Jump to content
House Price Crash Forum
Jister1

95% Mortgage With A Twist :)

Recommended Posts

Lend A Hand mortgage requires 20 per cent of the mortgage value to be held in a savings account by the bank, fixed for three years - allowing first-time buyers to use their parent's savings to boost their deposit.

Click here

:lol: not worth the bloody hassle.

Share this post


Link to post
Share on other sites
Lend A Hand mortgage requires 20 per cent of the mortgage value to be held in a savings account by the bank, fixed for three years - allowing first-time buyers to use their parent's savings to boost their deposit.

Click here

:lol: not worth the bloody hassle.

I saw this on the BBC news this morning but I don't understand it.

If parents:

1) have 20% of the value of the house in cash

2) can afford to tie it up in an account for 3 years

3) can afford to forfeit it if the children fall behind in payments

4) believe the children will definitely repay it

Why havent they already contributed this directly towards the deposit? Unless the % interest in the savings account is particulaly good.

This just seems like a suckers deal to draw as much easy cash out tof the market as possible.

This deal is so useless even sibbers/tavo/valium/rhionitis aren't crowing about it.

<edit: splong>

Edited by Super Ted

Share this post


Link to post
Share on other sites
Lloyds TSB has become only the second High Street lender to offer mortgages with a deposit of five per cent, signalling a return to normality in the market.

Normality??????? :blink::blink: :angry:

Share this post


Link to post
Share on other sites
Lend A Hand mortgage requires 20 per cent of the mortgage value to be held in a savings account by the bank, fixed for three years - allowing first-time buyers to use their parent's savings to boost their deposit.

Click here

:lol: not worth the bloody hassle.

And what if house prices fall over the three year period so at the end of it children in negative equity (or they don't have a 10% deposit yet?) To me this is appears to be a 25% LTV product with the possibility of MEWing to 10% LTV at the end of the three years?

As not much equity is paid in the first 3 years of a 25 year mortgage, prices would have to be completely static in three years to free the 20% deposit.

Share this post


Link to post
Share on other sites
Lend A Hand mortgage requires 20 per cent of the mortgage value to be held in a savings account by the bank, fixed for three years - allowing first-time buyers to use their parent's savings to boost their deposit.

Click here

:lol: not worth the bloody hassle.

The savings would be tied up for a minimum of three years, but Lloyds will have a hold on the money until the property owner has 10 per cent in equity.

To free the deposit, buyers would have to repay 5 per cent of the property value over three years or hope for a 5 per cent increase in prices. This poses a risk if house prices keep falling at a rate of more than 1 per cent a month.

:lol:

Share this post


Link to post
Share on other sites
And what if house prices fall over the three year period so at the end of it children in negative equity (or they don't have a 10% deposit yet?) To me this is appears to be a 25% LTV product with the possibility of MEWing to 10% LTV at the end of the three years?

As not much equity is paid in the first 3 years of a 25 year mortgage, prices would have to be completely static in three years to free the 20% deposit.

The number of people with 20k just burning a hole in their pocket must be pretty tiny. Of that tiny % of the population those inclined to "invest" this in property would presumably already have done so.

Or has the mortgage market been relegated to using pester-power to sell products. :lol:

Share this post


Link to post
Share on other sites

So the bank becomes the legal intermediary between child and parent? :blink:

It's effectively a form of guarantee using a legal charge over the parents cash savings account.

It would take a particularly stupid parent that would feel the need to give a bank a legal charge over their cash rather than simply loan it on confidential terms to their offspring.

Getting a bank involved between parent and child in this way is akin to treating them as total strangers who can't trust each other. It's the most bizarre orwellian thing I've ever heard of.

No wonder it comes from Gordon's personal bank. Usual desperate socialism smoke and mirrors to enable them to put out a headline for the hard of thinking that it's a 95% deposit rather than a 25% deposit.

Expect 3 people to take them out. All of whom will be Labour MPs. Probably Scottish.

Share this post


Link to post
Share on other sites
NFPMINO (95% mortgage in name only). The Telegraph article is another pathetic ramp.

Verdict: FAIL

Your search - NFPMINO - did not match any documents.

It would appear Google is not my friend on this particular occasion.

