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cashinmattress

Status Quo - Carry On Liar Loans!

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Buy-to-let and parental guarantor mortgages in the UK will avoid new EU rules after officials won a series of key carve outs in final negotiations for the European mortgage directive.

Final negotiations between the European Parliament, Council of Ministers and European Commission concluded last night and it was confirmed that UK buy-to-let mortgages will receive a full exemption from being regulated in the same way as residential deals.

The UK also secured four crucial opt-outs for tough new rules on packaged products that will protect guarantor mortgages, shared equity loans, offset mortgages and endowments.

The directive sought to end the practice of forcing borrowers to take out other products in order to get a mortgage. It would have banned products such as Barclays’ Family Springboard range and Lloyds Banking Group’s Lend a Hand deals as they require savings accounts to be tied to the mortgage.

European Mortgage Federation senior adviser Jennifer Johnson says: “Lend a Hand deals were one of the key issues for the UK, it pushed really hard and managed to get what it wanted.

“It is also an unexpected win on buy-to-let because the best hope was a partial exemption for a long time but it managed to get the full exemption.”

The UK is also understood to have won another exemption that will retain the key facts illustration instead of initial plans to replace it with the European standardised information sheet.

The new rules will see the introduction of a seven day cooling off period, it will remove penalties for early repayment charges and restrict misleading advertising. It will also introduce a rule allowing borrowers to simply return the property to cover any mortgage default as long as it is expressly agreed in the contract, rather than facing claims for the unpaid mortgage payments.

Rapporteur and Spanish MEP Antolin Sanchez-Presedo says: “The new legislation on mortgages will become a reference in terms of consumer protection, financial inclusion and economic stability. It will help to avoid the irresponsible lending and borrowing that were at the roots of the current crisis.”

A draft text from trialogue negotiations is due to be published on 8 May. The European Parliament will cast the final vote on 11 June when it meets in plenary and the new rules should be finalised and adopted in September.

The UK will then have two years to introduce the directive into law through regulation or legislation.

Basically, the EU will operate within some kind of construct that seeks to hold back asset bubbles in property. The UK has made itself clearly the capital of property bubbles now I suppose.

Once again proving that your elected ones are working in your best long term interests.

Sorry Eric - EDIT: following image for your blood pressure.

Hugz.jpg#hugz%20friend

Edited by cashinmattress

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clever headline...toothless in practice:

" It will also introduce a rule allowing borrowers to simply return the property to cover any mortgage default as long as it is expressly agreed in the contract, rather than facing claims for the unpaid mortgage payments."

so, non recourse mortgages under a new rule.....but only if the bank agrees at the outset....thats gonna work!

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clever headline...toothless in practice:

" It will also introduce a rule allowing borrowers to simply return the property to cover any mortgage default as long as it is expressly agreed in the contract, rather than facing claims for the unpaid mortgage payments."

so, non recourse mortgages under a new rule.....but only if the bank agrees at the outset....thats gonna work!

Status Quo today, RE(P)O Speedwagon tomorrow.

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Well seeing as the banks bought this country in 2008 from a mindless idiot, they can have negotiated by their underling whatever suits them best. They seriously need to change the name of this country to bankland.

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Well seeing as the banks bought this country in 2008 from a mindless idiot, they can have negotiated by their underling whatever suits them best. They seriously need to change the name of this country to bankland.

Sure there is a movie in there somewhere? Boris to replace Stallone? :lol:

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Basically, the EU will operate within some kind of construct that seeks to hold back asset bubbles in property. The UK has made itself clearly the capital of property bubbles now I suppose.

Indeed. Entrepreneurship in this country now boils down to slapping magnolia on a few walls and finding a tenant.

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It's not going to stop easily. I know someone who has recently bought to flip for 20% profit although I think he's living in cloud cuckoo land as he's already paid an extortionate London price.

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It's not going to stop easily. I know someone who has recently bought to flip for 20% profit although I think he's living in cloud cuckoo land as he's already paid an extortionate London price.

I never understood how that worked...there is no logic..

the BUILDER is STUPID if those profits are there for the taking.

And if the builder cant afford the build, well, I present HARLEQUIN.

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Are these the same EU regs which are going to ban self cert mortgages which we were discussing last night?

EDIT: don't know.

Competing stores on the interwebs. This one said its been changed, but a more current story from the beeb and elsewhere says it still holds, mentions nothing about BTL.

Wait and see I think.

Edited by cashinmattress

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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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