100% Mortgages
100% mortgages were singled out as being the single greatest cause of the financial mire we are ALL paying for at the moment. Collapsing banks, false growth, and a generally unregulated mess of inter bank lending across the world, were secondary causes.
This you know, but did you know that lenders are now giving first time buyers loans to cover their deposit? 16% of 1st time buyers are considering taking out a loan to cover their deposit. The FSA have to act now to prevent us sliding back into the chaos of 2008, after we have pumped billions into the financial sector and every single consumer in the UK is still paying the price, never mind job losses, home repossesions and negative equity!!!
100% mortgages were the main origin of negative equity in the first place, which caused defaults on homes which saw lenders to crash. The government have made big noises about ensuring that we never returned to over lending, now it looks like its only a matter of time!
First time buyers banking on property prices falling further to be able to afford to get into the market will be taking a real risk, as many in the industry are expecting a rise-slump and then gradual rise before market recovery.
Considering how regulated the mortgage market is now I would have thought that this practice would be outlawed, but 100% mortgages are still available if you want to take the risk. The general public will end up paying the bill…