The 100% mortgage is DEAD, will we see the rise of the 99% mortgage ?
May 17th, 2010 by admin
Now that Gordon Brown and the FSA have indicated that there will be no 100% mortgage, will we see the rise of the 99% mortgage (with the buyers having to find the cash for conveyancing and additional mortgage fees) so first time buyers can get on the rung of the property ladder ?
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More like 75%, perhaps even less I think.
According to an article I read yesterday if the FSA have their way then you’ll need at minimum of a 15% deposit and will be only be able to borrow 3 time’s your income!
Doubtful. Hopefully we’ll see the return of the 80% mortgage. Without out a decent down payment, there will always be the potential for your home to end up upside down in a bad market
Unlikely for this to happen. Again we cannot predict any thing like this as the banks goes on changing the rules to attract new customers and FSA again failing to correct this .All these are human greed problems
Commercial banks have prudent lending practices. Most of their lending are security lending. Unlike those aggressive Investment banks whose main objectives are to make more and more profits at the expense of prudent and safe lending practices.
Furthermore such Investment banks are no more functioning as they had been taken over by commercial banks.
I think 3.5% downpmt is probably the absolute minimum for any kind of mortgage anymore and probably more with most types of mortgages
I don’t think we will see anything over 95%, possibly even 90% ever again. If a property is repossessed and then sold at the price it was when the mortgage was taken out the cost to the lender would be 5% or more due to solicitors, estate agents, etc.
For those who have said that it will not go above 75% – 80% there are still lenders out there willing to lend up to 90% albeit at higher interest rates.
I think that mortggage companies will find a way to do it when the market picks up. The new term will be 100% mortgage*
Note the asterix
)
Surely they will be able to lend you 99.9% and then pay the difference themselves or give it you as a cashback deal.. someone will do it.
If you search you can still find information about 100% mortgages.
The information may be out of date on the pages i found, but the term grabs people attention.. so wait and see.
Im sure the 100% mortgage isnt dead!