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Interest-Only Mortgages Make A Return

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http://www.theguardian.com/money/2013/aug/19/interest-only-mortgages-return

A year after they were labelled a "ticking timebomb" by the City regulator, interest-only mortgages are set for a comeback after two leading banks said they would make "low start" deals available to branch customers.

The announcement by the Clydesdale and Yorkshire banks represents the first major revival in interest-only lending after it almost collapsed during the credit crunch.

The two banks – both part of the National Australia Bank group – have launched a range of mortgages that begin on an interest-only basis for the first three years, which would halve monthly payments for some borrowers. The two lenders said they were "the only banks offering this innovative approach as part of their range of mortgage products".

For someone borrowing £250,000, the monthly repayments on the Yorkshire and Clydesdale deals start at just £560, compared with £1,146 on a conventional repayment basis.

The move represents the latest salvo in a mortgage price war which has seen home loan rates tumble to record lows since the government's Funding for Lending scheme was launched a year ago. Two-year fixed-rate deals are now available at rates of below 1.5%, while last month saw Leeds Building Society launch a mortgage with a "zero" interest rate for the first six months – with the interest being added to later payments.

O happy days. Teaser rate mortgages have arrived in the UK.

How exciting.

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Yep the good old BBC have been on their daily ramping this morning, utter madness everybody smiling lots of jokes happy days

for now

Did you see (Hector I think he was called) admitting on TV that a "good friend" had leant him the full 20% for his deposit???

(thought that was fraud - "hector" must be a banker)

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Did you see (Hector I think he was called) admitting on TV that a "good friend" had leant him the full 20% for his deposit???

(thought that was fraud - "hector" must be a banker)

Yeah it was 'Hector' and of course the gingham-wearing posh boy was typical of every first time buyer in the country.

Still, maybe Hector will aptly find all this last ditch ramping his Achilies heel.

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NAB are trying to sell Yorkshire and Clydesdale having already taken the bulk of their loss making loans onto their own balance sheet.I think this is a feeble attempt to gain some market share.I would presume the credit scoring will be tight indeed on these offerings.

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I wonder if it would be worth taking out the most leverage possible (in the other halves name) buying the best house possible. you could then pocket the difference between rent and mortgage repayments.

If there is one thing I learned in Ireland that when the shit really hits the fan repossessions stop, so there will be little chance of getting kicked out for non-repayment (as long as you are in negotiations £300pcm.)

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I wonder if it would be worth taking out the most leverage possible (in the other halves name) buying the best house possible. you could then pocket the difference between rent and mortgage repayments.

If there is one thing I learned in Ireland that when the shit really hits the fan repossessions stop, so there will be little chance of getting kicked out for non-repayment (as long as you are in negotiations £300pcm.)

If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem.

J. Paul Getty

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I wonder if it would be worth taking out the most leverage possible (in the other halves name) buying the best house possible. you could then pocket the difference between rent and mortgage repayments.

If there is one thing I learned in Ireland that when the shit really hits the fan repossessions stop, so there will be little chance of getting kicked out for non-repayment (as long as you are in negotiations £300pcm.)

Yep. Maximum leverage is the key to keeping your home - with no equity it is worth little to the bank so for short term security it would appear to be the way to go. Usual story - do everything to do with money the 'wrong' way and you get help. Save, pay down debts, establish equity - you are doing it for the banks good - not your own. (having a cynical today)

http://www.independent.ie/business/personal-finance/property-mortgages/sell-up-or-get-out-mail-sent-to-homeowners-by-lenders-29489359.html

What is the mood like in SI at the minute Gone to Ireland?

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