cashinmattress

Return Of The 100Pc Mortgage

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No deposit needn't mean no mortgage now, with a crop of new deals aimed at first-time buyers who are struggling to get on the housing ladder.

Last week Bath Building Society announced it was loosening its purse strings, and would be offering 100pc mortgages again.

But before desperate first-time buyers beat a path to its door, it's worth noting that there is a catch: the equity in your parents' home is effectively used as a deposit.

How many parents are going to for this? Equity ≠ cash!

Housing and greed has turned the UK into an insane casino.

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How many parents are going to for this? Equity ≠ cash!

Housing and greed has turned the UK into an insane casino.

Probably all of the stupid ones.

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There is also the effort from Barclays called Springboard where parents have to put a 5% guarantee into a linked savings account and a 5% deposit. http://www.telegraph...r-mortgage.html

I'm not sure how popular these ideas are going to be. I think most parents have now got the idea that at best house prices are flatlining and wouldn't want to take the risk. Either the BoM&D is sufficently well off to fund a bigger chunk of the purchase or they accept that the kids can't afford to buy.

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Housing and greed has turned the UK into an insane casino.

I met a young guy in his 20s a few weeks ago who took a loan from BOMAD to buy his first BTL. Parents obliged because he was oh so bored in his IT job....

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How many parents are going to for this? Equity ≠ cash!

Housing and greed has turned the UK into an insane casino.

Working 60 hour weeks? Living on rice and beans? Can't afford to turn the heating or lights on? Tough sh!t!

Miss a payment and we throw your elderly parents into the street and it will be all your fault!

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There is also the effort from Barclays called Springboard where parents have to put a 5% guarantee into a linked savings account and a 5% deposit. http://www.telegraph...r-mortgage.html

I'm not sure how popular these ideas are going to be. I think most parents have now got the idea that at best house prices are flatlining and wouldn't want to take the risk. Either the BoM&D is sufficently well off to fund a bigger chunk of the purchase or they accept that the kids can't afford to buy.

In my case, I've accepted that the kids are better off not buying in the present market and so have they, even though they have good jobs and could all afford to.

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100% plus the lies on the mortgage application.

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Miss a payment and we throw your elderly parents into the street and it will be all your fault!

Not sure if it will be that extreme, but there will be penalties.

I wonder what happens in this case: the parents bankrupt, their house is heavily mortgaged to another bank, market conditions put the property into negative equity or it becomes unsellable..like the cliff side houses or flooding, et al.

If I put down my money on the roulette wheel the 'best' I can hope for is the 48.6% chance of getting my money doubled on an outside bet. I think the banks are playing much worse odds and encouraging folk to gamble like this is a classic case of the inmates running the nuthouse.

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100% of three times one income and one times second.......repayment over 25 to 30 years, fine.

100% five times one income and three times second.......interest only indefinitely, madness. ;)

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One of the big four have one where parents loan money to kids for 'security' and get it back with interest after 3 years.

Assuming kids pay mortgage anyway.

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One of the big four have one where parents loan money to kids for 'security' and get it back with interest after 3 years.

Assuming kids pay mortgage anyway.

Barclays.

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Not sure if it will be that extreme, but there will be penalties.

I wonder what happens in this case: the parents bankrupt, their house is heavily mortgaged to another bank, market conditions put the property into negative equity or it becomes unsellable..like the cliff side houses or flooding, et al.

If I put down my money on the roulette wheel the 'best' I can hope for is the 48.6% chance of getting my money doubled on an outside bet. I think the banks are playing much worse odds and encouraging folk to gamble like this is a classic case of the inmates running the nuthouse.

Why do you wonder? The evidence is clear - under Labour, Conservative and LibDem governments these people and their lenders are protected at the expense of savers and taxpayers. Can't see a reason why this will change any time soon (UKIP=pro-banker NIMBYs).

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Why do you wonder? The evidence is clear - under Labour, Conservative and LibDem governments these people and their lenders are protected at the expense of savers and taxpayers. Can't see a reason why this will change any time soon (UKIP=pro-banker NIMBYs).

I wonder because what you potentially have is a secured loan or second mortgage out on what could be an already mortgaged house, if we are talking about equity.

Of course it makes no difference for a property owned outright.

Does the original lender have to agree to the terms of the new one, say for the case of two banks?

It just seems nutty.

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Why do you wonder? The evidence is clear - under Labour, Conservative and LibDem governments these people and their lenders are protected at the expense of savers and taxpayers. Can't see a reason why this will change any time soon (UKIP=pro-banker NIMBYs).

I wonder because what you potentially have is a secured loan or second mortgage out on what could be an already mortgaged house, if we are talking about equity.

Of course it makes no difference for a property owned outright.

Does the original lender have to agree to the terms of the new one, say for the case of two banks?

It just seems nutty.

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I wonder because what you potentially have is a secured loan or second mortgage out on what could be an already mortgaged house, if we are talking about equity.

Of course it makes no difference for a property owned outright.

Does the original lender have to agree to the terms of the new one, say for the case of two banks?

It just seems nutty.

Given that the children's lender e.g. BBS would take a charge against the parents' property, and I doubt whether any lender on the parents' house would allow that, I suspect that this is only possible if the parents own outright, having paid off any mortgage.

Edit: tell you what, next time I'm in Bath and while I'm still sober i.e. before lunch with my friends there, I'll call into the BBS and ask. I'm the right age, I can pimp my kids' details and the description of my house a bit.

Edited by Snugglybear

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Given that the children's lender e.g. BBS would take a charge against the parents' property, and I doubt whether any lender on the parents' house would allow that, I suspect that this is only possible if the parents own outright, having paid off any mortgage.

Unless the parents have to move their mortgage to the same lender

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Unless the parents have to move their mortgage to the same lender

Yeah, that would probably be the way.

Still seems nuts though, just like the whole property cult here in Britain.

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odd how no deposit required headline in reality becomes business as usual, but we rope in a third party for the deposit.

Hope that someone else pays for you...ENTITLEMENT is now used as a selling point.

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odd how no deposit required headline in reality becomes business as usual, but we rope in a third party for the deposit.

Hope that someone else pays for you...ENTITLEMENT is now used as a selling point.

.....one house along with one or two average jobs is now no longer enough to be taken as security.....two houses, two plus jobs and/or a good pension should be sufficient to suffice......you can never be overly protected......there has got to be a good backup plan. ;)

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