Thursday, March 29, 2007

If this is not sub-prime lending… !?

New FTB Cashback Mortgage launched by Co-Op

"As house prices have continued to rise it is important that the lifeblood of the market - First Time Buyers - are given extra help to gain that all important first footing on the ladder... As a responsible lender the Co-operative Bank does not impose costly Higher Lending Charges (HLCs) on borrowers who wish to borrow more than 95 per cent of the value of the property"

Posted by confused76 @ 10:20 AM (1142 views)
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4 thoughts on “If this is not sub-prime lending… !?

  • I would disagree, it’s fixed for five years for a start. also they aren’t talking about 6/7 times your salary like other lenders. although the lack of needing a deposit is a bit dodgy.

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  • george monsoon says:

    NO, sorry Firstrung have completely missed the point here. The “lifeblood” to which they are refering has long since gone into a state of rigor mortis. The only help the FTB’s need is a much required correction in the value of houses. 30 – 40 % should just about do it.

    By the way, I have been trying to talk two friends (FTB’s) to wait for the market to correct, but they are both exhibiting the usual bullish behaviour I have come to expect from the greedy and mis-informed. Both parties have now tied themselves into massive mortgages on modest property. God Help Them! they will need it.

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  • converted lurker says:

    George, other than the editors blog and the review of the week etc. the Firstrung articles are mostly press releases – direct from the sources generally. But TBH I have to say I reckon the co-op deal is a cracking deal if you want to buy now. Can’t disagree wtih your take on the best benefit for FTBs, a correction and over supply (due to BTL piling out and over devlopment) would be good news (except for those who have bought over the past 3-4 years) =:¬(

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  • “the Co-operative Bank does not impose costly Higher Lending Charges (HLCs) on borrowers” – no, but they’re charging 6.29% interest though! I’m usually a big fan of the Co-op, so I find this news very dissappointing – or do they really, mis-guidedly, think they’re “helping” people here???!!

    Converted Lurker – yes, but which press releases do they choose to display and which do they not? And how many do they attach an editorial comment to, denouncing the sentiment of the press release – I’ve seen quite a lot, but generally not when it’s from a mortgage company! Firstrung are in the business of selling mortgages to first time buyers, sorry, I mean “delivering solutions for the first time buyer” as they put it. That’s why they have mortgage rate tables, advertise Pink home loans, and have a page on their website called “mortgage application” (which does exactly what it says on the tin). Never forget that they are themselves a VI.

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