Gordon Brown to bar 100pc mortgages

[Doggy Styles]

Saving a deposit is the best way of demonstrating to a potential lender that you can pay back the money.

It is an important part of 'due dilligence' that lenders should be carrying out on borrowers, and haven't been for the past 10 years.

We had such a system for several decades and most people still managed to save up a deposit and buy if they were determined enough.

We all have a share in the money being lent (and we're all suffering now that it's gone tits up), so I for one would heartily welcome a return to it.

[Bagpuss]

This should have been done years ago and I was personally complaining that this was a major problem while banks were allowing mortgage increases for consumer items such as cars, kitchens and repaying of unaffordable credit-card debts. The guys an idiot and should never have been Chancellor let alone PM. Low interest rates were never the problem, but lack of credit controls certainly was.

So when you were investing large lump sums of money in the Northern Rock and their 125% mortgage deals business model, you were also complaining such idiotic terms shouldn't be allowed.

You couldn't make it up!

[OwlHoot]

What is wrong with saving for a mortgage.

Nothing if you can, and not have to rely on your savings for something else ..

In the good old days (cough) you had to save for years then beg the building society manager......

These aren't the good old days. They're the bad new days, and for most peopls job security isn't what it was.

[Cyberman]

Nothing if you can, and not have to rely on your savings for something else ..



These aren't the good old days. They're the bad new days, and for most peopls job security isn't what it was.

That's all the more reason to disallow mortgages. Continuity of employment is vtal to ensure repayment. If somebody cannot save, then they cannot be trusted repay a mortgage either.

[Cyberman]

Many young people could happily afford a mortgage (especially with low interest rates). After all, if they're living away from home they'll be paying rent anyway.

But they're unlikely to have a giant deposit handy, or any propect of getting one soon, and would be reluctant to blow the lot on a mortgage even if they did.

I agree mortgages shouldn't be handed out to people unlikely to pay. But my point was specifically about deposits, which as you evidently hadn't noticed, is what we are talking about given McDoom's stated aim of abolishing 100% mortgages.

Interest rates may be low at the moment but they will not be for the whole life of a mortgage, so just because a mortgage can be afforded now does not mean that it can be next year etc, as many current people now having their houses repossessed are finding out.

Deposits or equity are vital for the stability of the economy, as the current crisis has shown. Brown is right, but is a stupid man because he knew this years ago.

You appear to be in denial of the obvious causes of the current crisis.

[minestrone]

Sooner we have Captain George Mainwaring in charge of the banks then the less of a problem we have.

[BrilloPad]

Nothing if you can, and not have to rely on your savings for something else ..



These aren't the good old days. They're the bad new days, and for most peopls job security isn't what it was.

So all the more reason to save for a deposit then.

House owning is a privelidge : not a right.

[Platypus]

House owning is a privelidge : not a right.

True, but no politician would ever dare say this

[MPwannadecentincome]

True, but no politician would ever dare say this

Didn't Maggie Thatcher try to say it was the other way round?

[Platypus]

Yes she did, and argued the case convincingly.

I suppose it can be argued either way.