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ingermany

100 % Loans

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FT

100% advance guaranteed with charge on mum and dad's house.

1. so much for social mobility. loans are now given only to people whose parents own property.

2. the concept is a non-starter. The bank will never get equity from parents iff offspring default. the govt. has outlawed repossession. They're not going to repo pensioners because their kids have screwed up. the guarantee is a sham.

3. The interest rate of 6.48% for 3 years is just a cynical ploy to make quick money for the bank. they will dump the risk on the taxpayer when it goes wrong.

Aldermore, a small bank that set up in 2009, is to become the first national lender to offer mortgages to borrowers without a cash deposit since these risky loans were withdrawn during the financial crisis.

It is set to launch a new deal on Monday that will allow homebuyers to borrow up to 100 per cent of a property’s value as long as they have a parent or guardian willing to support the loan.

Where are the regulators in all this? They've learned nothing from the 2008 financial crisis and banking collapse.

Edited by ingermany

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This Govt. backed housing Ponzi is now so apparent even someone with a double digit IQ should be able to figure it out...

I can confirm that the penny has dropped here. Dont know wot my IQ is... :)

Ive offered my neck to the zombies and am buying a repo flat and getting on with other stuff. I have "joined" them....

Its clear that gubmint/politicos have too much to lose on a personal basis, to ever let the ponzi go down.

Borrowing £108k against £180k and plan to be through the debt like shit through a goose, with 10% over payments each year.

Time to get inside the tent and piss out. Albeit with a slightly heavy heart. I'm still expecting prices to drop, but i cant face magnolia slavebox hell for another year, and i'd like to put up some pictures and get a moggy!!

Rental prices have been the main factor here. If i continued to rent within commuting distance of London i simply wouldn't bother working there any more. There is no quality of life renting in the south east, not on slightly above the average wage anyway. I'd be literally working for the taxman and a landlord.

If what i saw on Max Keisers weekend show is correct, i'm figuring that my shiny stash may well clear the paper debt quickly enough.

This isn't one of those "bye and thanks for all the fish" posts though, im not going anywhere.

Try to curb your indifference. :)

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FT

100% advance guaranteed with charge on mum and dad's house.

1. so much for social mobility. loans are now given only to people whose parents own property.

So what's new? Inheritance and BoMD apply that principle.

2. the concept is a non-starter. The bank will never get equity from parents iff offspring default. the govt. has outlawed repossession. They're not going to repo pensioners because their kids have screwed up. the guarantee is a sham.

So if they allow if for parents who are not asset-rich beyond the family home, they treat it the same as equity release, meaning the asset sits on their books for the parents' lifetime and gets repaid from the estate.

Doesn't look like it's inventing any new principles.

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I can confirm that the penny has dropped here. Dont know wot my IQ is... :)

Ive offered my neck to the zombies and am buying a repo flat and getting on with other stuff. I have "joined" them....

Its clear that gubmint/politicos have too much to lose on a personal basis, to ever let the ponzi go down.

Borrowing £108k against £180k and plan to be through the debt like shit through a goose, with 10% over payments each year.

Time to get inside the tent and piss out. Albeit with a slightly heavy heart. I'm still expecting prices to drop, but i cant face magnolia slavebox hell for another year, and i'd like to put up some pictures and get a moggy!!

Rental prices have been the main factor here. If i continued to rent within commuting distance of London i simply wouldn't bother working there any more. There is no quality of life renting in the south east, not on slightly above the average wage anyway. I'd be literally working for the taxman and a landlord.

If what i saw on Max Keisers weekend show is correct, i'm figuring that my shiny stash may well clear the paper debt quickly enough.

This isn't one of those "bye and thanks for all the fish" posts though, im not going anywhere.

Try to curb your indifference. :)

Soon to add the energy companies. ;)

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I can confirm that the penny has dropped here. Dont know wot my IQ is... :)

Ive offered my neck to the zombies and am buying a repo flat and getting on with other stuff. I have "joined" them....

Its clear that gubmint/politicos have too much to lose on a personal basis, to ever let the ponzi go down.

Borrowing £108k against £180k and plan to be through the debt like shit through a goose, with 10% over payments each year.

Time to get inside the tent and piss out. Albeit with a slightly heavy heart. I'm still expecting prices to drop, but i cant face magnolia slavebox hell for another year, and i'd like to put up some pictures and get a moggy!!

Rental prices have been the main factor here. If i continued to rent within commuting distance of London i simply wouldn't bother working there any more. There is no quality of life renting in the south east, not on slightly above the average wage anyway. I'd be literally working for the taxman and a landlord.

If what i saw on Max Keisers weekend show is correct, i'm figuring that my shiny stash may well clear the paper debt quickly enough.

This isn't one of those "bye and thanks for all the fish" posts though, im not going anywhere.

Try to curb your indifference. :)

Very understandable. Peter Schiff used to rent but now owns and is of the opinion inflation will pay down his debt, I'm pretty sure he could have bought outright but he chose not to.

The whole game is rigged. Fiat is only of use to hold debt in it, holding wealth in it is disastrous. Inflation is increasingly looking like the only solution, whether they'll be able to put a lid on it and stop it turning hyper I have no idea.

