Sunday, October 29, 2006
Banks throwing money at FTBs
Pretend you are a mortgage broker and plug your details into this calculator here. Depending on your income, and the interest rate available you can be offered anything up to 7.53 times income. Fantastic? Ludicrous? Criminal? You decide. The calculator is hosted by First National, part of GE Money. Fascinatingly, GE's blurb contains the following: "An interest-only mortgage must be backed by an adequate investment vehicle." Ah. So that means that out of the 30 per cent of their income that remains after paying the mortgage interest bill, this couple needs to find money sufficient to invest in a vehicle that will produce a lump sum to pay off their £376,506 mortgage capital debt. Good, prudent advice from GE Money. Question is, what would that leave them to eat?