Saturday, September 17, 2011

Rubbish mortgage lending threat

Genworth warning on risk of high LTV mortgages

The return of 100 per cent loan-to-value mortgages offers false hope for first-time buyers and risks undermining the entire mortgage market, a European mortgage specialist has said. In desperate bid to keep house prices inflated more risky deals are being offered. When will the Government pass a law to prevent this sort of thing happening? Never, I guess, as it has a crazy addition to high house prices, despite the damage they do the economy.

Posted by stuartking @ 12:36 PM (1570 views)
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5 thoughts on “Rubbish mortgage lending threat

  • sibley's b'stard child says:

    Possibly the saddest thing about that is that it even needs saying at all.

    In other news, the HSE have confirmed that sticking your head in an oven is a bad thing.

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  • We're All In This Together says:

    addiction not addition? Not being pedantic but it does clang a bit, and it’s an excellent point. Banks and government like siamese twins on life support – if house prices crash then so do they.

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  • I think that despite all the faults of the previous government, the present one, which, in all honestly rubber-stamped most of the policies of the past government and would have certainly baulked at any idea of further regulating the banks or other financial institutions and the property market, is making the same mistakes.
    Hindsight is a wonderful thing when it comes to dishing out blame for our present problems but it appears nothing has been gained from it. There is very little being done now that wouldn’t have been done if Gordon Brown had been re-elected. In fact, what’s happening now is a blatant disregard of the lessons that should have been learned while pandering to the banks and vested interests of property owners.
    Anyone who voted for the present incumbents must be feeling sick to the stomach or a vested interest. However, even the vested interests will get their comeuppance when the worldwide money powers come knocking at their doors. With a falling pound, forcing fuel and other commodities to rise and eventually forcing interest to rates to rise as price inflation continues to outstrip wage inflation by a huge amount, there is only one way for property prices to go, that’s downwards.
    Instead of looking at root causes of our present problems and tackling them, all Gideon and Dave are doing is kicking the can down the road, while doing their best to look after those whose financed their path to power.

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  • “Aldermore announced it would offer a mortgage at 100 per cent LTV, joining products by Northern Bank, Tipton & Coseley Building Society and Marsden Building Society”

    This topic was discussed last week – the lenders outlined above currently have a combined market share of around 0.5% so the idea that 100% mortgages are making a big comeback simply isnt true. As I stated previously what someone applies for and what someone gets are 2 different things. Lenders often use products simply to stimulate interest, gather customer data and then flog them more profitable insurance products.

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  • 2. stuartking said…

    100% agreed. I voted blue but wish I hadn’t bothered. The same old same old.

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