The Return of 5% Deposit Mortgages

Rinoa

http://www.lovemoney.com/news/property-and-mortgages/mortgages/13146/magnificent-mortgages-with-a-5-deposit?source=uoofolrf0010002

It is no longer the case that the absolute minimum deposit required by lenders is 10% of the property price. According to lovemoney.com partner Moneyfacts, there are now seven that offer mortgages on a national basis exchange for a 5% deposit. These are Clydesdale and Yorkshire banks (the same lender) and Melton Mowbray, Ipswich, Saffron, Shepshed, Skipton and Mansfield building societies.

None of these 95% deals are shared equity schemes and none require input from your family, such as surrendering their savings to the lender or putting up their own home as security. They are all just regular mortgage deals.

Rates still a tad on the high side, but evidence of a further thaw in lending practices nonetheless.

the_flying_pig

It's started.

Seriously, haven't you posted this exact same thread at least once a month for at least the last 18 months?

Rinoa

the_flying_pig wrote: »

It's started.

Seriously, haven't you posted this exact same thread at least once a month for at least the last 18 months?

I've posted links to a general easing of lending on several occasions. It's taken some time to get this far and there is still some way to go.

But lenders are now seriously competeing for business and offering better deals. I used to post about 10% deposit mortgages becoming more commonplace, now it's 5% deposit mortgages.

zappahey

And yet

Richard Sexton, from chartered surveyors e.surv, said lenders were already moving away again from lending to people with small deposits.
"With the supply of credit so restricted, there is almost no scope for them to grow their loan books, so they are understandably playing it safe and focusing on targeting borrowers with big deposits," he said.

http://www.bbc.co.uk/news/business-15382797

Can we draw the conclusion that no one really knows for sure?

Thrugelmir

Rinoa wrote: »

But lenders are now seriously competeing for business and offering better deals.

How seriously. Or is it just media savvy marketing. As a number of lenders listed only issue a very small number of mortgages a year in total.

However, all this good news comes with a caveat – which is that the risk of being rejected when applying for any high-loan-to value mortgage deal is high.
According to mortgage broker Andrew Montlake, a lot of lenders are playing the PR game by offering 90% or 95% mortgages. But in reality, a lot of applicants are not qualifying for the deals as lenders tweak the credit score criteria accordingly to control levels of business.

the_flying_pig

Rinoa wrote: »

I've posted links to a general easing of lending on several occasions. It's taken some time to get this far and there is still some way to go.

But lenders are now seriously competeing for business and offering better deals. I used to post about 10% deposit mortgages becoming more commonplace, now it's 5% deposit mortgages.

Quite.

Y'know, someone like Hamish, he very occasionally will post a contrary thread, something like a link to a monthly report showing falling prices, to, I suppose, give some kind of flimsy pretence of balance.

But with your threads it's just ramp-ramp-ramp-ramp-ramp-ramp.

http://forums.moneysavingexpert.com/search.php?searchid=113468275&pp=25&page=2

Although this is a 'debate' subforum, at the end of the day MSE overall is a message board where people look for advice on how to save money and whatnot, it does offend me a little bit, and do the 'community' a little bit of disservice, to see this pattern of behaviour, relentlessly ramping the inflationary view, without even the tiniest hint of a concession that there any alternative view view might have validity.

Thrugelmir

the_flying_pig wrote: »

Although this is a 'debate' subforum, at the end of the day MSE overall is a message board where people look for advice on how to save money and whatnot, it does offend me a little bit, and do the 'community' a little bit of disservice, to see this pattern of behaviour, relentlessly ramping the inflationary view, without even the tiniest hint of a concession that there any alternative view view might have validity.

Takes differing opinions to create debate. I'm sure Rinoa's views are shared by many. So good to have them publicly aired.

the_flying_pig

Thrugelmir wrote: »

Takes differing opinions to create debate. I'm sure Rinoa's views are shared by many. So good to have them publicly aired.

