bazzz

That probably wouldn't be a bad idea. It seems that you can't trust the banks or their customers to make sensible decisions. There's a real need for a nanny state because people are so ****ing stupid.

Steve_P

This is not necessarily limited to the UK.

seanyg

Hmmm nice idea but, as ever, it's only open to 'key workers and 'vulnerable' people' - ie nurses or firemen, or those already on benefits (who wouldn't be able to afford a 95% mortgage anyway!).

Why is it that the only financial assistance our government are willing to give is to the true poverty-stricken? (I say 'poverty' with my tongue in my cheek as no-one suffers true poverty nowadays, not with credit cards available to all and sundry). You have to be on a joint income of #15.5k to get any kind of help - that's less than #8k each! Surely no-one's on #8k nowadays??

Sorry to sound belligerent but it just seems you don't get any help till you're already in max debt and are living off breadcrumbs and stale water... :curse:

Dave+Jules

I think they could do something similar to Canada with their lending restrictions to include all bills etc to check if you can really afford it. (My experience with the banks in NB of course this may not be government interaction and just conservative bank lending practices)

R I C H

UK lenders already do take into account existing debt and monthly outgoings. If you've no deposit, are relying on income multiples of 5 or 6x your salary, and want to pay interest only on your mortgage payments, then you can't really afford to buy a house, so when he market drops, you've only yourself to blame.

ireland2canada

Yep, this is known as 'affordability' lending as opposed to 'income' lending. I spent 4 years processing mortgage business for a well known high street bank. Residential & buy to let. When I left the company about a year ago, they were practically giving the money away. And this was one of the more prudent lenders out there!
Even at that, people would literally beg for bigger & bigger mortgages, sums of money that made my eyes water. It was the height of foolishness & greed - on the customers part as well as the banks.
The vast majority of the time, people were buying relatively new, large, well appointed properties. New builds, nice swanky apartments and so on. Whatever happened to buying some run down old pit that no one else wants and working hard to make it nice? People are greedy, I'm so glad I don't work in that field any more!

On a sobering note......http://uk.news.yahoo.com/pressass/20...s-6323e80.html
Historically when the big 'uns like Abbey put up their rates, everyone else is forced to follow.

Cassie 10000

I know what you are saying but I don't think the banks should have offered these types of mortages in the first place.

Just like loans, they used to be really hard to get but nowadays you can get one in an afternoon. Why has debt become the norm, people don't seem to care.

I don't understand why someone would want to only pay only the interest on a mortage, why not rent?

I think some people did know deep down that the property boom wasn't going to last.

Dave+Jules

Thats what I was saying, customers know in their hearts it isnt a good idea and yet in some cases they take that mortgage because they need to move/expand (children) etc Banks have a duty to the customer, the banks shareholders to lend responsibly just as many people have a duty to do their job responsibly.

Poor ethical management = sub prime mess

KJM

Hi

And good luck

My house is on the market as from monday and I have made it quiet clear with my E/AG that I'm not desperate also I don't have to move, so I wont be accepting any unreasonable offers. It's in his interest to get more because of his commission

G586

It doesn't make enough of a difference, they just want the bulk of the fee, not the fraction extra.

It's the excess lending that has inflated house prices, more than just would have been the case if the house prices had kept in line with incomes rising.

KJM

Hi

Thanks for the comments.

As a Surveyor myself I know the extra is important. More so now as E/Ag are going under at the min....two near me have asked other E/Ag to buy they stock....E/Ag are now a desperate profession as jobs are at risk.

Matt87150

Hi

We are moving from France To Peterborough On, our Estate/Immos are charging between €8k and €14k for a €185k house with that and the Euro-sterling rate we may be here some time! As for answers to annoying questions a friend responded with "problem with the Tax man so need to disappear" funny got no more questions!

Matt