Wil 95% or 100% mortgages ever come back ?

[B16JUS]

Alough these got a lot of people into trouble i found them ok esp if you term over 15years or 20years as you soon start paying it off.

question is will they ever come back ?

[mrmr96]

I expect most people on this thread to say "no".

However I personally would expect them to come back when the housing market starts booming again, since rising prices mean that in a few months after funding a house with a 100% mortgage there will be some equity in it.

The only things that could prevent it IMO would be a unilateral agreement between the banks, or legislation to limit it. Other than that I think it's just a matter of time until the cycle begins the 'upward' bit again.

[Eric Mc]

Of course they will - but not for quite a few years.

Once the collective memory of the current housing collapse has faded (as it will undoubtedly will), a new generation of bank executives will be lured into the seeming profitability of rash lending all over again.

It always goes in cycles.

[Beardy10]

If they do it will be at eye watering interest rates, the rules for the amount of capital a bank has to hold against loans have changed (and will probably change again). Unless banks want to do 100% loans as a loss leader they will be very expensive, personally I think it's more likely that they get legislated out of exsistance.

[NoelWatson]

mrmr96 said:

Other than that I think it's just a matter of time until the cycle begins the 'upward' bit again.

Agreed. But first we need the downwards bit.

[ringram]

Yep, my most accounts we have 30%+ more of down to do first.

[bigandclever]

Alright team, what am I missing here? A variety of 95% and 100% LTV mortgages (apparently) available, for first-timers and re-mortgagers...

95% LTV http://www.money.co.uk/mortgages/95-mortgages.htm
100% LTV http://www.money.co.uk/mortgages/100-mortgages.htm

[jon-]

ringram said:

Yep, my most accounts we have 30%+ more of down to do first.

We better. The difference between average earnings and house prices has never been so ridiculous.

[Road Pest]

bigandclever said:

Alright team, what am I missing here? A variety of 95% and 100% LTV mortgages (apparently) available, for first-timers and re-mortgagers...

95% LTV http://www.money.co.uk/mortgages/95-mortgages.htm
100% LTV http://www.money.co.uk/mortgages/100-mortgages.htm

Existing customers only and the first time buyer bit has probably more strings attached than a Thunderbird set.

[bigandclever]

Road Pest said:

bigandclever said:

Alright team, what am I missing here? A variety of 95% and 100% LTV mortgages (apparently) available, for first-timers and re-mortgagers...

95% LTV http://www.money.co.uk/mortgages/95-mortgages.htm
100% LTV http://www.money.co.uk/mortgages/100-mortgages.htm

Existing customers only and the first time buyer bit has probably more strings attached than a Thunderbird set.

But they are still available, T&C's not withstanding. Are they the kind of proudct that will always be available, even if just as a "Bank ABC offer every kind of product under the sun" bit of marketing blurb?

[mcflurry]

As soon as 1 does, the others will no doubt follow IMHO

[davidjpowell]

If they don't house prices will need to reduce further before many first time buyers will be able to get in the market. Few FTB = few chains.

[Somewhatfoolish]

Sure... next time why not 150%? Or lifetime mortgages? Don't see much evidence the world is getting more intelligent.

[B16JUS]

Somewhatfoolish said:

Sure... next time why not 150%? Or lifetime mortgages? Don't see much evidence the world is getting more intelligent.

I agree a large amount of people done this and didnt think of anything else, even worse if they done interest only.

Ive found it easy and a good way as i dont want to spend ages saving up deposits etc

I have a friend who got a 110% on interest only we all said he is mad but it worked for him he has been saving extra every month and now has a very large chunk to pay off which should take him to approx 80% including the downfall in market.

J

[stompboxx]

I hope they do....at the moment the requirement to have 25% deposit (what you need in reality) is crushing...I earn what most would consider to be a lot of money, I have 20% equity in my flat, yet I cannot move as I need another 6 figure chunk of cash on top as deposit money....that's an insane amount to save up....and if even if I did, I get reward with an interest rate that's literally 10 times more expensive than my current rate. I want to move, I can comfortably afford to move in 'normal' conditions...but I'm going nowhere...

[NoelWatson]

stompboxx said:

I hope they do....at the moment the requirement to have 25% deposit (what you need in reality) is crushing...I earn what most would consider to be a lot of money, I have 20% equity in my flat, yet I cannot move as I need another 6 figure chunk of cash on top as deposit money....that's an insane amount to save up....and if even if I did, I get reward with an interest rate that's literally 10 times more expensive than my current rate. I want to move, I can comfortably afford to move in 'normal' conditions...but I'm going nowhere...

If it is that hard to save the difference, how will paying off the mortgage on the new place be easier?

[stompboxx]

If I saved £2,500 per month every month, it would take 5 years. So is it 'that hard'? Yes, it is.

[NoelWatson]

stompboxx said:

If I saved £2,500 per month every month, it would take 5 years. So is it 'that hard'? Yes, it is.

Must be getting my numbers confused. If you went on to buy the bigger place, how long would it take to pay off the mortgage completely?

[stompboxx]

That's the not the point is it...a mortgage is a long term investment.

[B16JUS]

As above i could pay 2.5k a month on a mortgage rather than the current 1.5k but to get a large deposit to put down would take me years and years