Sunday, Jun 17, 2007
Good news: cost of borrowing is down!!
Guardian: Rise in number of 100% mortgages
Sympathetic with FTBs and BTLetter struggling to put a toe nail on the property ladder, banks have decided to give back to society and extend the 100% mortgage offer to anyone able to sign a self cert form (emailed and faxed forms are also accepted). The additional good news is that the offer rates on the 100% mortgages has been set to a very low level and is fixed for the first 1500 minutes (then reverting to the standard-variable-rate-that-will-shock-you). "The improved value of this type of mortgage is a result of stiffer competition among lenders, and will continue to attract the "maiden homebuyer", said MoneyExpert.com."
Posted by confused76 @ 11:54 AM (149 views) Add Comment
5 Comments
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1. Scott said...
You can come up with several new tricks on how to fleece even more people but soon there will be nobody left to fleece. Your house price only goes up because some other sucker is willing to pay more for it; 120k goes to 140k goes to 160k goes to 200k. Where does this extra money come from? How many FTBs earn 50k to pay for 200k?
2. robh said...
In many ways it is more worrying to have a 50% loan-to-value that you can't afford than a 100% loan-to-value that you can
How does that work? If you have a 100% loan to value which you subsequently can't pay by a small amount you're in trouble. Surely if you have 50% you can re-mortgage with a 60% loan to value?
3. confused76 said...
I agree, robh
but that is the kind of idiocy that mortgage salespeople say and the press is so eager to report
4. inbreda said...
Idiotic comments? check this one out by the independent:
http://money.independent.co.uk/personal_finance/pensions/article2664348.ece
"A property crash and lower house prices might be helpful for many, like my inquisitor, struggling to get their first foot on the housing ladder.
But its impact on interest rates and over-indebted borrowers and consumers would be extremely painful for many millions more in the short and medium term."
Maybe I am being stupid, but since when have house prices impacted on interest rates? This is the other way around surely? Perhaps Sam Dunn should be renamed Sann Dum?
5. confused76 said...
Sam Dumb?