Official. No more Liar loans. Celf cert banned.

Conrad

HAMISH_MCTAVISH wrote: »

Arrears of 1.7% if no forbearance was shown instead of the current 1.2% doesn't seem like a disorderly market to me. Still, if you're desperate to clutch at straws, go right ahead.

Yes, and compared to some other nations our arrears level is modest. Furthermore the repossession level is very low and steady.

Geneer needs to start stretttttching that brain and reading beyond the simplistic articles produced by know nothing journalists that lack mortgage domain knowledge.

Again the proportion of self certs repossessed is surprisingly low.

The arrears need to be viewed in the context of a near global recession.

I'm not defending crooked mortgages, but I do like to see behind the simplistic headlines.

Conrad

DervProf wrote: »

creative mortgage products) is all well and good, but it is almost guaranteed to end in big financial problems.

Not really no, and THIS is the point.

People take a mental shortcut and 'believe' the Brittish mortgage market is / was in dire straights but this confusion seems to stem from the fact many Banks had exposure to the American sub prime market and that some UK players were reliant on borrowing from those American sources, but none of this means the UK lending enviroment was particularly risky, although some of it was, namely the 125% loans and some high loan to value sub prime.

Again the British mortgage market is well ordered by any measure.

Conrad

wotsthat wrote: »

Fast track means just that. People with high credit scores get moved along more quickly and without as many stringent checks.

Example of when fast tracking makes sense;


Applicant has had her mortgage 10 years, and simply wants to swap lenders to get a LOWER PAYMENT, without further borrowing.
She had demonstrated a long term ability to pay debts on time in full.

There is an overwhelming case to make the process as quick and 'electronic' as possible.

geneer

Conrad wrote: »

Not really no, and THIS is the point.

People take a mental shortcut and 'believe' the Brittish mortgage market is / was in dire straights but this confusion seems to stem from the fact many Banks had exposure to the American sub prime market and that some UK players were reliant on borrowing from those American sources, but none of this means the UK lending enviroment was particularly risky, although some of it was, namely the 125% loans and some high loan to value sub prime.

Again the British mortgage market is well ordered by any measure.

Brilliant. "Its all down to america". You are gordon brown and I claim my 5 pounds.

Seriously though, "uk lending environment wasn't particularly risky".

Please tell that to your clients at the start of the b*ll!!!!!!!! process and see how long your sales gambit lasts.

DervProf

Conrad wrote: »

Not really no, and THIS is the point.

People take a mental shortcut and 'believe' the Brittish mortgage market is / was in dire straights but this confusion seems to stem from the fact many Banks had exposure to the American sub prime market and that some UK players were reliant on borrowing from those American sources, but none of this means the UK lending enviroment was particularly risky, although some of it was, namely the 125% loans and some high loan to value sub prime.

Again the British mortgage market is well ordered by any measure.

People also take the mental shortcut and 'believe' the British mortgage market is/was well ordered, because if it wasn't for those naughty Americans, everything would be fine.

I take the mental 'longer route' and realise that if our mortgage market was so great, why did it have to resort to funding from such a dodgy source ? Without the need for ever higher lending, lower deposit requirements and other "suspect" practices, maybe out banks wouldn't have been so reliant on Uncle Sam and his funny money. No, our banks kept the credit floodgate open a little too wide and for a little too long, thus increasing the vulnerability to market conditions that were completely out of their control.