Thought Id start this one going because its rather dead on this board at the moment and I suppose all my usual muckers are either at the Stella tennis event watching Dim Tim (lose again) or at Henly Regatta eating cucumber sandwiches (they wish,...NOT).

Anyway please feel free to just talk to yourself blast away and let it go on any company or subject you wish. Just wish Id thought of this one before.

cheers GF.

Not over a 20 or 25 year term there aren't

Nothing to see here.

I just wanted post 80000 :-)

My first mortgage I had no deposit and borrowed 100% of the value of the house plus another 25% for improvements. My 5% deposit was deducted from the 25% that was for improvements which was retained by the lender until the work was completed.

In short I bought a house with no deposit and 120% mortgage ... try doing that these days.

If the time comes when the mortgage taker cannot pay, and home prices have dropped below the mortgage value, those that gave the loans will be carrying those loans with far greater than 120% mortgages - In effect another sub-prime market, as property is overvalued, in much the same way as commercial bricks have become of late in many towns.

As hils pointed out earlier , over any 20 to 25 year period it's almost impossible to have negative equity.

That first house I bought was worth about 7x the 120% mortgage after 20 years. It was not bought in a boom or trough year.

In what period would you have bought to have negative equity now clocktower ?

potentially one of the flash apartments along the river at battersea

and of course there have been plenty of people who have bought into the so-called win-win situation only to find that they have to chuck in the towel somewhere along the line

Dil,

Presumably your improvement works increased the open market value of the property by a similar amount to their cost, and by virtue of the fact that your lender wouldn't advance that tranch of the loan until the works were complete, I would argue that your mortgage didn't exceed 100% of the proprty's value.

Returning to the subject of interest-only versus repayment mortgage, I would argue that it's financially more sound to take out the highest affordable interest-only loan possible, and to not even bother with an endowment policy. In practice, the only people who care about you having an endowment policy are the army of mortgage brokers and financial advisors who take an introductory commission.

Taking a 20 year example, the FTSE100 index to which endowment policies tend to track finished 1997 at 5136, and 2017 at 7688. The average house price in 1997 was just over £60k (£104k inflation adjusted) and £226k in 2017.

It's a no-brainer that putting the endowment premiums on deposit and re-leveraging an interest-only mortgage to reflect salary/income increases every 6 or 7 years is the way to go imo.

Hils , so how did I pay the 5% deposit ? I take your point that in reality they lent me 100% although the paperwork said 95% of the total including the retention money but my main point was do they even consider lending you extra these days even on a retention basis.

Cynic , negative equity is just about impossible historically over a 20 year period.

I don't think lenders particularly care about what the percentage they lend, Dil, but rather on the borrower being able to afford the repayments as an income multiple.

Your average Joe on £27.6k a year will probably be able to borrow just under £100k, but, with house prices as they are nowadays, he'll have trouble finding a house that cheap on which he'll be able to borrow 100%. Conversely, someone earning £150k a year will invariably have enough saved for a decent deposit, and therefore have no need to borrow 100%.

Here you are Dil. 200 houses are going for 90p each. I hear you can get a 200% mortgage. And no, it is not in Llanfairpwllgwyngyllgogerychwyrndrobwllllantysiliogogogoch.

I seem to remember our first mortgage was a simple 90% repayment mortgage. The house cost £3,245 and was a simple brand new 'semi' in the East Midlands. The £245 bit was for 'an extra' and being for £250 Gas Central Heating.

When we first moved in as 'newly weds' with absolutely no parental financial support we didn't have any lounge or dining room furniture at all. It was all 'on order' and the delivery period was about 8 weeks. We 'toughed it out' by sitting on the floor and used cardboard boxes as tables.

We were so poor we couldn't afford a telly. I just cannot imagine now how on earth we amused ourselves of an evening? I suppose we read books or whatever? I'm sure you can well imagine me with wifey in one hand and the book in the other?

Ah well, that was 53 years ago. Those books back then, must have been bloody good ones.

ExectLine, I guess your memory must have suffered, as I bet it was not books that kept you busy but a lot of rumpey pumpey, while keeping warm in bed, as it seems that you did at least have a bed. Bet you had a load of kids soon after.

Cheap homes in Europe.Around $1

https://uk.finance.yahoo.com/news/buy-home-charming-italian-town-165746372.html

And when the local mafiosa come calling for the rent?


https://uk.finance.yahoo.com/news/buy-home-charming-italian-town-165746372.html

Yeah very funny iturama I'm not gonna move to Swansea even if you pay me :-)

even if they can thrash arsenal?

very revealing .....

Mr Trump is an avid golfer and is estimated to have spent more than 90 days playing the sport since he entered office.

The president has claimed he has achieved scores of 68, which would class him as a highly skilled golfer, particularly at the age of 71.

But Pettersen (she's one of the top european golfers) said while "golf is the only thing the man thinks about", he is not quite as skilled as he would like people to believe.

"He cheats like hell... so I don't quite know how he is in business," she told Norwegian newspaper Verdens Gang.

"They say that if you cheat at golf, you cheat at business."

You do know what tope means don't you C? Maybe she had been toping when she made that remark.
Besides, it only good manners to give the President that 16ft putt. Or to kick his ball out of the rough. Not cheating at all.