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Woolwich Limits Interest-Only To 75% Ltv

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Cough up

Woolwich has announced that all mortgages taken out above 75% LTV will now have to be on a capital repayment basis only, as part of a raft of changes to its interest-only deals.

From 25 October, Woolwich will no longer allow borrowers the ability to have part repayment and part interest-only deals above 75% LTV. It will also carry out random checks to make sure that valid repayment vehicles as cited on the application are in place.

In addition, Woolwich will now calculate affordability for interest-only deals over a term of 25 years or until the main income earner reaches 70 or retirement age, whichever comes first.

It will also allow the sale of the mortgaged property, up to a maximum LTV of 66% with at least £150,000 equity.

Barclays said it was making the changes in to protect its customers' long-term interests

A statement from Barclays said that it believed interest-only deals had a place for certain types of borrowers, but it may no longer be an appropriate option for many people.

It attributed this to historic low interest rates affecting mortgage affordability and potential returns on investment vehicles, alongside uncertainty over future house price movements.

Hmmm....

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" It will also carry out random checks to make sure that valid repayment vehicles as cited on the application are in place"

Is this not suppose to be done before you get the loan... idiots.

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They have to build their capital up....they need to get the cash from the debtors to enable them to lend to new borrowers....all this will only pull prices down, but buying a home may get cheaper to buy, but not easier to get the funds to buy, or easier to pay for, and it sure won't make the easy profits it did in years gone by. ;)

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Interest only works for some people.

I have a great off-set mortgage that I can use.

But most people are not that financially savvy - you should have to pass a test to get an I/O mortgage.

Or prove that you have good finances etc...

My mortgage at 2.5% is about 10% of my after-tax and deductions salary.

The other 90% I can choose what to do with - I normally over pay my mortgage by about £1000 a month.

Unfortunately - I/O was used by people to afford mortgages that they could not actually afford.

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Interest only works for some people.

I have a great off-set mortgage that I can use.

But most people are not that financially savvy - you should have to pass a test to get an I/O mortgage.

Or prove that you have good finances etc...

My mortgage at 2.5% is about 10% of my after-tax and deductions salary.

The other 90% I can choose what to do with - I normally over pay my mortgage by about £1000 a month.

Unfortunately - I/O was used by people to afford mortgages that they could not actually afford.

This is pretty much what I do too. Always had IO

First mortgage we got in 2000 we had to show prooof of a "repayment vehicle". Remortgaged every 2 years to get a better discount rate, never had to prove diddly squat again. :blink:

Mortgage now down to ~£34K. Give it 18 months when it;s down to peanuts i might borrow 3.5X salary, buy a bigger house, stay there for ever and never darken these pages again ;)

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Mortgage now down to ~£34K. Give it 18 months when it;s down to peanuts i might borrow 3.5X salary, buy a bigger house, stay there for ever and never darken these pages again ;)

You'll be back - trust me. :ph34r:

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Good find.

Earlier this month Barclays reported ...

Mortgage lending at Barclays has hit the milestone of £100bn.

Over the last three years Barclays has lent £55.7bn in new mortgages through its mortgage arm Woolwich and increased overall mortgage lending by 42 per cent compared to an average increase across the industry of 3.5 per cent. I

n the first half of this year Barclays net lending grew by £4bn in a market where total net lending grew by only £2bn as other lenders have sought to reduce the size of their mortgage commitment.

To cement this milestone today, Barclays reaffirms its ongoing commitment to the UK mortgage market with a cut to lifetime tracker mortgages by up to 0.41 percentage points.

So, the fastest growing lender is reigning in lending and why?

From the OP ...

It attributed this to historic low interest rates affecting mortgage affordability and potential returns on investment vehicles, alongside uncertainty over future house price movements.

All that new debt and now they worry?

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  • 238 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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