Would you favour a return to 100% mortgages?

Discussion in 'UK Property' started by Longterminvestor, Jun 11, 2019.

  1. Longterminvestor

    Longterminvestor Administrator

    There are signs that one or two mortgage companies are now offering 100% mortgages which would seem to be something of a return to the higher risk days of years gone by. However, should it not be down to homeowners as to whether they take out a 100% mortgage? Or does this type of transaction pose excessive risk to the broader financial system?
  2. diyhelp

    diyhelp Active Member

    Assuming a mortgage applicant has the security to cover a 100% mortgage then to all intents and purposes I see no problem. There may be occasions where their regular income does not support relatively high mortgage funding but if they have security, surely that offers an insurance policy to mortgage providers?
  3. Part of me says it is down to the person if they want to take that risk but the good angel on my shoulder says this is just building up more problems for the future. Mmmmm not sure :)
  4. FWL

    FWL Member

    Part of me says leave this type of issue to the markets, if lenders are happy doing 100% mortgages then leave it up to them, but the last mess this type of investment got us into literally crashed the worldwide economy.

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