What percentage of mortgages issued should require only a 10% deposit?

Generali

StevieJ wrote: »

I thought we did that here, I know I certainly did buying my first house.

It disappeared in the early C21st.

HAMISH_MCTAVISH

A moderate amount.... 30%

chucky wrote: »

This post needs a little bump just in case Devon has missed it.

I don't think he would be happy with unlimited 90% mortgages btw.

Yes, it's very strange he keeps ignoring a simple question like that.

Is he happy with unlimited 90% mortgages?

StevieJ

Most.... 75%

Generali wrote: »

It disappeared in the early C21st.

Looks like it is back but funded by the taxpayer and builders this time.

The NewBuy Guarantee scheme, which will be launched in March, will allow lenders to offer large mortgages on new-build homes without taking on all of the risk: they will be guaranteed not to lose money if the property falls into negative equity and is repossessed, with the mortgage indemnity funded by developers and taxpayers.

http://www.guardian.co.uk/money/2012/feb/01/shapps-newbuy-mortgage-guarantee-scheme

N1AK

A few..... 15%

IveSeenTheLight wrote: »

In the previous 6 years, how many properties was repossessed?

I've smoked a dozen cigarettes and don't have cancer; clearly continuing to smoke will be safe :rotfl:

I don't expect to see a massive level of repossessions but just looking at historical, even recent, data and thinking that it is evidence of future trends is a massive mistake.

Banks aren't refusing to lend for mortgages out of spite. They have their reasons and if anything all the government schemes etc make it even harder to understand those reasons and how valid they are. They are clearly concerned about lending large amounts at low rates for long terms secured against property and who can blame them. My bank is earning 2.25% on the £60k outstanding in my mortgage that's hardly a return to get the blood racing especially as it isn't without risks and they can't even profit from any increase in asset value.

Mr._Pricklepants

HAMISH_MCTAVISH wrote: »

Yes, it's very strange he keeps ignoring a simple question like that.

Wait a minute, he's watching PMQ's.

Couldn't answer the poll - whatever percentage is workable/desireable/affordable I guess.

Percy1983

As far as I can see there is unlimited 90% mortgages, the limit is how many people which meet the critera which isn't the banks fault.

I will say we didn't plan for a 90% mortgage, the plan was save up for around 15%-20%, but as it was while we where keeping an eye on the market the perfect house at the perfect price popped up so we jumped in at 90%.

I will say many won't go in at 90% due to less favourable terms compared to 85% and 80% mortgages so in many cases people will be doing what we planned and saving a little longer.

Graham_Devon

HAMISH_MCTAVISH wrote: »

Yes, it's very strange he keeps ignoring a simple question like that.

Is he happy with unlimited 90% mortgages?

It's a stupid question - thats why I'm not answering.

We don't have a set number of 90% mortgages now, never have and never will.

We've always had "unlimited" numbers of 90% mortgages. There is no numerical limit.

chucky

HAMISH_MCTAVISH wrote: »

Yes, it's very strange he keeps ignoring a simple question like that.

Is he happy with unlimited 90% mortgages?

I don't think he wants to answer it.

He's very against anyone buying property because if more people buy, demand increases and probably prices too. He doesn't want to be left behind which is probably why he runs his online campaign against property buying.

IveSeenTheLight

Most.... 75%

N1AK wrote: »

I've smoked a dozen cigarettes and don't have cancer; clearly continuing to smoke will be safe :rotfl:

I don't expect to see a massive level of repossessions but just looking at historical, even recent, data and thinking that it is evidence of future trends is a massive mistake.

In contexst with the post it was replying to, I think it was a relevant question

Originally Posted by zagfles
The risk is a downturn in the economy which results in unemployment going up at the same time as house prices go down. Lots of people losing their jobs and ending up in negative equity, lots of bad debt.

We've already had to bail the banks out once, they've learnt their lesson.

I don;t understand your anology to youp ersonally smoking.
Is someone going to snap up your cigarrette remains with you as a distressed buyer

HAMISH_MCTAVISH

A moderate amount.... 30%

Percy1983 wrote: »

As far as I can see there is unlimited 90% mortgages, the limit is how many people which meet the critera which isn't the banks fault.
.

Completely and utterly wrong.

If a million people with perfect credit scores showed up at banks this year with a 10% deposit, they would have to reject almost all of them.

Banks are not rejecting up to 90% of FTB applications for a 10% deposit mortgage for fun... They're doing so because the new capital withholding rules combined with dysfunctional wholesale lending markets mean they have only tiny amounts to lend at higher LTV-s.