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That's the bedist above the kebab shop fooked

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    That's the bedist above the kebab shop fooked

    http://news.bbc.co.uk/1/hi/business/7254426.stm

    First-time buyers could face a financial headache as the market for 100%-plus mortgages shrinks.

    Four lenders are this week pulling the plug on deals offering mortgages topped up with an unsecured loan.

    The offers allowed first-time buyers to get on the property ladder without a deposit, but were also criticised for letting people take on more debt.

    The move could lead to higher repayments for first-time buyers when they come to remortgage.

    #2
    Seriously. 100%+ mortgage had bad idea written all over them.

    Comment


      #3
      People will still get loans from elsewhere. They'll have to. There can't be many first time buyers that have managed to save up many thousands of pounds for a deposit.

      Stopping mortgages of close to or over 100% is a good idea though, that was always going to end in tears when the market inevitably slowed down.

      All this will do is mean people have to take out more expensive forms of loans, unless they're fortunate enough to have gullible parents that'll lend it to them out of equity on their own homes!
      Feist - 1234. One camera, one take, no editing. Superb. How they did it
      Feist - I Feel It All
      Feist - The Bad In Each Other (Later With Jools Holland)

      Comment


        #4
        Northern Rock - still doing 125%
        How fortunate for governments that the people they administer don't think

        Comment


          #5
          dont first time buyers only make up 28% of the market? even less now?

          Comment


            #6
            Originally posted by Troll View Post
            Northern Rock - still doing 125%


            Some would class that as sub-prime. Oh the irony.

            Feist - 1234. One camera, one take, no editing. Superb. How they did it
            Feist - I Feel It All
            Feist - The Bad In Each Other (Later With Jools Holland)

            Comment


              #7
              Originally posted by BrilloPad View Post
              dont first time buyers only make up 28% of the market? even less now?
              Yes, but they bring new moeny into the market.

              A old person moving house from a £350k house to a £375k house else where doesn't really affect the market. A first time buyer moving into a £200k house bring potentially £200k of new money into the pot.

              Comment


                #8
                It has the feel of a pyramid scheme, with the first time buyers asked for a higher and higher entry fee until it becomes unworkable. Even more so when you see that many first timers involve others in the purchase to be able to afford it.

                Maybe that's why a property crash of some sort is inevitable, regardless of what the banks or government do and have done.

                The only other solution would be to allow for growing wage inflation so people find it easier to get on the ladder.
                Feist - 1234. One camera, one take, no editing. Superb. How they did it
                Feist - I Feel It All
                Feist - The Bad In Each Other (Later With Jools Holland)

                Comment


                  #9
                  Originally posted by PAH View Post
                  The only other solution would be to allow for growing wage inflation so people find it easier to get on the ladder.
                  This scenario is still a house price crash because the value of a house is lower, but the price stays the same.

                  Comment

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