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Guardian: 95% Mortgages "not a source of risk"
Comments
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HAMISH_MCTAVISH wrote: »UK mortgage lending default rates are extremely low, which makes it one of the safest lending types in the World today.
Under no circumstances can it be described as "high risk".
Suggest you read any of the BOI threads on this forum, the property118 forum, or the major newspapers.
You'll see how mortgage interest rates hitting 4.9% has effected people.
Only then will you be able to decide if it's mortgages and mortgage holders that are responsible for low default rates.....or whether it's all the stimulus pumped in / low base rates.
Why do I get the feeling I've said this numerous times before with blind ignorance in response?
You bang on about default rates but won't even look at the massive support put into the system to achieve this. Instead, you prefer to pretend that lending was always perfectly fine.0 -
Graham_Devon wrote: »You'll see how mortgage interest rates hitting 4.9% has effected people.
Of the 13,000 people victimised by the BOI's disgusting decision not to honour their trackers, there will be perhaps a few hundred that will genuinely struggle, and possibly a few dozen that will end up in forced sales or repossession.
Unsurprisingly, many/most of those will be in Northern Ireland, where the situation is very different to the mainland UK.
But the average rate for new FTB lending, particularly at higher LTV-s, is already above 5%.
And most banks have raised their SVR-s to close to 5% already as well.
So your point is, as always, a bit pointless.Suggest you read any of the BOI threads on this forum,
How many times Graham....
Threads on this or any other forum are not representative of the wider population.
People struggling with a financial issue tend to go to where other people struggling with a financial issue can be found.
That doesn't mean everyone, or even most people, are struggling.
This forum has a million members and a disproportionately high percentage will be here looking for advice on financial problems. But even here, the vast majority are not in dire straights financially, or in bankruptcy, or losing their homes. They're just here looking to save money, chat, research investments, debate house prices, or whatever.“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 -
Alright Hamish I give up.
Theres about 15 elephants in many of your posts. I for once, can't get you to see a single one of them. Good luck to anyone else who wishes to take on the task.0 -
Graham_Devon wrote: »Alright Hamish I give up.
.
Excellent news.
Just do me a favour and don't buy a house any time soon though.
You're the ultimate contrary indicator.;)“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.
As the author of the report in the OP points out.
95% mortgages are not a significant "source of risk".
What qualification does this author have.
an unfair finance system, academic claims
Unfair:- to whom shareholders and depositors, existing borrowers. I am sure a number of BOI borrowers would have been happier if they had controlled their lending book.
It is a commercial world when did fairness enter the equation?
Competent financial regulators would get my vote over any academic.
As a PP has pointed out if their is so little risk I am sure we will soon see Guardian Mortgages flying off the shelves.."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 -
Of course borrowing money to fund 95% of the cost of something is a risk.
If prices fall the borrower then owes more than his asset is worth.
It has been an unquestioned assumption over the last 30 years that house prices never fall. We know better now.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
Clifford_Pope wrote: »Of course borrowing money to fund 95% of the cost of something is a risk.
If prices fall the borrower then owes more than his asset is worth.
It has been an unquestioned assumption over the last 30 years that house prices never fall. We know better now.
No it hasn't beeen the unquestioned assumption, in fact everyone knows that
house prices fell in the period 1989-1993 ish too0 -
No it hasn't beeen the unquestioned assumption, in fact everyone knows that
house prices fell in the period 1989-1993 ish too
Seems like a number of posters on here aren't old enough to remember that.
Arguably that was only a correction for the HPI leading up to that point.
On the whole prices have always trended upwards, at differing paces. I do accept that some areas won't have seen much of it in blackspots."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 -
is there any evidence that FTB are high risk per se?
Only in that they are more than likely to have a smaller deposit (and also no equity) to inject that a second rung mover.
Many first rung buyers are now trapped with interest only mortgages that were granted with no thought by either lender or borrower as to how capital would be repaid.0 -
Thrugelmir wrote: »Only in that they are more than likely to have a smaller deposit (and also no equity) to inject that a second rung mover.
Many first rung buyers are now trapped with interest only mortgages that were granted with no thought by either lender or borrower as to how capital would be repaid.
given I actually postedis there any evidence that FTB are high risk per se?
certainly high LTV or poor affordability ratios will be higher risk
I guess you are just agreeing0
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