Tuesday, Feb 19, 2008
Imploding fast
Timesonline: A&L, Abbey, Coventry, and Godiva to pull 125% mortgages
Those coming off fixed rates needing 100%+ loans will have nowhere to go. Cleveland Ohio style defaults coming to British estates in the not too distant future. A very significant milestone on the HPC journey.
Posted by neverfunny @ 02:38 PM (362 views) Add Comment
2 Comments
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1. alan said...
Replaced link:
http://business.timesonline.co.uk/tol/business/money/property_and_mortgages/article3396829.ece
I am amazed that this scale back of 125% loans has taken so long to work through the system. I saw a few ads in the Metro and on websites pushing Bradford & Bingley's 110% mortgages.
The article reminds us:
"Northern Rock is still offering its 125 per cent Together Mortgage, but experts say that the bank has effectively priced itself out of the market by charging more than 8.2 per cent on its 2-year fixed-rate deal, nearly three percentage points more than the base rate".
Obviously, NR are certain that house prices won't drop leaving buyers with a big negative equity. Shouldn't somebody warn them....?
2. Exactm said...
The only problem with your analysis is that it doesn't take into consideration that only a maximum of 95% of the property value is secured. Oh and by the way, Coventry ARE Godiva