Bank Bailout Ahoy!

Generali

Barclays bring back the 100% mortgage...

http://www.thesun.co.uk/sol/homepage/news/7125846/Barclays-shock-bank-to-bring-back-the-100-per-cent-mortgage-to-help-first-time-buyers-get-on-the-property-ladder.html

Barclays has dropped the need for a deposit, a major barrier to joining the property ladder. Cashless first-time buyers can get a three-year, fixed rate deal at 2.99 per cent under its revamped “family springboard” mortgage.

Until now, they had to pay five per cent of a property’s purchase price. A “helper”, often the buyer’s parents, must still put up ten per cent cash.

What could possibly go wrong:eek:

HornetSaver

Such is the shambles of the market, and the level of resistance to change, that those profiting from the status quo paying from increased taxation for a bump in the road such as a major lender predictably going belly up seems almost sensible.

michaels

So barclays are covered for 10% just like any other 90% mortgage rather than the 15% they had before?

vivatifosi

I thought finding a way to formally tap the Bank of Mum and Dad was quite a shrewd move.

Stevie_Palimo

Barclays didn't get any bailout well from the tax payer anyway, If this gets more young people into homes it can only be a good thing and whilst some will default that is the norm across every type of lending product.

kabayiri

Stevie_Palimo wrote: »

Barclays didn't get any bailout well from the tax payer anyway, If this gets more young people into homes it can only be a good thing and whilst some will default that is the norm across every type of lending product.

They did get money from the American TARP relief program, but it wasn't the UK tax payer as you say. Perhaps that was a canny move.

kabayiri

vivatifosi wrote: »

I thought finding a way to formally tap the Bank of Mum and Dad was quite a shrewd move.

£5bn according to the news yesterday. That's a lot of 5% or 10% deposit money.

Parents are supposed to gift without a financial interest or control in the property, but how often is that the case? It caused a rift between my friend and his parents that has not been resolved to date.

CLAPTON

how much money did banks lose from domestic customers in 2007-8 etc?

antrobus

michaels wrote: »

So barclays are covered for 10% just like any other 90% mortgage rather than the 15% they had before?

The clue would be in that 'Family Springboard' branding.

Barclays want 10%. Which is 5% more than I had to cough up when I bought my first house.

CLAPTON wrote: »

how much money did banks lose from domestic customers in 2007-8 etc?

Billions.

CLAPTON

antrobus wrote: »

The clue would be in that 'Family Springboard' branding.

Barclays want 10%. Which is 5% more than I had to cough up when I bought my first house.



Billions.

or by much less that 1% so say one of the safest investments possible and absolutely a profit center

Generali

antrobus wrote: »

The clue would be in that 'Family Springboard' branding.

Barclays want 10%. Which is 5% more than I had to cough up when I bought my first house.

We all know where this leads though.