Sunday, September 16, 2007

Risk your money not theirs

N&P now require a minimum of 10% deposit for new mortgage business

Norwich and Peterborough Building Society (N&P) has opted to reduce its maximum loan to value (LTV). In times of unrest within the mortgage and housing markets, lenders are taking measures to protect their interests and limit their exposure to market risk...N&P is the latest mortgage lender to revise their rates as a result of this, reducing its maximum LTV down to 90%.

Posted by converted lurker @ 12:43 PM (847 views)
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6 thoughts on “Risk your money not theirs

  • As expected – consider the guys on a limited period golden hello deal – now needing to re-mortgage to avoid a punitive SVR follow-on.

    Oh dear – need a bigger deposit to do that now…

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  • planning4acrash says:

    Basically, anybody with worse than 90% will find it very hard to re-mortgage, I feel for those with 125% mortgages! They won’t be able to get a decent fix for another 10yrs! Hows about people who get into negative equity further along the line?

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  • tyrellcorporation says:

    UT. What’s your take on all this?

    Do you think the BoE will cut rates and/or have they got room to cut rates with inflation still looming large?

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  • planning4acrash says:

    A cut in rates won’t matter one jot for those who can’t re-mortgage as a result of having less than 10% equity. This is not a credit cost issue, its a credit shortage issue. This is a money famine. How long until lenders are asking for 20% equity? If you can’t re-mortgage and have to go to another lender, you may have early payment penalties.

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  • I think the BOE would prefer to do nothing as far as rates are concerned right now, but they might be subject to some political interference…

    Not that it would make much difference if they made a cut – the rates people actually pay have increased, and may well increase further.

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  • Ihopeitgoeswithabang says:

    The last time I got a mortgage of over 90% it carried a premium from the underwriter for the extra 5%. I’d like to know what that is now!
    I guess nobody is willing to underwrite that now ..?
    Banks covering their behinds for a drop.

    Abit off track … the last tenant in my place had a loan he has just defaulted on for over £17,000.00. He was not even a homeowner. Bet you can guess who the loan was with …. yes Northern Rock …lol
    Knowing what I do about the last tenant … what on earth were they doing loaning him £17,000 + ?????? – madness.

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