Jump to content


Photo
- - - - -

Return Of The 100Pc Mortgage


  • Please log in to reply
22 replies to this topic

#1 cashinmattress

cashinmattress

    HPC Guru

  • Members
  • PipPipPipPipPipPip
  • 7,440 posts

Posted 05 March 2013 - 09:49 AM

link

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.

#2 Bruce Banner

Bruce Banner

    Targ

  • Members
  • PipPipPipPipPipPipPip
  • 13,701 posts

Posted 05 March 2013 - 09:51 AM

link



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.
.



----------------------------------------------------------------------------------------------------------
Lest there be any doubt.

No I believe prices will fall and am astounded that a so called Conservative led government could act in such a stupid way. As you can see from today, there are 2,000 HtB applicants and it has been on MSM none stop all day and they make up about 3.5% of a typical months mortgages.

BTL is a good potential way to bankruptcy and yes sometimes I make points to hopefully make people think.


#3 Silent Dancer

Silent Dancer

    HPC Regular

  • Members
  • PipPipPip
  • 639 posts

Posted 05 March 2013 - 09:57 AM

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.

#4 AvoidDebt

AvoidDebt

    HPC Regular

  • Members
  • PipPipPip
  • 378 posts

Posted 05 March 2013 - 10:23 AM

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....

#5 RufflesTheGuineaPig

RufflesTheGuineaPig

    is fluffy

  • New Members
  • PipPipPipPipPipPipPip
  • 8,038 posts
  • Location:Cricklade, UK
  • About Me:I am Ruffles, the destroyer of worlds....

Posted 05 March 2013 - 10:24 AM

link

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!
It's time to pay the piper. There is no magician who will magic away the debt. Someone is going to have to pay it. Bend over and prepare to make payment.

In this glorious nation of ours, if you work hard and keep your head down for 25 years then you too can aspire to own one-eighth of a one bedroom flat in Manchester.


My mum and day always tell me how important it is to save to buy a house. They should know, it took them nearly 6 months to save for theirs. As teenagers, they bought a 3 bed semi.

#6 Bruce Banner

Bruce Banner

    Targ

  • Members
  • PipPipPipPipPipPipPip
  • 13,701 posts

Posted 05 March 2013 - 10:31 AM

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.
.



----------------------------------------------------------------------------------------------------------
Lest there be any doubt.

No I believe prices will fall and am astounded that a so called Conservative led government could act in such a stupid way. As you can see from today, there are 2,000 HtB applicants and it has been on MSM none stop all day and they make up about 3.5% of a typical months mortgages.

BTL is a good potential way to bankruptcy and yes sometimes I make points to hopefully make people think.


#7 Bloo Loo

Bloo Loo

    Ripened on the Diversity Vine

  • Members
  • PipPipPipPipPipPipPip
  • 53,550 posts
  • Location:Essex-the land of Equality
  • About Me:Im Bloo yabba dee yabba die.

Posted 05 March 2013 - 10:35 AM

100% plus the lies on the mortgage application.
WARNING

Your
country is at risk
if you
do not keep up repayments
on a gilt or other loan secured on it





#8 cashinmattress

cashinmattress

    HPC Guru

  • Members
  • PipPipPipPipPipPip
  • 7,440 posts

Posted 05 March 2013 - 10:38 AM

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.

#9 winkie

winkie

    I live on HPC!

  • Members
  • PipPipPipPipPipPipPip
  • 27,403 posts

Posted 05 March 2013 - 10:39 AM

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. ;)
What you don't owe won't worry you.

Less can be more.

#10 SarahBell

SarahBell

    I live on HPC!

  • Members
  • PipPipPipPipPipPipPip
  • 17,080 posts
  • Location:Mars.

Posted 05 March 2013 - 11:08 AM

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.
Whoever you are, I have always depended on the kindness of strangers.

#11 RufflesTheGuineaPig

RufflesTheGuineaPig

    is fluffy

  • New Members
  • PipPipPipPipPipPipPip
  • 8,038 posts
  • Location:Cricklade, UK
  • About Me:I am Ruffles, the destroyer of worlds....

Posted 05 March 2013 - 11:50 AM

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.
It's time to pay the piper. There is no magician who will magic away the debt. Someone is going to have to pay it. Bend over and prepare to make payment.

In this glorious nation of ours, if you work hard and keep your head down for 25 years then you too can aspire to own one-eighth of a one bedroom flat in Manchester.


My mum and day always tell me how important it is to save to buy a house. They should know, it took them nearly 6 months to save for theirs. As teenagers, they bought a 3 bed semi.

#12 nickincash

nickincash

    HPC Regular

  • Members
  • PipPipPip
  • 362 posts

Posted 05 March 2013 - 12:52 PM

Fine - as long it's 100% of the value not 100% of the price.

#13 mikthe20

mikthe20

    HPC Veteran

  • Members
  • PipPipPipPip
  • 1,915 posts

Posted 05 March 2013 - 02:22 PM

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).
"Ignorance is strength" (1984)

#14 cashinmattress

cashinmattress

    HPC Guru

  • Members
  • PipPipPipPipPipPip
  • 7,440 posts

Posted 05 March 2013 - 02:57 PM

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.

#15 cashinmattress

cashinmattress

    HPC Guru

  • Members
  • PipPipPipPipPipPip
  • 7,440 posts

Posted 05 March 2013 - 02:57 PM

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.




0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users