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What percentage of mortgages issued should require only a 10% deposit?
Comments
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HAMISH_MCTAVISH wrote: »I was offered a 95% mortgage in 1990, my parents were offered a 95% mortgage in 1967, and 100% mortgages were available at least as far back as the early 1980's.
However 90% mortgages were on offer from the 1930's onwards.
In fact, Taylor Woodrow offered the "Wonderhouse" in 1935 for £445, and the initial deposit required was just £25. So around 6%.
Is that long enough for you?
If you prefer we can go back to the late 1800's, when Cadbury offered mortgages to his workers at 3.5% interest, with only a minimal deposit required...;)
That would be the nice, quaker, Mr. Cadbury who built a nice little village for his tied workers no doubt. It was to comprise of decent quality homes, at prices within the reach of the industrial workers, cost apparently. A benevolent employer not really a straight comparison but if it fits your argument.
I await your answer to the other question."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
A moderate amount.... 30%grizzly1911 wrote: »I await your answer to the other question.
Which one?Where do you get this presumption from?
The facts. As noted above.Do you come from an bank building society underwriting policy background.
Nope.
But there are plenty of sources illustrating my point.
Here's one noting the availability of 94% mortgages in the 1930's.
http://www.pre-war-housing.org.uk/chapter-3-financing-the-building-boom-making-it-easy-for-the-lower-paid-workers-to-become-home-owners.htm“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Which one?
The facts. As noted above.
Hamish you've missed out the fact that they'd have to have purchased a Mortgage Indemnity Guarantee (MIG)0 -
mystic_trev wrote: »Hamish you've missed out the fact that they'd have to have purchased a Mortgage Indemnity Guarantee (MIG)
Also that lending multiples of salary were far lower back them .
2.75 times joint or 3 times plus one were nearer the mark.0 -
A moderate amount.... 30%mystic_trev wrote: »Hamish you've missed out the fact that they'd have to have purchased a Mortgage Indemnity Guarantee (MIG)
Not in 1935.
And actually, I have no objections to MIGs, particularly if ti will allow banks to bypass capitalisation requirements, as it should.
Works well in Canada and Australia.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
A moderate amount.... 30%Thrugelmir wrote: »2.75 times joint or 3 times plus one were nearer the mark.
When base rates had a reasonable prospect of hitting 15%.
Whereas today it's more likely they'll not rise as high as 5% than hit 15% within the term of a mortgage today.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
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But the fact is that lending multiples are still between 3 times and 3.5 times salary at peak and probably less now. What was your point?Thrugelmir wrote: »Also that lending multiples of salary were far lower back them .
2.75 times joint or 3 times plus one were nearer the mark.
It's always good to deal on facts not forumonics.0 -
A moderate amount.... 30%It's always good to deal on facts not forumonics.
Very true.
But if facts were all that was allowed to be posted, most of our bears would have nothing to say at all....
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Which one?
Nope.
So your appreciation and evaluation of consumer financial risk is from where?
You are quite happy for MIGs but these come at an expense for the consumer. Ok they may be wrapped into the deal but Joe Punter still has to pay throuigh the nose for them. typicaly they protect the lender but not the borrower.
In marketing high LTV motrgages they were, of late , often sold as part of a package to give a good degree of fee income to bolster profitability in the deal as they sought to keep market share. knowing theyw ere puching the limits.
So in addition to a high fee, typically higher rates, MIG insurance premium, Life Insurance ( with repayment vehicle imcluded), home insurance as well as cross sell for other products. These weren't always particularly good value products..
You mention elsewhere the fact that capital reserve requirements ofrare 6x more for 95% LTV versus 60%. I kinda think some seroious thought has been given to that requirement. What do you think they should be?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0
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