Over 50's will bit hit by new mortgage regulations

grizzly1911

michaels wrote: »

Yes please, my mortgage lender accepts credit card payments if you are in arrears - I could make 6k cashback

How big is your credit limit:eek: just think of the APR and the handling fee.

Thrugelmir

michaels wrote: »

Yes please, my mortgage lender accepts credit card payments if you are in arrears - I could make 6k cashback

Would be a cash advance though.........

Loughton_Monkey

At one level, I cannot personally be 4rsed about this since I already have a mortgage. I have the cash to pay it off in full when I'm 65 but some years later, I will downsize and then want a Lifetime Mortgage on the smaller one, simply to "spend it" to minimise my estate.

I am hoping that these will still be 'alright with the police' when I want it!

grizzly1911

Thrugelmir wrote: »

Time has moved on. The events of the crash are over 4 years ago. All the major banks have new management. Not just at board level. But risk managers etc. The ethos is changing in the banks.

Lending policy is tightening in a sensible manner. This will take time to filter through and impact the property market.

Similar to the way things used to be perhaps.

Funny how the older risk managers said it would all end in tears, as the sales guys took front stage, and they took their V

I know they need sales to make money but more sense is needed in how they achieve them. 5 good ones are probably better than 20 poor ones where 2/3 go bad. The strategy of bundling them up and passing them on can only work for long.

Graham_Devon

Update:

It's all been watered down. Interest only can still be offered. People can still take mortgages into their "twighlight years" and lenders have been told not to abandon people in trouble.

So it's all been turned on it's head.

Instead "hard wired common sense" will be demanded by regulators, which I guess will suit everyone, so long as it's actually done, and not abused again.

Mortgages will take longer to get. They will be more expensive. It's likely borrowers will have to sit down with financial advisors in order to get through to the offer stage.

If lenders come across someone who is in trouble with their mortgage, they can ignore the new rules, and offer them products, so long as they don't borrow more. I guess this is aimed at protecting the low repo numbers.

So to reitterate. No ban on interest only. No age ceiling. No upper limit on borrowing (salary vs price). No pressure to wipe out small deposit mortgages.

One commentator has simply said this was a collosal waste of money, as this has already been done by lenders, and once again, the FSA has backed out of actually implementing anything that's not already been implemented.

http://www.thisismoney.co.uk/money/mortgageshome/article-2222590/MMR-Interest-mortgages-stay-execution-new-rules-save-mortgage-prisoners.html

ShAnE

http://www.dailymail.co.uk/news/article-2222737/Misery-mortgages-paid-FSA-report-reveals-deals-turned-100billion-time-bomb.html

The story about the woman on £13,000 a year !!!!!ing and moaning that she can't afford her £120,000 home. Yet will continue to live there until her IO mortgage expires is disgraceful, and as a result I welcome this clamp down on IO mortgages.

People wonder why I hate previous generations? When will they stop wanting everything given to them on a plate, and when that plate is empty when will they stop picking off the plate of the young workers of the UK?

Eellogofusciouhipoppokunu

ShAnE wrote: »

http://www.dailymail.co.uk/news/article-2222737/Misery-mortgages-paid-FSA-report-reveals-deals-turned-100billion-time-bomb.html

The story about the woman on £13,000 a year !!!!!ing and moaning that she can't afford her £120,000 home. Yet will continue to live there until her IO mortgage expires is disgraceful, and as a result I welcome this clamp down on IO mortgages.

I don't see what business it is of yours what this woman does? She isn't receiving any tax money to keep her in her home, so her mortgage problems are her own, not yours.

Percy1983

Eellogofusciouhipoppokunu wrote: »

I don't see what business it is of yours what this woman does? She isn't receiving any tax money to keep her in her home, so her mortgage problems are her own, not yours.

Well she did decide to tell us.

In many respects its like legalised squating, she is sat in house she can't afford.

Mr._Pricklepants

ShAnE wrote: »

People wonder why I hate previous generations? When will they stop wanting everything given to them on a plate, and when that plate is empty when will they stop picking off the plate of the young workers of the UK?

Calm down.
I am part of that generation you hate so much.
But believe me or not, we weren't giving anything on a plate. What I got is the result of almost 40 years hard work, starting from scratch, yes, I still remember the days living with wife and firtborn in a one bed terraced. Back then, we weren't looking with envy and hate to those older or better off than us. We got on with it, improved our lives and moved up the ladder. What's your story so far?

Eellogofusciouhipoppokunu

Percy1983 wrote: »

Well she did decide to tell us.

In many respects its like legalised squating, she is sat in house she can't afford.

She is still paying the interest on the mortgage, which equates to paying rent, so it's pretty much nothing like squatting is it?