Monday, Mar 29, 2010
Roll up, roll up
Daily Mail: Post Office to offer 'super-size' mortgages to first-time buyers
Post Offices will start offering controversial 'super-size' mortgages to help young people with little savings buy their first home, the Government will reveal today.
Under the radical plan, the Post Office will hand out mortgages to people who can only afford a 10 per cent deposit.
It raises fears that they will be left exposed to a negative equity nightmare if house prices fall sharply over the next few years, as some economists predict. The Post Office is already a large mortgage lender through its tie-up with the Bank of Ireland but it currently insists on a minimum deposit of 20 per cent.
Posted by little professor @ 01:12 AM (1034 views) Add Comment
13 Comments
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1. paul said...
I suppose the government have already proven themselves to be slow learners. After watching the UK's credit-based economy crumble before their eyes, you'd have thought they would know better but no, actually you can pretty much guarantee that the government will do exactly the opposite of the moral hazard would normally dictate.
This is a government that after being burned badly by the expenses scandal, has MPs who will quite happily sit in front of a consultant and say stuff like this:
I wonder what this new commitment of public funds will do to Britain's credit rating?
2. holyroller said...
Maybe they know house prices will drop and the post office and bank of ireland will be left with a massive shortfall on amount mortgaged and asset value, they will then easily be able to justify closing most of the post offices based on this debt.
3. mrflibble said...
The powers that be desperately seek new Cannon Fodder to keep the ponzi scheme alive... Sign up now...
I don't know how many more FTB's will fall for this stamp duty holiday / low base rate / low deposit con trick, but lets hope it isn't many, as they really are being sucked into a dangerous game.
Like squirrels, the government continues to store up problems for the future...
4. Cypher007 said...
+1
5. happy mondays said...
Well said mrflibble..
Just keep the Defibrillator going property Doc's, like a Frankenstein housing market..
6. mark wadsworth said...
To paraphrase Mr Flib - "Whatever it takes".
7. mrmickey said...
Was thinking about opening a savings account with the Post Office, think I might scrap that idea.
8. Neil B said...
This wont make any difference what so ever: No one earns enough to qualify for a mortgage that meets the current asking prices and the days of IO mortgages are long gone so that wont help either.
9. jack c said...
Looks like it's full steam ahead to get back to the pre-2008 days further evidenced by
"Kensington will now consider customers who have had CCJs or defaults registered to their name in the past two years"
Full story www.mortgagestrategy.co.uk/lenders/kensington-to-consider-borrowers-with-ccjs/1009261.article
10. timmy t said...
First class stamps will be a quid before long, as those who post letters bail out the post office.
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