Monday, May 11, 2020

Ability to pay has nothing to do with getting a loan

BBC: Can I get a mortgage if I'm only on 80% pay?

Remember NINJA loans, you don't need any income or assets to get a loan. 80% income is still too much as long as you want to buy at an inflated price to keep the house prices up, we got the money. When you can't pay then there can be forbearance and its the banks fault to lend to you rather than your greed.
If all fails, others will bail out the banks for lending to you.
And the economy continues.....

Posted by deepak @ 11:24 AM (1369 views)
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1. cornishman said...

"Lenders are also paying much closer attention to the sectors that mortgage borrowers are working in. If they believe the at-risk industries such as tourism, aviation, hospitality etc are likely to take longer to return to any sense of normality, then they may well decide the risk is too high and ratchet back the lending or just simply not lend at all."

What will probably happen is that the government will come up with a new scheme whereby it insists that lenders lend to 'iffy' borrowers - and guarantees that the tax-payer will bail them out if a problem ensues.

Tuesday, May 12, 2020 12:30PM Report Comment

2. cornishman said...

Sorry deepak - didn't read your header before commenting...

Tuesday, May 12, 2020 12:34PM Report Comment

3. jack c said...

"The Financial Conduct Authority (FCA) is considering giving homeowners a 12-month break from mortgage payments by extending the payment holiday period, according to reports" Source

Let's all sing loudly together

That ain't workin' that's the way you do it
Money for nothin' and chicks for free
Now that ain't workin' that's the way you do it
Lemme tell ya them guys ain't dumb

Tuesday, May 12, 2020 01:27PM Report Comment

4. nickb said...

@ Jack
So everyone gets a holiday, businesses not paying rents, mortgage holders 3 months that may be extended to 12. Very little noise being made over the residential renter. They can't be evicted but no holiday. Suppose extended to 12 months. And the render keeps paying. Then the same mortgage (more or less, bit more interest owning) is paid off with 12 more rental payments.
Why is nobody making any noise about this massive, regressive bung to "homeowners"?

Wednesday, May 13, 2020 11:36AM Report Comment

5. nickb said...

I'm referring of course to the BTL landlord situation

Wednesday, May 13, 2020 11:37AM Report Comment

6. mombers said...

@nickb the government is treading a fine line here. Fewer than half of adults are homeowners now (~62% of homes have an owner occupier in them but 30 year olds living with their parents, lodgers, house sharers with an OO can't be counted as homeowners). At least the government has clocked that the BTL industry is a sitting duck for taxation and can be forced to up their game without raising rents, but the regressive handouts to homeowners are not cool. The annoying thing is that there would be little to no supply destruction if no handouts were given to landowners - any landowner who could afford their mortgage would have to sell, not burn the home or business premises down. Not giving support to businesses though very much results in supply destruction, e.g. job losses and business bankruptcies.

Thursday, May 14, 2020 11:19AM Report Comment

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