Sunday, Dec 03, 2006

More pensioners on a mortgage

The Observer: Now baby boomers climb back on the mortgage merry-go-round

More than one in 10 mortgages are now taken out by people over 50, according to the Council of Mortgage Lenders - and the proportion could rise as that age group becomes more adventurous.

Posted by jellycaster @ 02:26 PM (427 views)
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3 Comments

1. nearly30 said...

Hopefully banks will get a bit nervous when they read statements like this:

"The FSA is very unpredictable on this one,' says Samuel, former Ombudsman and now a consultant. He believes it is possible that one day the regulator will fine a lender for irresponsible lending (especially if property prices fall, leaving pensioner-borrowers with negative equity.) Equally, an individual who cannot repay might bring a claim one day against a lender, alleging that the loan should never have been made."

Trouble is I would only want this to occur if they bundled it into any irresponsible lending, that includes 6 x multiple to FTBs (yes Merv!!).

Although, why protect people like the Baby Boomers who should know better and have had mortgages before and have been through at least 1 cycle of negative equity / recession in their economic history.

Then again - it is almost a given that Baby Boomers will get protection in some way - I doubt the same will be true for anyone under 30!?

However, the argument is mixed by those 'in-good-faith' parents who have MEWed to help FTBs. I have less sympathy for those who have bought-to-launder, bought abroad or simply 'flashed-the-cash'.

It's all bad which ever way you look at it. Well I'm no economist - I'm sure Chief Sitting Bull Merv knows best!

Sunday, December 3, 2006 06:03PM Report Comment
 

2. Nohpc said...

Well he certainly knows better than you that's for sure!

Monday, December 4, 2006 04:38AM Report Comment
 

3. iguana said...

nearly30
Please try to research before posting, I suggest looking at the financial and political crisis around devaluation in the 60's, the similar situation in the 70's and the boom/bust of 88/92, all of this hit the 'boomers'. This was not 'protection'.

Monday, December 4, 2006 06:47PM Report Comment
 

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