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Northern Rock - Responsible Lenders?

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They seem to be buying growth by taking on extra risk - they're offering up to 5.1 times joint mortgages* and 125% LTV (Loan to Value) mortgages which appear to be the most generous of any lender. I wonder if they're underwriting this risk themselves?

*http://db.riskwaters.com/public/showPage.html?page=218979

"......However, if the friends have no deposit they would need to look at lenders who offer 100% mortgages and higher income multiples. These would include Northern Rock (up to 5.1 times joint income) and Coventry Building Society (up to four times joint income) – both will lend up to 125% loan to value (LTV). Borrowers in this position should try and avoid the higher lending charge (HLC) which most lenders still charge for mortgages over 90% LTV. This can add up to 3% of the amount borrowed, increasing the overall figure to 103%. However, Northern Rock and Coventry both offer 100% plus mortgages on higher income multiples (depending of course on good credit scores) and do not charge HLC........ "

I wonder if it's wise to be so bighearted in a market where prices are, at best, static and in the real world probably falling?

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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