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Barnsey

100% mortgages are back!

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26 minutes ago, oatbake said:

I have no problem with this; as long as they don't come looking for bailouts when it all blows up in their faces...

It will, and they will. 

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43 minutes ago, oatbake said:

I have no problem with this; as long as they don't come looking for bailouts when it all blows up in their faces...

QE and ZIRP are continuous bailouts. 

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THIS IS GREAT NEWS !

100% Mortgages mostly appear magically just before a major crash, its last ditch attempt by Bankers to save their sinking Balance Sheets !

The housing market is rigged by Governments and Bankers using various tools like HTB, low rates, 100% Mortgage etc. THEIR ONLY GOAL IS TO KEEP THE PYRAMID CHAIN GOING... But it reaches its breaking point due to unaffordability and collapses.

 

 

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52 minutes ago, oatbake said:

I have no problem with this; as long as they don't come looking for bailouts when it all blows up in their faces...

In the event of a bank failure they won't bail it out, they now bail them in:

https://www.gov.uk/government/consultations/bail-in-powers-implementation-including-draft-secondary-legislation/bail-in-powers-implementation

https://www.bankofengland.co.uk/news/2017/october/the-bank-of-england-approach-to-resolution

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These are not true 100% mortgages though.
They require a guarantor. So they are really just 85% mortgages really.  

The days of 'true' 100% and 125% mortgages are hopefully long gone

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1 hour ago, Barnsey said:

100% mortgages that crashed the economy are BACK: Barclays and the Post Office are among big lenders offering the loan deals to attract first time buyers without a deposit

http://www.dailymail.co.uk/news/article-5719549/amp/Remember-100-mortgages-crashed-economy-Theyre-back.html

Lets have a look.

https://www.postoffice.co.uk/mortgages/family-link

Yeah, right. Barge pole.

The warning text is wrong:

'YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE'

should read:

'YOUR HOMES MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE'

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1 minute ago, jiltedjen said:

These are not true 100% mortgages though.
They require a guarantor. So they are really just 85% mortgages really.  

The days of 'true' 100% and 125% mortgages are hopefully long gone

Yes, the parents bear the risk, not the banks. It’s the same as a bomad-provided deposit, except the bank can claim on the parents’ house instead of taking their cash.

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i think the article is a bit of an attempt at shouting 'panic buy'

if they ever did re-introduce 'true' 100% or 125% mortgages, i would probably panic buy, in those situations its best to panic first before prices rise 50% in a few short months. 

Edited by jiltedjen

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1 hour ago, RickyM said:

THIS IS GREAT NEWS !

100% Mortgages mostly appear magically just before a major crash, its last ditch attempt by Bankers to save their sinking Balance Sheets !

The housing market is rigged by Governments and Bankers using various tools like HTB, low rates, 100% Mortgage etc. THEIR ONLY GOAL IS TO KEEP THE PYRAMID CHAIN GOING... But it reaches its breaking point due to unaffordability and collapses.

 

 

The pushing of 100% mortgages is exactly as you say, as is the use of council tax payers money on commercial property development. Moneyweek had a good article on this a while back moneyweek.com/uk-commercial-property-market/  

I’m never quite sure whether it is an attempted to keep price up by wrong minded people or whether it is even more cynical and pernicious and designed as an exit scam.

Edited by Mikhail Liebenstein

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4 hours ago, jiltedjen said:

These are not true 100% mortgages though.
They require a guarantor. So they are really just 85% mortgages really.  

The days of 'true' 100% and 125% mortgages are hopefully long gone

So if payments can't be maintained when the crash comes, two houses could be sold rather than just the one, bonus! Should help bring prices down that much faster.

Agree that this is a solid sign the top is well and truly here, disagree that the article is screaming panic buy given it's bearish title.

Edited by Barnsey

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This makes me laugh

The Mrs and I went to Barclays last week.

Deposit - 250K

Mortgage needed 250K

Joint income 100K not including investments

Residency in the UK - Me from Dec 2016 (prior to that from birth till2010), Mrs from May 2017

Answer - INELIGIBLE

Same answer from Nationwide today. 

