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Nabby81

Return Of 0% Mortgage - Telegraph

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Front page of Telegraph

Basically if Bank of M&D save 10% of the home value into special account with 2% interest rate for 3 years then Couples with income of 50k or more can borrow up to 5.5 times salary for a mortgage

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All I can find is Dicky D scribbling (coherently, for a change) about the dangers of toppy property values flowing from a reckless cultural mix of debt dependency, leverage, low rates and Govt subsidies. Probably not a first draft of his spivfest talk.

Edited by The Knimbies who say No

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As best I understand matters, there isn't really a problem getting very high LTV mortgages, it's just that with house prices where they are relative to earnings, and the affordability rules of MMR, it'll be 95% of not enough to buy a house, hence for London and the South East, their availability is a matter of academic interest only. Others may have looked into this more carefully.

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All I can find is Dicky D scribbling (coherently, for a change) about the dangers of toppy property values flowing from a reckless cultural mix of of debt dependency, leverage and low rates. Probably not a first draft of his spivfest talk.

:lol:

I like it!

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Knimbies - you started this, but I'm going nuclear.

Andrew Sentance singing "Just the way you are", (given my notably tuneless singing, I am in no place to throw stones).

It was, apparently, for charity, so no snickering.

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Knimbies - you started this, but I'm going nuclear.

Andrew Sentance singing "Just the way you are", (given my notably tuneless singing, I am in no place to throw stones).

It was, apparently, for charity, so no snickering.

The video is longer than the time between you posting and my reply- I saw enough to form a judgement. He's in.

(Please may we have more)

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Knimbies - you started this, but I'm going nuclear.

Andrew Sentance singing "Just the way you are", (given my notably tuneless singing, I am in no place to throw stones).

It was, apparently, for charity, so no snickering.

You can't beat some Christian Rock.

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On Guardian website now

http://www.theguardian.com/business/2016/may/04/barclays-offers-0-percent-deposit-mortgage-to-home-buyers

The no-deposit mortgage has returned, with Barclays removing the need for buyers to put down any deposit when buying a home using its “family springboard” mortgage.

The deal had previously allowed people to climb on to the property ladder with a 5% deposit, provided that a “helper” – often the home buyer’s parents – puts cash equating to 10% of the house purchase price into a savings account linked to the mortgage.

Under the new deal, only the 10% contribution from parents is needed. This cash will be returned to the borrower’s parents after three years with interest added – provided borrowers have kept up with their mortgage repayments.

The lender has also raised the maximum amount that home buyers can potentially borrow as a multiple of their income under the deal. Customers with an income of more than £50,000 will be able to borrow up to 5.5 times their income, up from a maximum multiple of 4.4.

A buyer without a deposit could get a three-year fixed rate of 2.99% under the family springboard mortgage, but one with a 5% deposit could get a three-year rate of 2.79%.

Edited by Nabby81

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I didn't realise how out of touch I'd become with regards to mortgage lending... All I keep hearing and reading about is much stricter lending criteria, bigger deposits required, lower ltv's, responsible lending etc etc etc

I'd assumed that a 20-30% deposit was the absolute minimum that any lender would now require... it's only by doing a bit of investigation that I've now realised that 5-10% is more than adequate to satisfy most lenders.

As already said by numerous people elsewhere, it really is 2007 all over again.

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I didn't realise how out of touch I'd become with regards to mortgage lending... All I keep hearing and reading about is much stricter lending criteria, bigger deposits required, lower ltv's, responsible lending etc etc etc

I'd assumed that a 20-30% deposit was the absolute minimum that any lender would now require... it's only by doing a bit of investigation that I've now realised that 5-10% is more than adequate to satisfy most lenders.

As already said by numerous people elsewhere, it really is 2007 all over again.

Me too. That's pretty scary stuff. How much longer can it go on like this?

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desperation a la 2007/8.

This is actually a temporary mortgage linked to a savings account, from which the bank will draw on any payments missed. and a 50K income is actually 2 times average wages.

I expect missing those payments means the money is then locked in to cover future problems.

Like having a child. where 5.5 times joint can quickly become 11 times single in a trice.

maybe thats affordable at 2.79%.

Money, cheap as chips until you have to earn any.

Edited by Bloo Loo

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5.5 x income with 0% deposit. What could possibly go wrong.

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Front page of Telegraph

Basically if Bank of M&D save 10% of the home value into special account with 2% interest rate for 3 years then Couples with income of 50k or more can borrow up to 5.5 times salary for a mortgage

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Heard about this on the radio this morning and it in my opinion it is a really good idea and Barclays for once should be praised. I am sure other lenders will follow with a similar type schemes.

For me I don't see anything wrong either with 100% LTV mortgages or Interest only mortgages for Owner Occupiers only. People aren't that stupid and no fully the risks. I have had interest only mortgages In the past and knew the balance still had to be paid off eventually. I don't really see the issue..

The biggest problem however is still house prices are around 50% over priced in London and the south east and out of kilt with wages in the area.

Average wage in the south East approx. 30K joint £60k. You can/should only borrow x4 your salary so IMO an average 1 bed flat should be around £120k and an average 3 bed house fit for couple looking to have a family should be around £240K.

Funny how these were the kind of prices you were looking at around 12 years ago when the housing market seemed to make sense and was in reach for most people. It is utterly insane at the minute and can only go one way IMO.

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For me I don't see anything wrong either with 100% LTV mortgages or Interest only mortgages for Owner Occupiers only

When mortgage rates get to zero and they are interest only, prices go to infinity.
If interest rate were fixed for the lifetime of the mortgage and jobs were guaranteed, I could almost see your point. But they aren't... so i dont :)

People aren't that stupid and no fully the risks.

People are that stupid and have no idea of the risks.

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