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Mortgages are illegal?
Comments
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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!
The reason I call it illegal because it was never a loan in the first place the bank never gave up any money for the property the buyer of the house created the funds so charging intrest for money that fell outof the sky is not a loan thefore should not be suseptable to interest, no money has been loaned.0 -
look at your £10 note, ''I promise to pay'' promisey notes thats all they are, so if you take out a mortgage you promise to pay 180k for example, but no money is actually being lent.
Are you serious?
If I get a mortgage for £180k, the bank *loans me* £180k...in a very real sense...as in they give me the money up front and then expect me to repay the "loan" over time.
The £180k they give me, in most instances, just "vanishes", as *the buyer gets it*, as it's paid to the conveyance, not you...And yes, sometimes that will just "vanish" too, as the chain continues...but if they're just selling up...they'll actually get the money... So you buy a house, the bank doesn't have £180k any more, because you borrowed it. The sellers don't have a house any more, because they sold it. They have £180k sat in their bank account. You own a house.
Please expand, I've no idea how you figure that "no money is actually being lent."...0 -
The reason I call it illegal because it was never a loan in the first place the bank never gave up any money for the property the buyer of the house created the funds so charging intrest for money that fell outof the sky is not a loan thefore should not be suseptable to interest, no money has been loaned.
If the buyer of the house could just 'create the funds' then they wouldn't need a mortgage
If a bank just has money faling out of the sky then why would they ever have to declare large losses when they come to publish their end of year accounts ?0 -
The reason I call it illegal because it was never a loan in the first place the bank never gave up any money for the property the buyer of the house created the funds so charging intrest for money that fell outof the sky is not a loan thefore should not be suseptable to interest, no money has been loaned.
How does your conclusion follow from your starting point?
Even if they had just created it out of thin air, why do you believe that that means that you shouldn't pay it back?
You seem to be mixing up something that confuses you with something that should not be allowed. I fear that this would render 90% of modern life (and 50% of modern written English) illegal in your world.
May I ask, do you have a mortgage?0 -
Idiophreak wrote: »Are you serious?
.
read above post, if you still find it hard to understand : youtube /watch?v=fOj_xp2jHl00 -
The reason I call it illegal because it was never a loan in the first place the bank never gave up any money for the property the buyer of the house created the funds so charging intrest for money that fell outof the sky is not a loan thefore should not be suseptable to interest, no money has been loaned.
Um, money has been loaned. The bank "gave up" money. It didn't "fall out of the sky". Funds were not "created".
If you are selling a house, you get a shed load (OK, a house load) of money. That is frequently used to buy another property so you don't see it in your bank account. But if you are not buying another property with the money from the sale, you know what? It goes into your bank account and stays there.
So, why do you say that no money has been loaned, when clearly it has?1. Have you tried to Google the answer?
2. If you were in the other person's shoes, how would you react?
3. Do you want a quick answer or better understanding?0 -
(is this a Friday afternoon troll?)1. Have you tried to Google the answer?
2. If you were in the other person's shoes, how would you react?
3. Do you want a quick answer or better understanding?0 -
The reason I call it illegal because it was never a loan in the first place the bank never gave up any money for the property the buyer of the house created the funds so charging intrest for money that fell outof the sky is not a loan thefore should not be suseptable to interest, no money has been loaned.
The bank no longer has that money to lend once it's gone to the seller. They can obtain more funds by asking for savers, or borrowing larger amounts from the likes of pension funds, central banks or other investors.
They do this by offering assets such as buildings they own, existing mortgages (so already promised payments over x number of years) or other things to secure a lower interest rate.
At some point the bank has to pay back that money and hope the cost of paying that money back is less than what they have loaned everyone.0 -
You might be surprised by how many people actually believe this sort of tripe!
i am definatley not a troll and secondly this is very real,
Its hard to get my point across when people already have a beleif system in mortgages themselves thats why I keep asking people to view
youtube/watch?v=fOj_xp2jHl0 so I can show people backing up what i've said0
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