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House Price Crash Forum


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About bobhope

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    HPC Newbie
  1. I just don't understand the motivation of the lender and/or their backers. Why would you lend money at such a low interest rate at such a high LTV? As an investor, I can get 2 point something on 10 year gilts. It doesn't stack up.
  2. Borrowers will have no UK protection if things go wrong, cautions regulator, just days after launch of Selfcert.co.uk in Czech Republic http://www.theguardian.com/money/2016/jan/27/fca-warning-self-cert-mortgage-overseas-lender I don't understand their business model at all. Why would you lend at 2.5% at a relatively high LTV (85%) ? It makes no sense. I understand for a UK bank who can borrow for (almost) free, but this business surely has higher funding costs? Possibilities that come to mind: 1) Recycling / washing of money from interesting (hah) sources ? 2) Borrowers sign up to 2.5% and the company changes the conditions 1 year down the road (e.g. West Bromwich) - bait and swtich ? 3) Initial promotion to gain news coverage exposure ? Any ideas?
  3. bobhope

    Mortgage Fraud Man Must Repay £10,000

    I'm not sure this is fraud at all really. There's little or no difference between him, the bosses at HBOS, Fred at RBS, Kirstie, the money printers at the BOE, etc. That's the problem with the past few years: people's moral compasses have been completely messed up.
  4. "Northern Rock has announced that it is deferring payment of all subordinated debt coupons on a number of its bonds." http://www.ftadviser.com/FTAdviser/Mortgag...nd-payments.jsp Surprised you missed this one.
  5. I always work best with concrete examples. So, I spent some time looking at an MBS from Granite (Northern Rock): http://companyinfo.northernrock.co.uk/down...0prospectus.pdf It's a $5.7bn MBS from 2007 and a 300+ pages long behemoth. I think I've answered my own question as to why they're trading at a massive discount: it's so complex, with so many variables. Unfortunately, I couldn't find a current market price.
  6. bobhope

    Mpc Minutes

    Is there any point to Blanchflower? He seems to vote as follows: Inflation below target: cut rates Inflation above target: cut rates Inflation rising: cut rates Inflation falling: cut rates
  7. I've just had a thought. Hargreaves Lansdown hold their Sipp pension client money with HBOS (I think) How safe is that money? I can't be the only one here who has their pension with them, mainly sitting in cash because of the current stock market turmoil. Anyone know if this is still the case. I've emailed H-L. Google hasn't been of help in this case.

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