Bank Bailout Ahoy!

antrobus

CLAPTON wrote: »

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

It didn't turn out that way for the Northern Rock, Bradford & Bingley, the Dunfermline, or all those building societies that had to be bailed out. Including the Britannia, who then crippled the Co-Op Bank.

But excluding the Manchester Building Society which is still pretty much stuffed.

antrobus

Generali wrote: »

We all know where this leads though.

I'm not particularly convinced that the Barclays offer is particularly dangerous.

Generali

antrobus wrote: »

I'm not particularly convinced that the Barclays offer is particularly dangerous.

Nor am I.

Extra letters.

PasturesNew

In short, grab your inheritance now and lock it into the bank, so your parents/others can't spend it .... and if you're an idiot and get repossessed, your parents' savings are hijacked until any loss is repaid.

Marvellous. What could possibly go wrong.

The DM can publish articles for years to come *cue photo of grumpy/furious looking couples with arms crossed* "Barclays Stole our Life Savings"

cells

So few mortgage holders default in the UK that even 5% down mortgages are virtually risk free

even of the very low repo rate a segment (perhaps the majority) will end as no loss to the lender

The regulator needs to understand this and bring back self cert bring back interest only (or a hybrid eg 5 years interest only then 25 years repayment)

antrobus

Hutchch0920 wrote: »

Did anyone watch the film The Big Short?

As a potential FTB I am all for providing access to better products to provide assistance but 5.5 x income + 100% LTV is bonkers.

.....we are edging ever closer into the subprime mortgage territories.

There is nothing particularly wrong with a subprime mortgage if it's priced correctly and the lender can't stuff it off-balance sheet and avoid the capital requirements.

CLAPTON

antrobus wrote: »

It didn't turn out that way for the Northern Rock, Bradford & Bingley, the Dunfermline, or all those building societies that had to be bailed out. Including the Britannia, who then crippled the Co-Op Bank.

But excluding the Manchester Building Society which is still pretty much stuffed.

who actually lost any money except a few shareholders?
savers?
house buyers?
government/tax payers?

martinsurrey

Hutchch0920 wrote: »

Did anyone watch the film The Big Short?

As a potential FTB I am all for providing access to better products to provide assistance but 5.5 x income + 100% LTV is bonkers.

.....we are edging ever closer into the subprime mortgage territories.

but this is NOT 100%, its a 90% mortgage, its a none story.

mwpt

cells wrote: »

So few mortgage holders default in the UK that even 5% down mortgages are virtually risk free

Over what time period are you measuring this? Defaults are a function of lenience of the banks and from what I hear, in the late 80s they weren't very lenient but are much more so now. Also, we've had falling rates for many decades which means existing owners benefit big time and default less.

The regulator needs to understand this and bring back self cert bring back interest only (or a hybrid eg 5 years interest only then 25 years repayment)

Those maths guys at the banks need to listen to this internet guy. Because 2007 only happened over there, it could never happen over here. Can't lose in British bricks and mortar.

I'm waiting for 100% IO mortgages at 1% rates so I can afford the mansion on the river that I want.

michaels

It used to be accepted that not all loans would always pay back and banks adjusted interest rates according to risk so that they made enough from the risky borrowers who did pay back to cover the writeoffs on those who didn't - for example wonga, Northern Rock.

Now however it is against people's human rights for the bank to allow them to take out a risky loan so only loans where there is no risk to the bank and negligible risk to the borrower are allowed.

Very soon we will not be allowed to wipe our own a**s in case we get it wrong and Nannie State will employ someone to do it for us.