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Post-Btl, How Banks Are Trying To Keep Lending Expanding

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Ok, now the stamp duty changes are in we've had the realisation from all but the fooliest of fools that BTL is over for new entrants. But rather than let the market deflate we've seen the banks introduce various ways of loosening lending to attract more OOs. I thought it might be worth starting a new thread to keep track of these.

So far we've had:

Barclays brings back 100% mortgage

Nationwide raises home loan age limit to 85 years

Halifax raises home loan age limit to 80 years

Any others out there?

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Banks are in competition, so they will compete for more business by lowering lending standards.

I doubt any baks will stand by and say you know what we will scale back the mortgage lending department and write down the value of our loan books.

I expect that if a recession kicks in the BOE will loosen the loan-to-income ratio limit from 4.5x income to 5.5x income, etc.. In a similar way interest rates have been lowered year after year. End result is mortgages until you die (85) and 10 x income mortgages at less than 1%.

I don't wish for the above, however I fail to see an alternative under the current monetary system.

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Banks are in competition, so they will compete for more business by lowering lending standards.

I doubt any baks will stand by and say you know what we will scale back the mortgage lending department and write down the value of our loan books.

I expect that if a recession kicks in the BOE will loosen the loan-to-income ratio limit from 4.5x income to 5.5x income, etc.. In a similar way interest rates have been lowered year after year. End result is mortgages until you die (85) and 10 x income mortgages at less than 1%.

I don't wish for the above, however I fail to see an alternative under the current monetary system.

Indeed. Changing the monetary system is the only other option. Of course that won't happen until the current one completely fails.

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I have a well off friend who went for a mortgage recently and they told him he had to have an interest only one because of affordability reasons.

....could be they get more commission on IO..whatever the lender should be jailed.... :rolleyes:

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Some boomer headbanger on BBC Radio WM was touting the benefits of 99yr inter-generational mortgages this morning:

"You pay it for thirty-three years, your kids the same, and then your grand-kids too. If they're going to inherit the house then they ought to share the cost of buying it..."

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Some boomer headbanger on BBC Radio WM was touting the benefits of 99yr inter-generational mortgages this morning:

"You pay it for thirty-three years, your kids the same, and then your grand-kids too. If they're going to inherit the house then they ought to share the cost of buying it..."

And we have finally reached the end point as Japan hit in 89

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Some boomer headbanger on BBC Radio WM was touting the benefits of 99yr inter-generational mortgages this morning:

"You pay it for thirty-three years, your kids the same, and then your grand-kids too. If they're going to inherit the house then they ought to share the cost of buying it..."

So you'll have one kid, who'll have one grandkid?

Good luck getting the signature of someone who's not been born.

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Some boomer headbanger on BBC Radio WM was touting the benefits of 99yr inter-generational mortgages this morning:

"You pay it for thirty-three years, your kids the same, and then your grand-kids too. If they're going to inherit the house then they ought to share the cost of buying it..."

So who actually ******ing lives in the thing? Unless when the grand kid is born the grandparents are sent to a farm with lots of open space to run around with other old *****? Or more likely the boomer wants the big mansion paid for by his kids and grand kids while they live in relative poverty because of the burden of debt placed upon their heads before they were even conceived.

*****. Deluded selfish *****.

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Some boomer headbanger on BBC Radio WM was touting the benefits of 99yr inter-generational mortgages this morning:

"You pay it for thirty-three years, your kids the same, and then your grand-kids too. If they're going to inherit the house then they ought to share the cost of buying it..."

They're not inheriting the house though are they, they are inheriting 2/3 of the house and buying the other 1/3. Thick as pigshit.

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So who actually ******ing lives in the thing? Unless when the grand kid is born the grandparents are sent to a farm with lots of open space to run around with other old *****? Or more likely the boomer wants the big mansion paid for by his kids and grand kids while they live in relative poverty because of the burden of debt placed upon their heads before they were even conceived.

*****. Deluded selfish *****.

Only some lucky one will have big mansion. In most cases three generations family will be stacked living together under one roof in 2 or 3 bedroom flat or terraced house.

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Increasing credit card limits......cheap personal loans.....all these credit expansion things are supposedly not only good for banks, but also the economy, growth, GDP, businesses, the tax take, employment....in fact everybody!....get it out there. ;)

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Too big to fail banks haven't faced any consequences from rash lending.. Why would they stop ?

Precisely. The lenders that were somewhat more conservative (namely nationwide) have got in on the act too now, as they were punished by having to pay more for other lenders into FSCS for being sensible.

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It's like turkeys voting for Christmas. They really are stupid.

They have short memories. One I was talking to said Trumps 'debt default' is third world economics. I reminded them the Fed only stopped printing ala Mugabe a few months ago. If thats not banana republic economics, what is?!

2008/2009 may as well have been 1808/1809 for all the lessons that were learnt.

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It's like turkeys voting for Christmas. They really are stupid.

They have short memories. One I was talking to said Trumps 'debt default' is third world economics. I reminded them the Fed only stopped printing ala Mugabe a few months ago. If thats not banana republic economics, what is?!

2008/2009 may as well have been 1808/1809 for all the lessons that were learnt.

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the debt dies with the borrower....

They're not inheriting the house though are they, they are inheriting 2/3 of the house and buying the other 1/3. Thick as pigshit.

The bank will hope to cash in at the reading of the will...whosoever wants to take this mortgage...

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They're not inheriting the house though are they, they are inheriting 2/3 of the house and buying the other 1/3. Thick as pigshit.

and that 1/3 might go for care?

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Some boomer headbanger on BBC Radio WM was touting the benefits of 99yr inter-generational mortgages this morning:

"You pay it for thirty-three years, your kids the same, and then your grand-kids too. If they're going to inherit the house then they ought to share the cost of buying it..."

What a ****wit.

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Some boomer headbanger on BBC Radio WM was touting the benefits of 99yr inter-generational mortgages this morning:

"You pay it for thirty-three years, your kids the same, and then your grand-kids too. If they're going to inherit the house then they ought to share the cost of buying it..."

:lol::lol::lol: I won't point out the logical flaws in this argument, but why do they let these people on the radio?

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They have short memories. One I was talking to said Trumps 'debt default' is third world economics. I reminded them the Fed only stopped printing ala Mugabe a few months ago. If thats not banana republic economics, what is?!

2008/2009 may as well have been 1808/1809 for all the lessons that were learnt.

You must enjoy the irony! China, Germany, Japan etc(http://www.bloomberg.com/news/articles/2016-04-29/u-s-puts-china-japan-on-new-watch-list-for-unfair-fx-practices), are on some US FX watch list, as they may (or may not) manipulate their currency. Yet, through printing money, they are able to erode the value of existing debt (people's savings!)....that's fine! Pot, meet kettle!

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