Jump to content
House Price Crash Forum
Sign in to follow this  
eric pebble

" - Together" 125pc Mortgage Offer Has Proved One Of The Most Toxic Financial Ideas Known To Mankind...." -

Recommended Posts

Damien Reece in the Telegraph:

""Together" 125pc mortgage offer has proved one of the most toxic financial ideas known to mankind...."

"....affordability is not improving because first-time buyers have to find a deposit, for instance, approaching 100pc of annual income, according to Savills, the agents."

Are surprised? NO! :rolleyes:

Read all here: http://www.telegraph.co.uk/finance/comment...a-recovery.html

Edited by eric pebble

Share this post


Link to post
Share on other sites

well, with many people in Neg Equity, and still have other credit outstanding, I guess there are many hundreds of thousands in the same position but with different lenders.

recovereh.

Share this post


Link to post
Share on other sites

And yet the "mortgage + loan, no deposit needed" model was used by the UK government as the basis of its "HomeBuy" schemes - which enabled people who, in the scheme's own words "could not afford to buy a home" - to saddle themselves with unafordable long term debt of up to 100% of valuation.

Thankfully, the open market schemes now seem to have been dropped, but financially naive buyers can still use the scheme to buy a new build property, thus bailing out the developer.

Share this post


Link to post
Share on other sites

WTF?

So if you have got enough spare cash to buy something in the right area, mortgage free, then bricks and mortar may well now make an attractive income generating investment for the future.

Just can't help themselves can they? :angry:

Share this post


Link to post
Share on other sites
Has he been charged yet?

financialgenius.jpg

what with? Being a c)nt in a public place is perfectly legal as far as I know.

Share this post


Link to post
Share on other sites
Has he been charged yet?

financialgenius.jpg

Nah.... Gordon's going to give him a Knighthood for "services to Financial Services" :rolleyes:

Remember...... Sir Fred.... [Goodwin, of RBS] .....

Sir James....[Crosby, of HBOS].......

You have to laugh... or cry.... :angry:

Edited by eric pebble

Share this post


Link to post
Share on other sites

Aha... Mr. Applecart I presume, the creator and mentor (along with his stylish Marketing Department) of the "Together" mortgage product, he also developed a special early redemption charge some years previously I am led to believe. It caused all sorts of bad publicity for Northern Rock and they didn't sack him! Well a missed opportunity there then.

Only defence is the together product isn't fully secured, 95% max only secured rest was a personal loan provided at same rate of mortgage. It's what most FTB's did except they borrowed 95% from building society and took rest as a personal loan (usually at a higher rate) from a bank.

Share this post


Link to post
Share on other sites
Aha... Mr. Applecart I presume, the creator and mentor (along with his stylish Marketing Department) of the "Together" mortgage product, he also developed a special early redemption charge some years previously I am led to believe. It caused all sorts of bad publicity for Northern Rock and they didn't sack him! Well a missed opportunity there then.

Only defence is the together product isn't fully secured, 95% max only secured rest was a personal loan provided at same rate of mortgage. It's what most FTB's did except they borrowed 95% from building society and took rest as a personal loan (usually at a higher rate) from a bank.

.....except if you do default and the sale price of the house is more than the secured element, then they will and can use the sale proceeds of the house to clear the 'unsecured' bit. So in effect its not really unsecured - Clever huh?

Share this post


Link to post
Share on other sites
.....except if you do default and the sale price of the house is more than the secured element, then they will and can use the sale proceeds of the house to clear the 'unsecured' bit. So in effect its not really unsecured - Clever huh?

they can do that with any unsecured debt....they go to court and get a charge on your asset.

Home owning....such a pleasure.

Share this post


Link to post
Share on other sites
what with? Being a c)nt in a public place is perfectly legal as far as I know.

Trading whilst insolvent would be a good start.

Share this post


Link to post
Share on other sites
Trading whilst insolvent would be a good start.

nah....that was a "liquidity" crisis, all the banks had them :lol:

and I beleive for that charge to stick, the firm would have had to have been declared insolvent with winding up order or bankruptcy.

Share this post


Link to post
Share on other sites
Troll!

That is dated © 2007, you were having a laugh! :lol:

Right - but wrong!

The Banks/building societies played the same game they did in the 89/90 BUST!

They got friends to "buy together" to afford a poxy box house,

extended the loans for another 5-10yrs ie 30-35yr mortgages

or switched to interest only with no payoff facility set up( also in alot of cases mis-selling endowment mortgage promises ie lying on the leaflets about 'future' returns!

I noticed the same fekkin mortgage industry offer exactly the same 2007-8 -

"Friends club together if you want to get on the housing 'ladder'" (mortgage offers!)

All now in negative equity - no doubt!

Several people I know fell for the 1989 'trap' and took up to 10 yrs to get mortgage back to normal!

'THEY' NEED REGULATING!

Share this post


Link to post
Share on other sites

erranta, I think they called them "Mortgage Clubs" if my memory serves me correctly, stupid thing to do IMO.

I don't think "Together" type mortgages will be allowed to be repeated somehow...but that will take regulation.

I believe maximising (by regulation) the LTV at 95% wouldn't be a bad idea.

Share this post


Link to post
Share on other sites
nah....that was a "liquidity" crisis, all the banks had them :lol:

and I beleive for that charge to stick, the firm would have had to have been declared insolvent with winding up order or bankruptcy.

Nah - it only requires the directors to have reasonably known they weren't solvent. In NRK's we know the FSA were aware of it at least 6 months before the plug was pulled. They were trying to find a buyer behind the scenes remember? McFall told us he knew Lloyds were in the frame well before the plug was pulled.

So, I'd say there's probably a good chance that a conspiracy charge would stick too. But I agree, in our mafia run country, TPTB will never do it. This is the sort of thing Cameroon should be promising - I might even vote for him.

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
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   296 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.