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Saving For a Space Ship

UK Banks Double Down on High-Risk IO Mortgage Products to Prop Up Housing Mkt  

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2 hours ago, Saving For a Space Ship said:

UK Banks Double Down on High-Risk Mortgage Products to Prop Up Housing Market  

 

https://wolfstreet.com/2019/05/16/uk-banks-double-down-on-high-risk-mortgage-products-to-prop-up-housing-market/

Nothing new in that bar the FT link

https://www.ftadviser.com/mortgages/2019/05/01/partnership-launched-to-help-interest-only-customers/

A partnership has been launched to help lenders with customers on interest-only mortgages that are at or reaching maturity.

You might want to read that a couple of times.

The firms will look at the customer’s financial situation, the property value and the mortgage market and aim to deliver a ‘clear strategy’ for the lender within 90 days.

Options for consumers could include a repayment plan, conversion, a remortgage, a property sale or litigation, but the partnership said both the customer and lender would be engaged throughout the journey to resolution.

This reads like the BoEis forcing the end of IO.

UK ash 1.7m IO mortgages - ~10% of the housing stock.

Dave Miller, client account manager at Spicerhaart Corporate Sales said: "Over the past few years lenders have successfully implemented a wide range of strategies to contact their interest-only customers.

"However, a proportion of those who are often the most vulnerable of customers, are still failing to engage, while many others are now past their term expiry date with no formal agreement in place for resolution.

 

 

 

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Extract..

...according to a Yougov poll, almost half of the UK population think re-introducing zero-down mortgages is a good idea. 

 

The answer is of course more debt...like many (particularly young folk) in my office I hear bemoan not high prices but the challenges they face getting credit.

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18 minutes ago, Wayward said:

Extract..

...according to a Yougov poll, almost half of the UK population think re-introducing zero-down mortgages is a good idea. 

 

The answer is of course more debt...like many (particularly young folk) in my office I hear bemoan not high prices but the challenges they face getting credit.

YEah ..

Trying to describe UK mortgages with US mortgage terms ...

The '0% down' is no such thing.

A family member puts up 10%.

 

 

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  • 311 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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