Carney vows to take action on the BTL sector

Graham_Devon

ukcarper wrote: »

Perhaps you can explain the difference between paying a pension from a salary and a pension I would say my pension is more secure than your job.

That's not the issue.

The issue is that you are asking for what is, in effect, an interest only loan. In this case you are saying "I will stand by my word and pay the capital off with my pension".

Great. But what happens if you don't?

My issue isn't so much about the plan. It's the fact that regulators have decided they will not allow this - and that's the bit you seem to be ignoring.

If you allow for your plan, you would need to allow for interest only mortgages again, loans for deposits rolled into the mortgage again, self cert again - otherwise you are favouring 50 year olds based on their word.

In effect, what I'm saying is you are coming up with solutions that have very recently been banned because they were so problematic for the banks and the economy. This is the bit you don't seem to grasp. Your ideas in essence have already been tried and tested. There no point protesting about how someone might, or could or may do something - the reality is these sorts of loans, in part, caused a global financial issue.

cells

Graham_Devon wrote: »

without having to actually certify anything?

Good plan.

glad we agree

getting 25% down certifies that you can save and have a good grasp of money and have an income or support group that backs you up

How else is someone going to find a £100k deposit on a £400k property?

I dont need to see wage slips as you could be fired tomorrow thats all that is worth. Id rather see that you have put together 25%

Graham_Devon

cells wrote: »

getting 25% down certifies that you can save and have a good grasp of money and have an income or support group that backs you up

Or in your scenario, where there are no checks, proves you can get a loan and then use that loan as a deposit. You may refer to this loan as an "income support group" if that helps?

ukcarper

Graham_Devon wrote: »

That's not the issue.

The issue is that you are asking for what is, in effect, an interest only loan. In this case you are saying "I will stand by my word and pay the capital off with my pension".

Great. But what happens if you don't?

My issue isn't so much about the plan. It's the fact that regulators have decided they will not allow this - and that's the bit you seem to be ignoring.

If you allow for your plan, you would need to allow for interest only mortgages again, loans for deposits rolled into the mortgage again, self cert again - otherwise you are favouring 50 year olds based on their word.

In effect, what I'm saying is you are coming up with solutions that have very recently been banned because they were so problematic for the banks and the economy. This is the bit you don't seem to grasp. Your ideas in essence have already been tried and tested. There no point protesting about how someone might, or could or may do something - the reality is these sorts of loans, in part, caused a global financial issue.

Talk about straw man, I'm talking about taking out a repayment mortgage that you can afford the repayments on your pension, nothing to do with paying off with lump sum that's just a bonus. If you a final salary pension you know what your pension will be when you retire so it's easy to base mortgage on that.
Any mortgage is based on the word of the borrower and if they fail to keep that word they are liable to be repossessed .