Mortgages are illegal?

Dan-Dan

This guy shouldnt be very hungry by this stage...

WellKnownSid

Shock! Horror! Person finally discovers money isn't real.

Right, I'm off to the bank, I've got several sheep to deposit and I'll need some chickens in my pocket for the weekend...

fawnsinthegarden

I don't believe it to be an illegal practice, with the banking industry not regulated to the point to prevent it banks are in the business of making money, regardless if the lent amount actually physically exists or not.

The problem with this though, is that it is just a number on the screen and if you were to look at the amount of credit that exists as numbers on a screen and how much physical money exists, unsurprisingly more is lent than can be completely repaid, adding interest adds to the problem that all debts collectively can never be fulfilled to their entirety.

So morally, or financially, it's not ideal, it's not illegal and I very much doubt the regulations will change as there is no incentive for the banks to lend if they aren't making profits.

TheGonza

the best and easiest way i can explain it i guess is in this vid:

just put this in google and click the video
/watch?v=fOj_xp2jHl0

Its not a question that we have a faith based system with money at the moment, however the money creation is one thing but to then being charged crippling interest on money that came from nothing is riddiclous

fawnsinthegarden

But not illegal.

John1993_2

TheGonza wrote: »

Its not a question that we have a faith based system with money at the moment, however the money creation is one thing but to then being charged crippling interest on money that came from nothing is riddiclous

Then don't borrow it.

Simples.

spacey2012

Lots of things forced upon us are illegal, thats why they have Barristers and lawyers to prevent you from doing anything about it.

magpiecottage

The OP is clearly correct.

He should therefore complain to FOS that his mortgage with the Porcine Aerobatic Building Society is unenforcible and should be written off.

WTFH

I don't consider 3.25% to be crippling interest, not compared to the likes of Wonga.

Here's an idiot's guide to house buying:
1. You apply to a bank for a loan.
2. The bank agrees to give you the loan according to their rules and the law. That loan is normally secured against the property you are buying.
3. The loan is transferred from your mortgage account (via the solicitors) to the bank account of the person you are buying the house off.
4. Over a period of time (as agreed between you and the bank), you pay them back the money you have borrowed plus the interest they have charged, which helps cover their risks and allows them to continue in business.

Can you explain which part of English or European law is being being contravened by the bank when giving you a mortgage?
If mortgages are illegal, then anyone who lives in a house is guilty of property theft - most likely from the Church of England!

TheGonza

spacey2012 wrote: »

Lots of things forced upon us are illegal, thats why they have Barristers and lawyers to prevent you from doing anything about it.

sounds about right...