If I was to buy right now I'd put as little down as possible, ensure all my wealth was out of the system and untraceable and be prepared to post the keys back to the bank and walk away should it all go wrong. N.I. is down 50% and I see no reason why the mainland should be any different, but here we are, three years on and barely any lower prices. It fooking sucks basically!

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So if they allow if for parents who are not asset-rich beyond the family home, they treat it the same as equity release, meaning the asset sits on their books for the parents' lifetime and gets repaid from the estate.

Doesn't look like it's inventing any new principles.

The charge expires in 10 years, but even if the loan goes bad before then the bank will never get any release of the equity from the parents without forcing a sale of the parental home. They're just not going to get away with making 2 household's homeless. it's an empty threat and the accounting is just smoke and mirrors. It's trying to re-invent the old Northern Rock business model. I agree there's nothing new in this. It's just that I thought that the banking industry had learned some lessons.

This small bank is onto a winner though. It faces zero competition at present for the ultra high LTV loans (because it's risky and no reputable bank will touch it). It can charge massive interest rates to create short term profit. And when it goes pear-shaped the directors can take their bonuses and leave the losses to the tax payer. It is criminal irresponsibility and nobody will stop them.

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Very understandable. Peter Schiff used to rent but now owns and is of the opinion inflation will pay down his debt, I'm pretty sure he could have bought outright but he chose not to.

The whole game is rigged. Fiat is only of use to hold debt in it, holding wealth in it is disastrous. Inflation is increasingly looking like the only solution, whether they'll be able to put a lid on it and stop it turning hyper I have no idea.

If I was to buy right now I'd put as little down as possible, ensure all my wealth was out of the system and untraceable and be prepared to post the keys back to the bank and walk away should it all go wrong. N.I. is down 50% and I see no reason why the mainland should be any different, but here we are, three years on and barely any lower prices. It fooking sucks basically!

Easier said than done.....property is now that over priced you would have to have a very high paying secure job with an excellent credit history.......nobody now wants to take on the house price of the future risk, hence 100% quality security is required. ;)

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Very understandable. Peter Schiff used to rent but now owns and is of the opinion inflation will pay down his debt, I'm pretty sure he could have bought outright but he chose not to.

The whole game is rigged. Fiat is only of use to hold debt in it, holding wealth in it is disastrous. Inflation is increasingly looking like the only solution, whether they'll be able to put a lid on it and stop it turning hyper I have no idea.

If I was to buy right now I'd put as little down as possible, ensure all my wealth was out of the system and untraceable and be prepared to post the keys back to the bank and walk away should it all go wrong. N.I. is down 50% and I see no reason why the mainland should be any different, but here we are, three years on and barely any lower prices. It fooking sucks basically!

I'm self employed, (service sector) as a result of me (of my own volition) working less through the last 3 years my accounts are showing declining income, so i had to hike my deposit otherwise it wouldn't have happened.

However i share the philosophy of lowest poss deposit. I also posted a thread on here a while back re debt as a possible jubilee hedge, so in some bizarre way feel i've possibly got on the right side of the deal now.

Who knows what could happen? If Obama uses some sort of jubilee ploy to retain power in the US then everyone will be at it.

Got shiny.

Got cash.

Got debt.

Life is basically tuurning in to a giant hedge everywhere you look.

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Easier said than done.....property is now that over priced you would have to have a very high paying secure job with an excellent credit history.......nobody now wants to take on the house price of the future risk, hence 100% quality security is required. ;)

Yes.

I have a 40% deposit, and it looks like ive just scraped in. Mainly due to accounts not showing increasing earnings, quite the opposite. However i'm lucky enough to have the option of working more should i need to.

This should be the warning sign to stop right there. However the flat im buying is down £45k from last year. If we get a 20% crash from here, im ok with that quite honestly.

Im ashamed to say it on here, but this flat will one day :ph34r:FORM PART OF MY PENSION :o :o :ph34r:

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Easier said than done.....property is now that over priced you would have to have a very high paying secure job with an excellent credit history.......nobody now wants to take on the house price of the future risk, hence 100% quality security is required. ;)

TBH I doubt I'd get a mortgage now despite have had one in the past and paid the thing off entirely. Last two credit cards I applied for got declined. Misses says it's the fact I've £15k outstanding on the ones I have (12 months interest free, be clearing them off next month).

Thought it would be a good idea to build up some available credit in case of a SHTF scenario, still not got up to 1:1 with my wage yet despite having half a dozen cards. Misses on the other hand has more available credit on hers and earns a lot less than me.

May have a punt at applying for a mortgage in principle with my old lender and see what they say. I'm curious more than anything.

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snip

This small bank is onto a winner though. It faces zero competition at present for the ultra high LTV loans (because it's risky and no reputable bank will touch it). It can charge massive interest rates to create short term profit. And when it goes pear-shaped the directors can take their bonuses and leave the losses to the tax payer. It is criminal irresponsibility and nobody will stop them.

this small bank is not onto a winner...hopefully, the few investors in it who are looking for high return for high risk, maybe. They had better keep a very sharp eye on the Directors and their lending policy though.

