100% mortgage - Northern Rock dropping mortgageassets - how do we get a new mortgage?

byrnsey

well, well, well. seems people went a bit off the subject matter I started.

to answer but a few - we've been adjusting our spending for years now. nothing new there. You think when you buy a house on a 100% mortgage that we start lining up sports cars outside our 134,000 ex-council house???
THAT would be dreaming.

The real world is pretty straight forward. It is how the banks sell us it that is not. The best advice has been from MSE himself - get a 5% or more persoanal loan, low rate, opens us up to new mortgage deals straight away.

And on the matter of "dreaming" again, it is a bank like NR that was dreaming. All this time it has been building a massive new HQ all the time the money was going down the plug hole.

I should know, I live half a mile from it and can see the !!!!!!. And house prices in Newcastle have been slowly, very slowly going up here, unlike the big increases in the south and home counties. And they are expected to at least keep their value, it not continue to trickle upwards.

Having said that, it doesn't really matter. Life - mortgage, taxes - Death.
No biggy!

Gorgeous_George

NR was not the problem. NR is a sympton.

People buying houses for silly money was the problem. People taking 2 and 3 year fixed rates without considering the risks was the problem.

It is likely that anybody with less than 20% equity in their homes will not be able to move away from NR. To reduce their mortagge book by 50% NR will need to encourage their GOOD customers to move leaving the sub-prime borrowers only. This makes their residual mortgage book MORE risky than that which got them in this mess in the first place.

The Government needs to find a way to limit the damage. Lower base rates are the only way that comes to mind. This could lead to higher inflation but may not if lenders do not pass on the rate cuts fully.

GG

Guy_Montag

mr.broderick wrote: »

Perfect...You see worse things are happening at sea.

:eek: Don't say that yours truekly is off to spend over a month bobbing about the Indian Ocean next month. :grouphug: _pale_

minimike2

Lowering base rate will not help the immediate problems. We have already seen two base rate cuts. During that time mortgage rates have only increased. Base rate reductions now are not the way to fix the problems.

I dont know what is though. Maybe cash injections to the money markets - but that could prove too risky.

Maybe the problems need to be sorted out by the general public rather than government. I.E Spending and living within means instead of living off credit.

EdInvestor

We have to wait for the credit crunch to be sorted before rates can come down. It won;t go on forever.

mpsavuk

byrnsey wrote: »

The real world is pretty straight forward. It is how the banks sell us it that is not. The best advice has been from MSE himself - get a 5% or more persoanal loan, low rate, opens us up to new mortgage deals straight away.

So you are going to add a loan to your credit report????

Do you think this will do wonders for your credit score and therefore the lenders will bite your arm off?

Won't they take into account the monthly payments on that loan and knock it off your affordabilty assessment?

And won't they possibly ask you what the loan was for, and if so, are you going to own up and say we had to borrow money for the mortgage deposit?

Do you see where i'm going with this one?!!!