't got any disposable income to save so its all down to me and at this rate I'll be saving for another 2-3 years before I can get a decent deposit together.0
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