Share this post


Link to post
Share on other sites
The savings would be tied up for a minimum of three years, but Lloyds will have a hold on the money until the property owner has 10 per cent in equity.

To free the deposit, buyers would have to repay 5 per cent of the property value over three years or hope for a 5 per cent increase in prices. This poses a risk if house prices keep falling at a rate of more than 1 per cent a month.

:lol:

Why does this seem to have the hands of our beloved sub-Prime Minister all over it?

A con-job dressed up as a great deal. :lol:

Share this post


Link to post
Share on other sites

So Gordon provides the mortgage money from Taxpayers, and the bank recapitalise by taking the 20% of the property value payed for by parents savings.

Masterpiece...............................so the bank simply make the profit and the taxpayer takes the risk.

Share this post


Link to post
Share on other sites
Normality??????? :blink::blink: :angry:

Normality = we can all be rich for doing nothing if we keep the pyramid scam running.

Investment that could otherwise be diverted into productive endeavour and enterprise, rather than unproductive assets and consumerism.

Total market failure. Total reform of capitalism is required.

Share this post


Link to post
Share on other sites

More positive news.

A 95% mortgage at 4.39% is a fantastic incentive to FTB's

Easy to see why you lot don't welcome it. :lol:

Your feeble attempts at mocking it are understandable. It's a surefire winner.

Kids will be on to mum and dad right now.

Cheers Lloyds. winesmiley.gif

Edited by Rinoa

Share this post


Link to post
Share on other sites

Lloyds want as much money fixed for 3 years as they can get their hands on so that when interest rates go up they are quids in. It's not all about trying to protect their awful HBOS mortgage book it's about increasing their liquidity.

Share this post


Link to post
Share on other sites

isn't it just another way of borrowing a 20% deposit from mum and dad

and there are cheaper deals if you want to do that

this is what they said on MoneyBox anyway when the Skipton launched the same thing a couple of months back

Edited by newdman

Share this post


Link to post
Share on other sites

I dont understand the 20%...

surely take out the mortgage...

95%...

need to get down to 90%...

so pay the extra 5% then take the 20% back... surely this is open to abuse, when the shit begins to hit the fan???? effectively only a 90% mortgage...

Share this post


Link to post
Share on other sites
More positive news.

A 95% mortgage at 4.39% is a fantastic incentive to FTB's

Easy to see why you lot don't welcome it. :lol:

Your feeble attempts at mocking it are understandable. It's a surefire winner.

Kids will be on to mum and dad right now.

Cheers Lloyds. winesmiley.gif

For only 3 years!!! Thats less than 12% of the life of the mortgage. Such short termism you display.

Share this post


Link to post
Share on other sites

the article mentions that Lloyds is the second lender to do a 95% mortgage

presumably the other referred to is the Skipton - doesn't say in the article?

Edited by newdman

Share this post


Link to post
Share on other sites
The savings would be tied up for a minimum of three years, but Lloyds will have a hold on the money until the property owner has 10 per cent in equity.

To free the deposit, buyers would have to repay 5 per cent of the property value over three years or hope for a 5 per cent increase in prices. This poses a risk if house prices keep falling at a rate of more than 1 per cent a month.

:lol:

Yes, it may take a long time before the buyers have 10% equity in this market.

It is a cunning idea though - the bank getting cheap funding for the loan by paying low interest on the parents' savings.

Share this post


Link to post
Share on other sites
More positive news.

A 95% mortgage at 4.39% is a fantastic incentive to FTB's

Easy to see why you lot don't welcome it. :lol:

Your feeble attempts at mocking it are understandable. It's a surefire winner.

Kids will be on to mum and dad right now.

Cheers Lloyds. winesmiley.gif

:lol:

I have stopped believing you're a bull Rinoa. I'm beginning to appreciate your evil genius. :lol:

Share this post


Link to post
Share on other sites
More positive news.

A 95% mortgage at 4.39% is a fantastic incentive to FTB's

Easy to see why you lot don't welcome it. :lol:

Your feeble attempts at mocking it are understandable. It's a surefire winner.

Kids will be on to mum and dad right now.

Cheers Lloyds. winesmiley.gif

If anyone ever needed proof that you are a wind up troll rather than just a passing idiot this has to be it.

Its a 75% mortgage wearing a false beard and those comedy glasses with the nose attached.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   289 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.