You’d think I would learn my lesson by now, wouldn’t you? I should stop reading the bloody weekend papers… apparently I have been heard to look up from the financial section two weeks running and say, gloomily, “I dont think will ever get a mortgage again”. Good job I’ve got six already then, and an even better job I know a way of buying property without getting a mortgage at all!
Here’s yesterday’s doom and gloom news under the above headline: Gordon Brown plans to ban 100 per cent mortgages in an attempt to prevent a repeat of the reckless loans by banks and building societies blamed for the credit crunch. He has written to City watchdogs at the FSA asking them to begin an urgent investigation into how such loans can be permanently outlawed.
The economic crisis has led to most financial institutions withdrawing 100 per cent home loans – but the Prime Minister wants to make sure that they do not return when the recession is over. Mr Brown also aims to persuade banks to refuse to give loans to people unless they can show they are earning enough money to meet their monthly mortgage payments.
This is patent nonsense as some of the commenters on the Daily Mail website point out.
This wasnt why the meltdown happened. Its locking the stable door after the horse has bolted. I have two 100% mortgages and I havent defaulted on them despite never having been able to prove my ability to pay either of them. The FSA have been totally discredited IMHO. Gordon Brown’s dour Scottish penny pinching ways havent done the country one iota of good in hindsight, have they? To stifle lending and lenders in this way simply won’t work. As one of the commenters on the DM site says, they will find a workaround so long as its profitable for them and us.
I’ve been here before. And whilst I’ve never borrowed from a bank since the last recession (when I was repossessed due to ridiculously high interest rates) and deep in debt, I can remember it was less than three years before all the lenders wanted to lend to me again – HUGE amounts. Lenders have very short memories and as soon as the markets bounce back it will be (greedy) business as usual, lending up to the eyeballs to anyone who wants it.
Don’t make me laugh, Gordon. Actually speaking of laughter, there’s a fabulous joke by Michael McIntyre about having your mortgage at Northern Rock and being worried about it. He advises borrowers and run home and change the locks! That’s more like it. Wish I could find that again on YouTube.
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