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Shotoflight

Ni Leads The Way

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There is nothing new here, Northern Bank have been offering a 100% mortgage for months now. When I applied for my mortgage with them awhile back, I was made jump through loads of hoops. I would say they're almost certainly not giving a 100% mortgage on 5 times earnings.

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There is nothing new here, Northern Bank have been offering a 100% mortgage for months now. When I applied for my mortgage with them awhile back, I was made jump through loads of hoops. I would say they're almost certainly not giving a 100% mortgage on 5 times earnings.

Yip, it was raised on here a month or more ago - thanks BVI.

The interesting aspect here is that it has been picked up by The Daily Telegraph and is considered as noteworthy in an environment where NI, in terms of housing bust and boom, was seen as madder than elsewhere. And the fact that it's not near over and the Northern are already continuing to haemorrhage money hand over fist on bad property loans.

Perhaps they'll be first out of the blocks again with 125% ers?

And why not?

Edited by Shotoflight

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As stated above the Northern, whilst always having this 100% loan listed amonst its products rarely issued it.

To get this lean you either have to:

a. prove you don't need it, or

b. supply a parental guarantee for the loan.

Therefore it is not really 100% lending.

However, we recently completed on two houses using this loan. I have no way of discovering if there were guarantees in place and interestingly they both were on a development where the Northern was not the land backer.

My view, for what it is worth, these should be banned.

Firstly, if you have not been able to put aside, even a 5% deposit then you have not demonstrated your ability to manage finance.

Secondly, you couldn't rent a house without some sort of deposit.

Thirdly, if you have no equity in a house you have less commitment to maintaining it etc.

I think they just carry this product so they can say, when they are called up to the hill to account for themselves, that they are lending.

Edited by BelfastVI

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As stated above the Northern, whilst always having this 100% loan listed amonst its products rarely issued it.

To get this lean you either have to:

a. prove you don't need it, or

b. supply a parental guarantee for the loan.

Therefore it is not really 100% lending.

However, we recently completed on two houses using this loan. I have no way of discovering if there were guarantees in place and interestingly they both were on a development where the Northern was not the land backer.

My view, for what it is worth, these should be banned.

Firstly, if you have not been able to put aside, even a 5% deposit then you have not demonstrated your ability to manage finance.

Secondly, you couldn't rent a house without some sort of deposit.

Thirdly, if you have no equity in a house you have less commitment to maintaining it etc.

I think they just carry this product so they can say, when they are called up to the hill to account for themselves, that they are lending.

Fourthly, BOE states things won't get any better for the next three years - professional or otherwise, the cuts are just starting.

They are (understandably) coy about it in terms of advertising and marketing the product, from what I can see. It's the headline that's doing the damage and sending the wrong signals, rather than the fact that a handful are issued every quarter under the strictest of criteria.

Some, however, may see it as the thin edge of the wedge, or testing the water.

I'd have thought they'd have much weightier issues on their mind.

Again, the Daily Telegraph think's it's worthy of note - local rags don't seem to.

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  • 331 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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