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pcernie
Legend
Joined: Sun Apr 26, 2009 12:30 pm
Posts: 45931
Location: Belfast
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_________________Plain English advice on everything money, purchase and service related:
http://www.moneysavingexpert.com/
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| Mon Feb 28, 2011 3:13 pm |
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l3v1ck
What's a life?
Joined: Fri Apr 24, 2009 10:21 am
Posts: 12700
Location: The Right Side of the Pennines (metaphorically & geographically)
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I still think there should be a law banning 100% mortgages.
Maybe a maximum of 95% would be about right?
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| Mon Feb 28, 2011 7:29 pm |
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tombolt
Spends far too much time on here
Joined: Fri Apr 24, 2009 8:38 am
Posts: 2967
Location: Dorchester, Dorset
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That doesn't bother me so much as too high multiples of earnings. Negative equity isn't such a problem as people who can't afford their mortgages.
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| Mon Feb 28, 2011 7:33 pm |
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l3v1ck
What's a life?
Joined: Fri Apr 24, 2009 10:21 am
Posts: 12700
Location: The Right Side of the Pennines (metaphorically & geographically)
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That's also true.
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| Mon Feb 28, 2011 7:48 pm |
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rustybucket
I haven't seen my friends in so long
Joined: Thu Jun 18, 2009 5:10 pm
Posts: 5837
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I think 90% would be better. Think how quickly a house can drop 10% of its (supposed) value. _________________Jim
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| Mon Feb 28, 2011 9:04 pm |
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l3v1ck
What's a life?
Joined: Fri Apr 24, 2009 10:21 am
Posts: 12700
Location: The Right Side of the Pennines (metaphorically & geographically)
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True but during times of downturn, that could be self limited by the banks (as it has been the last year or two).
When prices are rising, banks tend to be much less cautious. But as recent history has shown, they don't always see the bust coming.
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| Mon Feb 28, 2011 9:15 pm |
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rustybucket
I haven't seen my friends in so long
Joined: Thu Jun 18, 2009 5:10 pm
Posts: 5837
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That's the point though - there's always a bust. So why not lend assuming that it's coming? _________________Jim
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| Mon Feb 28, 2011 10:00 pm |
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finlay666
Spends far too much time on here
Joined: Thu Apr 23, 2009 9:40 pm
Posts: 4876
Location: Newcastle
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The main issue is the organisations lending more than those lending can realistically repay, fiddling sums so you get a mortgage of x degrees more than your net (not gross, so most of that is taxed to start) salary is insane _________________TwitterCharlie Brooker: Macs are glorified Fisher-Price activity centres for adults; computers for scaredy cats too nervous to learn how proper computers work; computers for people who earnestly believe in feng shui.
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| Mon Feb 28, 2011 11:15 pm |
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tombolt
Spends far too much time on here
Joined: Fri Apr 24, 2009 8:38 am
Posts: 2967
Location: Dorchester, Dorset
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The short termism that is a result of being answerable to shareholders. Pragmatism and long term strategy goes out of the window when there're huge profits to be made. By the time it goes south, those few people responsible would hope to have made a huge profit and got out before it was too late. I'm generally not one for government regulation, but certain markets need it. You really can't let Market forces run riot when the organisations involved are too big to fail.
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| Tue Mar 01, 2011 12:20 am |
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dogbert10
Doesn't have much of a life
Joined: Thu Apr 23, 2009 8:23 pm
Posts: 638
Location: 3959 miles from the centre of the Earth - give or take a bit
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Quite agree - if people aren't earning enough, then they shouldn't be given a mortgage that's beyond their finances. Anything else is just asking for trouble.
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i7 860 @ 3.5GHz, GTX275, 4GB DDR3
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| Tue Mar 01, 2011 7:51 am |
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adidan
I haven't seen my friends in so long
Joined: Thu Apr 23, 2009 9:43 pm
Posts: 5048
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When I worked in the field (early 00's) it would be a maximum 90% LTV IIRC. Maybe 95%. 100% and even 110%/120% mortgages were available at one time which just seems a stupid idea from the outset.
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Fogmeister I ventured into Solitude but didn't really do much.
jonbwfc I was behind her in a queue today - but I wouldn't describe it as 'bushy'.
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| Wed Mar 02, 2011 8:20 am |
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