crown Posted July 14, 2008 Share Posted July 14, 2008 (edited) http://news.bbc.co.uk/1/hi/business/7506053.stm http://thecrownblogspot.blogspot.com/2008/...n-of-times.html The plan would bar lenders from making loans without proof of a borrower's income, In addition it would prohibit lenders from making a loan without considering a borrower's ability to repay a home loan from sources other than the home's value. Now how many years until the FSA get on board? Edited July 14, 2008 by crown Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted July 14, 2008 Share Posted July 14, 2008 http://news.bbc.co.uk/1/hi/business/7506053.stmThe plan would bar lenders from making loans without proof of a borrower's income, In addition it would prohibit lenders from making a loan without considering a borrower's ability to repay a home loan from sources other than the home's value. Now how many years until the FSA get on board? If they dont, expecty to see US Banks here in force. except, there are no sub-prime mortgages in the UK. Quote Link to comment Share on other sites More sharing options...
SleepyHead Posted July 14, 2008 Share Posted July 14, 2008 (edited) http://news.bbc.co.uk/1/hi/business/7506053.stmThe plan would bar lenders from making loans without proof of a borrower's income, In addition it would prohibit lenders from making a loan without considering a borrower's ability to repay a home loan from sources other than the home's value. Now how many years until the FSA get on board? Staggering that they actually have to write down those rules for lenders. Edit: poor grammer. Edited July 14, 2008 by Khayl Quote Link to comment Share on other sites More sharing options...
eightiesgirly Posted July 14, 2008 Share Posted July 14, 2008 Eric will be pleased. Quote Link to comment Share on other sites More sharing options...
crown Posted July 14, 2008 Author Share Posted July 14, 2008 Staggering they actually have to write down those rules for lenders. sign of the times now Quote Link to comment Share on other sites More sharing options...
bobby9983 Posted July 14, 2008 Share Posted July 14, 2008 (edited) If they dont, expecty to see US Banks here in force.except, there are no sub-prime mortgages in the UK. I think you'll find that there are no sub prime mortgages in the UK... anymore... they all disappeared just before Christmas last year. Or self cert for that matter, no-one can arrange a self cert loan these days without verifying the customer can afford the loan through an accountants letter, bank statements or tax receipts. Also, I doubt that anyone could afford the rates anyway. The only brokers offering self cert are your dodgy directly authorised types and they are being banned on a daily basis so there won't be many around soon. Current "best buys" for self cert are 7% plus with a 25% deposit mortgage. 8% for 85% loans. They are gone. Edited July 14, 2008 by bobby9983 Quote Link to comment Share on other sites More sharing options...
SleepyHead Posted July 14, 2008 Share Posted July 14, 2008 sign of the times now Yep. They might want to add. "Lenders should take care when using sharp scissors." Cos they only hurt themselves if left unattended. Quote Link to comment Share on other sites More sharing options...
tentcity Posted July 14, 2008 Share Posted July 14, 2008 (edited) If they dont, expecty to see US Banks here in force.except, there are no sub-prime mortgages in the UK. All my friends bought their property by taking out sub-prime mortgages. They all lied and exaggerated their income. All of them did this. Edited July 14, 2008 by tentcity Quote Link to comment Share on other sites More sharing options...
crown Posted July 14, 2008 Author Share Posted July 14, 2008 It really does come to something when a lender has to be told by a regulator to check incomes and make sure the loan can be repaid. Quote Link to comment Share on other sites More sharing options...
bobby9983 Posted July 14, 2008 Share Posted July 14, 2008 All my friends bought their property by taking out sub-prime mortgages. They all lied and exaggerated their income. All of them did this. Where are you based? Quote Link to comment Share on other sites More sharing options...
bobby9983 Posted July 14, 2008 Share Posted July 14, 2008 It really does come to something when a lender has to be told by a regulator to check incomes and make sure the loan can be repaid. But in the old world (before Summer 07), the lenders thought that by securitising they had no risk, so why bother with underwriting. The problem now of course is that all mortgage backed bonds have redemption dates and the bank usually will have undertaken to have them back and this is one of the reasons why even well captialised banks don't want to give any money away now. UK sub prime assets are currently being traded at 50p in the £. Quote Link to comment Share on other sites More sharing options...
Wad Posted July 14, 2008 Share Posted July 14, 2008 Hang on a minute. Just stop and think about this - yes really think about it. When in history did bankers to lend to people without asking their ability to pay back the loan or indeed check they had any income or were actually telling the truth? The answer is NEVER in the history of banking has this ever happened before. The fact that the US has had to outlaw these self cert loans indicates just how far form normal banking practice we have departed. Truely staggering! Quote Link to comment Share on other sites More sharing options...
Laura Posted July 14, 2008 Share Posted July 14, 2008 UK sub prime assets are currently being traded at 50p in the £. As much as that? !! Do you think that is too high bobby? Quote Link to comment Share on other sites More sharing options...
crown Posted July 14, 2008 Author Share Posted July 14, 2008 As much as that? !!Do you think that is too high bobby? way too high Quote Link to comment Share on other sites More sharing options...
Dave Spart Posted July 14, 2008 Share Posted July 14, 2008 Edit: poor grammer. ? Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted July 14, 2008 Share Posted July 14, 2008 What will the greedy bankers do now, I'm sure someone will come up with a way to get around it. Quote Link to comment Share on other sites More sharing options...
Flatdog Posted July 14, 2008 Share Posted July 14, 2008 ? Poor 'grammer' Methinks that Eric might be about to go international...the world will never be the same I tellya. Quote Link to comment Share on other sites More sharing options...
huw Posted July 14, 2008 Share Posted July 14, 2008 (edited) When in history did bankers to lend to people without asking their ability to pay back the loan or indeed check they had any income or were actually telling the truth?The answer is NEVER in the history of banking has this ever happened before. The fact that the US has had to outlaw these self cert loans indicates just how far form normal banking practice we have departed. Hmmm .... when people bought stock on margin before the 1929 crash, I doubt the brokers did any income checks. If they had, the margin calls wouldn't have been so devastating. It didn't matter -- everyone knew that the stock was going to rise. To me, this seems very similar to mortgage lenders' recent assumptions and approach. (edit: it may have been brokers rather than bankers doing the lending, but it seems functionally equivalent). Edited July 14, 2008 by huw Quote Link to comment Share on other sites More sharing options...
SleepyHead Posted July 14, 2008 Share Posted July 14, 2008 ? Sorry, 'grammar'. Thanks for your insightful contribution to this thread. Quote Link to comment Share on other sites More sharing options...
eric pebble Posted July 14, 2008 Share Posted July 14, 2008 Eric will be pleased. Believe it when I see it.... Quote Link to comment Share on other sites More sharing options...
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