I am quite cool about this but Mrs keeps wittering about having a nest to feather....

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3 minutes ago, Houdini said:

Use a broker - they usually know who to talk to within the back office to get a mortgage...

I think that is the next step although Im in no rush. 

We are living in a nice 4 bed that costs about 30% of our take home after pension and childcare deductions. Nothing is selling locally - the dam is going to crack soon. 

I might buy the Mrs a new car instead to placate her. 

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7 hours ago, oatbake said:

I have no problem with this; as long as they don't come looking for bailouts when it all blows up in their faces...

I actually do have a problem with this.

1. Of course, the government will have to bail these out when they low up

2. In the meantime it just continues to ramp prices further

I wonder how long until we get the 125% mortgages that Northern Rock used to dish out? Hopefully I'll have finished the refurb and sold to live in a van by then......

The flip side of the argument is that free markets should be left to their own devices (although financial markets are heavily regulated fora good reason) but then the argument must too apply to housing. No restrictions on mortgage lending should go had in hand with no restrictions on building... but we're on another planet to those guys. 

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2 hours ago, adarmo said:

I actually do have a problem with this.

1. Of course, the government will have to bail these out when they low up

2. In the meantime it just continues to ramp prices further

I wonder how long until we get the 125% mortgages that Northern Rock used to dish out? Hopefully I'll have finished the refurb and sold to live in a van by then......

The flip side of the argument is that free markets should be left to their own devices (although financial markets are heavily regulated fora good reason) but then the argument must too apply to housing. No restrictions on mortgage lending should go had in hand with no restrictions on building... but we're on another planet to those guys. 

And no deposit pritection for banjs.

Thats the biggy.

As soon as a hovernment underwrites bank deposits, tge banking system needs to ve heavily regulated.

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23 minutes ago, spyguy said:

And no deposit pritection for banjs.

Surely you're joking! The deposit protection is the only reason I keep money in banks and even then I am wary that it might not actually work if push came to shove. 

If there was no deposit protection I would take my money out tomorrow, and so would everybody else. Instant bank run.

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10 minutes ago, Funn3r said:

Surely you're joking! The deposit protection is the only reason I keep money in banks and even then I am wary that it might not actually work if push came to shove. 

If there was no deposit protection I would take my money out tomorrow, and so would everybody else. Instant bank run.

I agree that the protection provides peace of mind, but if it wasn't there we'd all be a lot more critical of what the bank does and their investments. This would mean more people would opt for safer banks and thereby reduces the business of riskier ones

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3 hours ago, Kurt Barlow said:

This makes me laugh

The Mrs and I went to Barclays last week.

Deposit - 250K

Mortgage needed 250K

Joint income 100K not including investments

Residency in the UK - Me from Dec 2016 (prior to that from birth till2010), Mrs from May 2017

Answer - INELIGIBLE

Same answer from Nationwide today. 

I am quite cool about this but Mrs keeps wittering about having a nest to feather....

Did they give a reason or just computer says no? 

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1 hour ago, UnconventionalWisdom said:

Did they give a reason or just computer says no? 

I said to my wife don't blame the talking head - its the computer saying no. 

Edited by Kurt Barlow

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14 hours ago, spyguy said:

And no deposit pritection for banjs.

Thats the biggy.

As soon as a hovernment underwrites bank deposits, tge banking system needs to ve heavily regulated.

Agreed can’t have it both ways. Wasn’t just debtors who got bailed out. Anyone with a pension or savings account did too.

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14 hours ago, spyguy said:

And no deposit pritection for banjs.

Thats the biggy.

As soon as a hovernment underwrites bank deposits, tge banking system needs to ve heavily regulated.

Yes!!

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On 12/05/2018 at 08:21, jiltedjen said:

These are not true 100% mortgages though.
They require a guarantor. So they are really just 85% mortgages really.  

The days of 'true' 100% and 125% mortgages are hopefully long gone

...so they are essentially BOMAD mortgages.

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  • 301 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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