I don't think so. It's not a "view", as you put it, to only ever post inflationary news stories. It's just being incredibly selective. It'd be one thing to consistently post a particular opinion, i.e. a genuine view, recognising that, say, certain monthly bits of data may point in the opposite direction but believing that you'll be right in the long term, but when you're only really posting bits of news, facts, or occasionally other people's opinions it's fairly abysmal to be so selective. It's one of the most childish and tedious forms of ramping.

Like, say, if Hamish is posting about a monthly indicator he'll sometimes post every month's numbers.

But with Rinoa it's painfully selective. So if an indicator goes [say], month by month, -2%, +1%, -4%, +2%, -3%, +1%, clearly that's more down than up, but with Rinoa you know he'll only ever report the + figures, so it's just... it's almost like the Daily Express, such a ludicrous bias that you wouldn't even know if prices genuinely were going up because you know the reporting's so selective. Just a waste of time really. I'm fairly sure this is my first ever post on a Rinoa thread. They're just so ludicrous.

julieq

Lovely special pleading Flying Pig. WD.

Rinoa

the_flying_pig wrote: »

I don't think so. It's not a "view", as you put it, to only ever post inflationary news stories. It's just being incredibly selective. It'd be one thing to consistently post a particular opinion, i.e. a genuine view, recognising that, say, certain monthly bits of data may point in the opposite direction but believing that you'll be right in the long term, but when you're only really posting bits of news, facts, or occasionally other people's opinions it's fairly abysmal to be so selective. It's one of the most childish and tedious forms of ramping.

Like, say, if Hamish is posting about a monthly indicator he'll sometimes post every month's numbers.

But with Rinoa it's painfully selective. So if an indicator goes [say], month by month, -2%, +1%, -4%, +2%, -3%, +1%, clearly that's more down than up, but with Rinoa you know he'll only ever report the + figures, so it's just... it's almost like the Daily Express, such a ludicrous bias that you wouldn't even know if prices genuinely were going up because you know the reporting's so selective. Just a waste of time really. I'm fairly sure this is my first ever post on a Rinoa thread. They're just so ludicrous.

Hi FP

There are around 20 new topics a day. Maybe 6000 per year.

How many of those do you think I stated?

10.

My apologies if you feel unable to cope.

the_flying_pig wrote: »

http://forums.moneysavingexpert.com/search.php?searchid=113468275&pp=25&page=2

Your link isn't working.

the_flying_pig

Rinoa wrote: »

Hi FP

There are around 20 new topics a day. Maybe 6000 per year.

How many of those do you think I stated?

10.

My apologies if you feel unable to cope.


.
.
Your link isn't working.

Hmm - no, it's not possible to link to a search result. Anyway, here's page 1 of your list of topics started on the debate forum. Spot the agenda?

FT Acadametrics +0.5% MoM +12.9% YoY
Rinoa
Leeds: 5 year fix at 4.59% (1 2 3)
Rinoa
House hunters out in force (1 2 3 ... Last Page)
Rinoa
Repossessions and arrears continue to fall
Rinoa
February House Sales Double (1 2)
Rinoa
Residential Valuations soar 61% in February... (1 2)
Rinoa
Rates Tumble for 90% LTV's
Rinoa
HMRC Dec: 100,000 transactions
Rinoa
Rightmove: +0.4% MoM +4.1% YoY (1 2 3)
Rinoa
Rightmove Record Site Traffic (1 2)
Rinoa
This IS the market bottom
Rinoa
Competition Fuels Mortgage Cuts
Rinoa
BoE: Approvals up 5% to 60,518 (1 2 3 ... Last Page)
Rinoa
FT Index Dec: +0.8% MoM +4.2% YoY
Rinoa
BoE: Banks to lift Mortgage Supply in 2010 (1 2)
Rinoa
Nationwide +0.4 Mom +5.9% YoY
Rinoa
Land Reg. Nov: +0.9% MoM -0.3% YoY (1 2)
Rinoa