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FT

100% advance guaranteed with charge on mum and dad's house.

1. so much for social mobility. loans are now given only to people whose parents own property.

2. the concept is a non-starter. The bank will never get equity from parents iff offspring default. the govt. has outlawed repossession. They're not going to repo pensioners because their kids have screwed up. the guarantee is a sham.

3. The interest rate of 6.48% for 3 years is just a cynical ploy to make quick money for the bank. they will dump the risk on the taxpayer when it goes wrong.

Where are the regulators in all this? They've learned nothing from the 2008 financial crisis and banking collapse.

....filling their balance sheet with kamikaze assets...going for commissions and bonuses ....managed by idiots....regulators....?...huh...who are the regulators now...? ...surely it's not still that failed unit set up by Gordo Clown ...which he named the FSA..... :rolleyes:

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Why would parents let their children borrow against their house at 6.5% when they could borrow the equity against their own house at about 2.5% and charge their children what it is costing them?

Seems little point paying the extra 4% per annum to a bank that is taking no risk.

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Why would parents let their children borrow against their house at 6.5% when they could borrow the equity against their own house at about 2.5% and charge their children what it is costing them?

Seems little point paying the extra 4% per annum to a bank that is taking no risk.

Because the little sods are more likely to decide not to pay the money back. Family loans are notoriously difficult to collect.

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Very understandable. Peter Schiff used to rent but now owns and is of the opinion inflation will pay down his debt, I'm pretty sure he could have bought outright but he chose not to.

The whole game is rigged. Fiat is only of use to hold debt in it, holding wealth in it is disastrous. Inflation is increasingly looking like the only solution, whether they'll be able to put a lid on it and stop it turning hyper I have no idea.

I bought for the same reason, fiat looking more and more risky. I used a larger mortgage than necessary @2.19% to keep savings in NS&I certs at RPI+1%. I am now spending those savings on building materials and lots of insulation (i.e. useful/real stuff with an effective real return).

I plan to run down cash savings to a level suitable for emergencies and keep only one months wages in uk banks (difficult to do otherwise). I am genuinely concerned about an overnight devaluation wiping out the remaining value of my savings.

I can even get unlimited free food from my neighbour (as long as I like salad!)

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I bought for the same reason, fiat looking more and more risky. I used a larger mortgage than necessary @2.19% to keep savings in NS&I certs at RPI+1%. I am now spending those savings on building materials and lots of insulation (i.e. useful/real stuff with an effective real return).

VMR - thats a great mortgage rate. Which provider?

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HSBC Lifetime Special Tracker. Was base +1.69% in December 2010, now base + 1.99% for <60%LTV. Nearly free money given the level of inflation.

You mentioned the fear of an overnight devaluation. But i would be more concerned about taking on a load of debt on a tracker and then seeing an overnight rate rise. What's your hedge against that? Or do you not view that a serious risk?

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The charge expires in 10 years, but even if the loan goes bad before then the bank will never get any release of the equity from the parents without forcing a sale of the parental home. They're just not going to get away with making 2 household's homeless. it's an empty threat and the accounting is just smoke and mirrors. It's trying to re-invent the old Northern Rock business model. I agree there's nothing new in this. It's just that I thought that the banking industry had learned some lessons.

This small bank is onto a winner though. It faces zero competition at present for the ultra high LTV loans (because it's risky and no reputable bank will touch it). It can charge massive interest rates to create short term profit. And when it goes pear-shaped the directors can take their bonuses and leave the losses to the tax payer. It is criminal irresponsibility and nobody will stop them.

If/when these loans go wrong, they will just pass the debt to a collections agency, the banks don't care if you end up homeless.

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If/when these loans go wrong, they will just pass the debt to a collections agency, the banks don't care if you end up homeless.

...if they all go wrong we just shut the Bank ...no bail out...the homeless will be housed by the taxpayer...as things stand .... :rolleyes:

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The banks motto is 'Aldermore for us'

:rolleyes:

Quote

Aldermore, a small bank that set up in 2009, is to become the first national lender to offer mortgages to borrowers without a cash deposit since these risky loans were withdrawn during the financial crisis.

It is set to launch a new deal on Monday that will allow homebuyers to borrow up to 100 per cent of a property’s value as long as they have a parent or guardian willing to support the loan.

FT

100% advance guaranteed with charge on mum and dad's house.

1. so much for social mobility. loans are now given only to people whose parents own property.

2. the concept is a non-starter. The bank will never get equity from parents iff offspring default. the govt. has outlawed repossession. They're not going to repo pensioners because their kids have screwed up. the guarantee is a sham.

3. The interest rate of 6.48% for 3 years is just a cynical ploy to make quick money for the bank. they will dump the risk on the taxpayer when it goes wrong.

Where are the regulators in all this? They've learned nothing from the 2008 financial crisis and banking collapse.

Edited by Saving For a Space Ship

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...if they all go wrong we just shut the Bank ...no bail out...the homeless will be housed by the taxpayer...as things stand .... :rolleyes:

why would the closure of the bank mean borrowers are homeless?

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  • 338 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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