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UK Mortgage 90% LTV Fixed Rate Deals Hit Record High

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http://www.marketoracle.co.uk/Article60312.html

While many of the record low mortgage rates launched on to the market are reserved for those with a sizeable deposit, the latest research from moneyfacts.co.uk shows that the higher loan-to-value (LTV) market is going from strength to strength, seeing not only a significant drop in rate but also the number of two-year fixed rate deals on offer hitting an all-time high.

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3 hours ago, Slimline said:

Standby for 100% next, followed by 110% for home improvements. <_<

I briefly worked for Northern Rock just after they went boom, i was shocked by their rhetoric that they do not provide 110% mortgages, but instead they provided less than 100% mortgages and 10% loans, although cant remember if they said it was secured on the property or not.

Still, it was bonkers then and it is bonkers now!

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1 hour ago, lid said:

They learnt that they'd get a bailout

Between 2007 and 2010, HM Treasury made a series of large financial interventions to support the financial stability of UK banking. These interventions supported four broad aims:

  • to protect depositors;
  • maintain liquidity for UK banks;
  • maintain capital for UK banks; and
  • to encourage banks to lend to creditworthy borrowers. to encourage banks to f*** it up again.

In line with international good practice, HM Treasury and the National Audit Office have worked to ensure that the scale and costs of the various government interventions are transparent. This page sets out the work the National Audit Office has done on the banking interventions and answers some frequently asked questions.

All figures are based on the most recently published HM Treasury Annual Report and Accounts (currently for the year ended 31 March 2017) and will be updated annually.

https://www.nao.org.uk/highlights/taxpayer-support-for-uk-banks-faqs/

 

 

 

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5 hours ago, crazypabs said:

I briefly worked for Northern Rock just after they went boom, i was shocked by their rhetoric that they do not provide 110% mortgages, but instead they provided less than 100% mortgages and 10% loans, although cant remember if they said it was secured on the property or not.

Still, it was bonkers then and it is bonkers now!

The Together Mortgage was a 100% LTV mortgage and an unsecured loan on top, later advertised as a 125% loan. IIRC last time I looked at it these loans were actually performing quite well although the borrowers are getting hammered on high rates of interest (see here).

What were you doing for Northern Rock? Seems a bit odd that you don't correctly recall either of the key details of their most famous lending product, particularly as it was widely reported in the press at the time of the crisis.

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45 minutes ago, Beary McBearface said:

The Together Mortgage was a 100% LTV mortgage and an unsecured loan on top, later advertised as a 125% loan. IIRC last time I looked at it these loans were actually performing quite well although the borrowers are getting hammered on high rates of interest (see here).

What were you doing for Northern Rock? Seems a bit odd that you don't correctly recall either of the key details of their most famous lending product, particularly as it was widely reported in the press at the time of the crisis.

25% was the PIUTW component (P1ss it up the wall)

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14 minutes ago, Kurt Barlow said:

25% was the PIUTW component (P1ss it up the wall)

Also, the "Together" was widely misinterpreted at the time as being a reference to getting the mortgage and unsecured loan together but actually it was the beginning of a longer marketing slogan regarding how by working as team lender and borrower could make big changes; "Together we can ruin each other's future".

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11 hours ago, Beary McBearface said:

The Together Mortgage was a 100% LTV mortgage and an unsecured loan on top, later advertised as a 125% loan. IIRC last time I looked at it these loans were actually performing quite well although the borrowers are getting hammered on high rates of interest (see here).

What were you doing for Northern Rock? Seems a bit odd that you don't correctly recall either of the key details of their most famous lending product, particularly as it was widely reported in the press at the time of the crisis.

I was brought in after the crash to help with cleaning up some of their data warehouse problems. I was only there for about 4months, didn't want to be there for longer than I had to be.

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10 hours ago, Kurt Barlow said:

25% was the PIUTW component (P1ss it up the wall)

I thought it was the "Buy-to-Gamble" Mortgage,. Buy a £200k property with the mortgage, then take the extra 50k to Las Vegas, Place it on Red, twice. If you win you pay off the BTG mortgage, if you lose, simply go bankrupt?

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2 minutes ago, dryrot said:

I thought it was the "Buy-to-Gamble" Mortgage,. Buy a £200k property with the mortgage, then take the extra 50k to Las Vegas, Place it on Red, twice. If you win you pay off the BTG mortgage, if you lose, simply go bankrupt?

That is what must be avoided at all costs....when no equity only debt left to pay especially if the cost to service that debt increases people will be handing the keys back in a droves......sure homes are to serve a purpose as a place to live, but when have more than one, one has to try to cut the losses before it is gone........seen it all before.;)

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  • 295 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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