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100Pc Mortgages Return To The Market

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http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8694426/100pc-mortgages-return-to-the-market.html

Northern Bank, which operates in Northern Ireland, is offering the loans subject to affordability, although borrowers do not have to belong to a special group, such as professionals who can expect to earn high salaries in future, in order to be considered.

The bank does not offer mortgages in other parts of the UK.

Previously, buyers without a deposit normally had to rely on help from parents via a guarantee.

With “guarantor” mortgages, the home loan is effectively underwritten by the parents. So if you fell behind with monthly payments, this means that they would be obliged to pay.

The advantage of such schemes is that parents don’t have to stump up cash sums upfront and it can enable you to borrow more. But if you run into financial problems, this can affect your parents’ ability to get credit and potentially put their home at risk.

I'm all for advantage's where I can borrow buy, in fact why don't banks give you 200% mortgages?

wh-double-facepalm%255B1%255D.jpg

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Really need 400% mortgages; 100% for the house and 300% for 3 BTLs that will pay for the original house and also be a pension - sorted.

Add on another 400% to pay off credit card debt, to buy that nice shiney BMW 1 Series, a 10000000" LCD TV will all the accessories, new kitchen and furniture, and to pay for this years 2 week holiday, next years holiday, they just MEW the equity they gained as house prices on ever go up

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The Northern Bank have always listed this amongst their products, but rarely issued it.

You had to be able to prove that

a. you didnt need it, or

b. you had parents who would guarantee it.

Therefore it wasn't really 100% lending.

I think it should be banned (and thought it was) People cant rent a property without a deposit and shouldn't be allowed to buy a house without taking some equity.

Nothern Bank list this just to be able to tell the Government that they are lending at high loan to value.

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I have nothing in principle against 100% mortgages.

I do have an issue with sensible lending, which many 100% mortgages were clearly not.

For example, an individual earning 100K and wants to borrow 150K to buy his home, then is this irresponsible?

From the lending decision I would say no.

From the "Investors" position, I would say that A: Investors should be told up front that their bankis doing this, and B:, how much of their portfolio is involved.

Otherwise, investor products would be clearly LIAR LOAN based.

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The advantage of such schemes is that parents don’t have to stump up cash sums upfront and it can enable you to borrow more.

It sounds just like what I posted recently but I'm one step ahead. As well as the parents paying the mortgage so banks can make more profits - I had the children earning as well :lol:

A leading banker has today advised the government to reduce the minimum working age and allow children of any age to go to work.

The banker said “In today’s high inflationary economy it is absolutely ridiculous that children sit at home while both parents have to work increasingly longer hours to try keep the family solvent”.

“When I was a child my mother was able to stay at home to look after me and my sisters Tabitha and Hortensia but now an increasing number of women have to work. In 1997 when house prices were £60k, a 25 year mortgage at 6% was £380 a month but now the average house costs £160k+ the mortgage has ballooned to £1,030. That extra £650 a month represents an increase of 170%, similar to the rise in house prices. Remember that increase is just on an average house and who wants to live in one only worth that much? These extra mortgage payments are crippling families all over the UK. They are no longer able to spend as much money in the economy and the outlook for UK consumption is bleak. While my pay and bonuses are escalating, due to the government diverting money to bankers from savers via low interest rates, I really worry for CEO’s in the retail sector. Where are their future bonuses going to come from, when the public are left with little or no disposable income? How long can the government go on devaluing sterling, so that foreigners can come here to buy things that people in the UK can no longer afford themselves?

“If children went straight to work when leaving school it solves a lot of problems in the UK. There would be a reduction in anti-social behaviour with less children roaming the streets. The money they earn would increase household incomes. Another advantage of children working is that many retired grandparents currently take on child care duties. With children working this childcare would not be necessary so this would free up the grandparents to find work of their own. Even though their own mortgages may be paid up these retirees could contribute a large portion of their new incomes towards their children’s mortgage. All this extra income would mean there be less mortgages underwater and people could even pay a lot more for their next house”

“In order to fully maximise the mortgage paying potential of the higher earning households, the UK should abolish what little financial regulation it still pretends it has. At the moment 70% of mortgages granted in the UK had to have income verified compared to 50% in 2007. However once children were allowed to work, income verification would not be necessary at all, as parents could keep popping out wage earning children to meet any mortgage shortfall. In addition, with life expectancy increasing, if children started working earlier, mortgage terms could be extended to 60 or 70 years, to give them longer to pay their mortgage interest.”

“So what would work would all these children do? Well I would suggest that children cannot start learning about how to get in debt early enough. At the height of the housing boom it became obvious that mortgage broking required little or no skill. Just being able to see that people were not showing signs of rigor mortis was enough to be able to grant them mortgages. Therefore every Primary school could open up it’s own mortgage broking office for their pupils. This could be manned 247 on a shift system, to keep the children gainfully employed. ”

“I feel very confident that the dark clouds that have gathered over the UK, would be blown away if my ideas were adopted. It doesn’t matter how many hours, days, weeks, months, years you have to work, if people know that when they get home and go to bed, those four walls are worth a lot more. With another housing boom on top of our current housing boom, the UK would then have the largest banks in the world and the public would be safe in the knowledge that banks of that size are too big to fail”.

http://www.housepricecrash.co.uk/forum/index.php?showtopic=167426

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Really need 400% mortgages; 100% for the house and 300% for 3 BTLs that will pay for the original house and also be a pension - sorted.

Of course. House prices only go up don't they...that is until they go down..

I really can smell falling prices now.. deficite falling and even plummeting to come

Edited by plummet expert

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House prices have been falling so fast in Northern Ireland that anyone taking out one of these mortgages will be in negative equity before they have even completed the application form.

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http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8694426/100pc-mortgages-return-to-the-market.html

I'm all for advantage's where I can borrow buy, in fact why don't banks give you 200% mortgages?

wh-double-facepalm%255B1%255D.jpg

..as before these people as lenders are out of control, a blight on Society, just as bad as the rioters and should be shut down.... :rolleyes:

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And here is their latest losses recorded

http://www.bbc.co.uk/news/uk-northern-ireland-14456715

So they obviously want to make greater losses next year

Closing six branches - perhaps they are desperate for the 'good times' to return. They've been calling an end of the recession in NI for the past 2 yrs as things get progressively worse and in the face of £4 billion of agreed public spending cuts.

Perceptive bunch.

http://www.u.tv/news/Six-Northern-Bank-branches-to-close/88acea1a-27a2-4593-abbb-394de6344470

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Irish Banks are well and truely ******ed.

Look at Bank of Ireland shares....BKIR...currently stand at 0.10p. So £500 quid will get you half a million shares! Investors are so piissed off with the share, that they refer to it as FKIR.

These 100% mortgages are, in reality, like an offset product; you save £100000 with us and we will lend you a £100000 mortgage. I guess the mortgage works out interest free.

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I have nothing in principle against 100% mortgages.

I do have an issue with sensible lending, which many 100% mortgages were clearly not.

For example, an individual earning 100K and wants to borrow 150K to buy his home, then is this irresponsible?

From the lending decision I would say no.

From the "Investors" position, I would say that A: Investors should be told up front that their bankis doing this, and B:, how much of their portfolio is involved.

Otherwise, investor products would be clearly LIAR LOAN based.

I agree.

Can't see much wrong with lending 60k at 100% to someone on 60k gross with no other financial commitment. (I am looking at myself as a case in point).

The problems arise when you lend 150k at 100% to someone on 15K with student debt and a few maxed out credit cards. When I moved to Newcastle in 2006 this was happening all the time.

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  • 336 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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