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What percentage of mortgages issued should require only a 10% deposit?
Comments
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Most.... 75%Mr._Pricklepants wrote: »How ironic to see our dear Percy assume the "I'm allright Jack, pull the ladder up" position when he only got into a home buying position thanks to sharing his personal debts with his other half.
Eh ?
Sharing debts with the other half, sharing deposit saving with other half, sharing mortgage repayments with other half....... so what ?30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Most.... 75%I prefer the current system where, yes as you say some are pushed into enriching landlords a little longer but the goal is still attainable as prices aren't shooting out of reach.
....... and because HPI is "under control", the queue to become a landlord is not as long as it would be if HPI were being fueled by 95% mortgages.
IF 95% mortgages were to be made readily available to FTBs, I'd like to see no loosening of lending criteria for potential landlords. In fact, it may be an idea to tighten it.
Just a thought, mind.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
A moderate amount.... 30%Graham_Devon wrote: »If theres a limit, what is it?
Currently?
The 2% or so of mortgages actually being issued at that LTV.
About 900 a month.
The banks are severely limiting funding available for high LTV lending.
Indeed there are reports up to 90% of all applications at higher LTV's are rejected.“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 -
Most.... 75%HAMISH_MCTAVISH wrote: »The banks are severely limiting funding available for high LTV lending.
Sounds like a sensible idea to me.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
A moderate amount.... 30%Sounds like a sensible idea to me.
Why?
Lending at historically normal, prudent and sensible 5% to 10% deposits is low risk.
So limiting it only prevents millions of people from buying, causes new house building to fall to the lowest levels in a century, and forces rents up to record highs instead.
As we have seen.“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: »Currently?
The 2% or so of mortgages actually being issued at that LTV.
About 900 a month.
The banks are severely limiting funding available for high LTV lending.
Indeed there are reports up to 90% of all applications at higher LTV's are rejected.
So 900k is the limit on 90% LTV mortgages?
Only 900k can be given a month? Can't give 910k?0 -
A moderate amount.... 30%Graham_Devon wrote: »So 900k is the limit on 90% LTV mortgages?
Only 900k can be givenn a month?
No Graham.
It's just 900 a month.
Not 900K a month.
And that's not just 90%, it's all the mortgages above 90% as well, so all the new buy, home buy, lend-a-hand, 95%, etc.
Less than a thousand mortgages a month... For the whole of the UK.“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: »No Graham.
It's just 900 a month.
Not 900K a month.
And that's not just 90%, it's all the mortgages above 90% as well, so all the new buy, home buy, lend-a-hand, 95%, etc.
Less than a thousand mortgages a month... For the whole of the UK.
Forget the K, obvious mistake.
Is 900 a month the limit? 910 can't be given?0 -
Wouldn't it make more sense to make a 20% deposit mandatory?
Then wouldn't be a need for 95% mortgages at all.0 -
A moderate amount.... 30%Graham_Devon wrote: »Forget the K, obvious mistake.
Is 900 a month the limit? 910 can't be given?
Banks are limited by 2 things.
1. Access to funding.
2. Capital withholding regulations.
So currently, they have to withhold 6 times the capital to lend at 95% LTV as they do at 60% LTV, thanks to BASLE 3.
In other words, they can either lend 6 mortgages at £100,000 at 60% LTV..... or...... one mortgage at £100,000 at 95% LTV.
Or assuming the same capital is deployed, if they chose to lend two mortgages at £100,000 at 95%, they would have to not lend 12 mortgages at £100,000 at 60% LTV.“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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