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Does anyone still offer 100% mortgages?

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  • 26-03-2009 8:01pm
    #1
    shamblertine
    Closed Accounts Posts: 888 ✭✭✭


    I know AIB does but do any other banks/building societies offer 100% mortgages?


«13

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    #2
    ntlbell
    Registered Users Posts: 16,288 ✭✭✭✭ntlbell


    thankfully, I don't think any are now


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    #3
    shamblertine
    Closed Accounts Posts: 888 ✭✭✭shamblertine


    why do you say thankfully?


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    #4
    CamperMan
    Registered Users Posts: 1,835 ✭✭✭CamperMan


    ntlbell wrote: »
    thankfully, I don't think any are now

    why are you thankful for that?


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    #5
    ntlbell
    Registered Users Posts: 16,288 ✭✭✭✭ntlbell


    shamblertine wrote: »
    why do you say thankfully?

    Have you been out of the country for a long time?


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    #6
    CamperMan
    Registered Users Posts: 1,835 ✭✭✭CamperMan


    OP read this. link


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    #7
    shamblertine
    Closed Accounts Posts: 888 ✭✭✭shamblertine


    ntlbell wrote: »
    Have you been out of the country for a long time?

    so 100% mortgages caused the crisis?


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    #8
    ntlbell
    Registered Users Posts: 16,288 ✭✭✭✭ntlbell


    shamblertine wrote: »
    so 100% mortgages caused the crisis?

    It hand a very big hand to play yes.


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    #9
    shamblertine
    Closed Accounts Posts: 888 ✭✭✭shamblertine


    ntlbell wrote: »
    It hand a very big hand to play yes.

    thats just not true


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    #10
    testicle
    Closed Accounts Posts: 5,430 ✭✭✭testicle


    Does anyone offer mortgages anymore ?


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    #11
    lucky-colm
    Closed Accounts Posts: 798 ✭✭✭lucky-colm


    doubt if aib still do 100% mortages


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    #12
    ntlbell
    Registered Users Posts: 16,288 ✭✭✭✭ntlbell


    shamblertine wrote: »
    thats just not true

    How so?


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    #13
    shamblertine
    Closed Accounts Posts: 888 ✭✭✭shamblertine


    lucky-colm wrote: »
    doubt if aib still do 100% mortages

    They do for professionals whose salary is likely to increase to 60k or so in the next 3-5years, which hopefully includes me although I'm not qualified yet.


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    #14
    shamblertine
    Closed Accounts Posts: 888 ✭✭✭shamblertine


    ntlbell wrote: »
    How so?

    lets not get into a long boring pointless drawn out argument and agree to disagree :)


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    #15
    CamperMan
    Registered Users Posts: 1,835 ✭✭✭CamperMan


    shamblertine wrote: »
    They do for professionals whose salary is likely to increase to 60k or so in the next 3-5years, which hopefully includes me although I'm not qualified yet.

    sounds unfair to me, why should someone earning big bucks get a 100% mortgage when they can clearly afford the deposit.


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    #16
    shamblertine
    Closed Accounts Posts: 888 ✭✭✭shamblertine


    because they would be lower risk than people earning less


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    #17
    leeroybrown
    Closed Accounts Posts: 7,563 ✭✭✭leeroybrown


    CamperMan wrote: »
    sounds unfair to me, why should someone earning big bucks get a 100% mortgage when they can clearly afford the deposit.
    Banks have a very narrow definition of 'professional'. They'd happily give money to people in this category such as newly qualified doctors and other people who fall into their definition of career professions who have a very good chance of being good for the money.


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    #18
    CamperMan
    Registered Users Posts: 1,835 ✭✭✭CamperMan


    shamblertine wrote: »
    because they would be lower risk than people earning less

    is that so??, architects are losing jobs, solicitors that deal with the property side of things are struggling, there are many professional jobs that are no longer safe!


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    #19
    greendom
    Registered Users Posts: 16,382 ✭✭✭✭greendom


    Bearing in mind the continuing fall in house prices, as soon as a 100% mortgage is offered, it is worth more than 100%. Putting aside the mess the banks are in at the moment and their reluctance to lend anybody anything, handing out loans that are a high proportion of the house value is just lunacy currently.


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    #20
    shamblertine
    Closed Accounts Posts: 888 ✭✭✭shamblertine


    CamperMan wrote: »
    is that so??, architects are losing jobs, solicitors that deal with the property side of things are struggling, there are many professional jobs that are no longer safe!


    I know but professionals are no more likely to be losing their jobs than non professionals, in which case the higher earner will be viewed more favourably


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    #21
    shamblertine
    Closed Accounts Posts: 888 ✭✭✭shamblertine


    greendom wrote: »
    Bearing in mind the continuing fall in house prices, as soon as a 100% mortgage is offered, it is worth more than 100%. Putting aside the mess the banks are in at the moment and their reluctance to lend anybody anything, handing out loans that are a high proportion of the house value is just lunacy currently.

    but negative equity isn't going to affect your ability to make repayments, so it doesn't make any difference to banks if you have a 100% mortgage or a 92% mortgage


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    #22
    Plastic Bari
    Closed Accounts Posts: 55 ✭✭Plastic Bari


    I think 95% Would be a good and fair target! Has anybody seen 95% around ? Everywhere i seem to look its always 92% !!!


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    #23
    greendom
    Registered Users Posts: 16,382 ✭✭✭✭greendom


    shamblertine wrote: »
    but negative equity isn't going to affect your ability to make repayments, so it doesn't make any difference to banks if you have a 100% mortgage or a 92% mortgage


    Well it does to the bank if you default. And in the current climate, it's a bad idea both for the lender and borrower to have such a high loan percentage.

    I agree that if you don't intend to move and you have no problem in making the repayments, then negative equity doesn't matter at all. There's no guarantee that this situation will continue for the length of the mortgage though is there ?


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    #24
    lucky-colm
    Closed Accounts Posts: 798 ✭✭✭lucky-colm


    shamblertine wrote: »
    They do for professionals whose salary is likely to increase to 60k or so in the next 3-5years, which hopefully includes me although I'm not qualified yet.


    i stand corrected :mad:


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    #25
    shamblertine
    Closed Accounts Posts: 888 ✭✭✭shamblertine


    greendom wrote: »
    Well it does to the bank if you default. And in the current climate, it's a bad idea both for the lender and borrower to have such a high loan percentage.

    I agree that if you don't intend to move and you have no problem in making the repayments, then negative equity doesn't matter at all. There's no guarantee that this situation will continue for the length of the mortgage though is there ?

    Why does loan percentage matter to a bank? Surely its simply a matter of assessing if you can make the monthly repayments.

    If you default, then in the current climate both parties are screwed either way. If the bank repossesses they will be left with a house in negative equity which they won't be able to sell because of policies they have introduced to make it harder to get mortgages. So giving 92% mortgages or 100% mortgages doesn't make a damn bit of difference to them.


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    #26
    shamblertine
    Closed Accounts Posts: 888 ✭✭✭shamblertine


    Plastic Bari wrote: »
    I think 95% Would be a good and fair target! Has anybody seen 95% around ? Everywhere i seem to look its always 92% !!!

    no not according to this website:

    http://www.mortgages.ie/index.cfm/spKey/customers.mortgage_rates.lender_facilities?CatId=1

    although UB offers 95% mortgages to professionals


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    #27
    greendom
    Registered Users Posts: 16,382 ✭✭✭✭greendom


    shamblertine wrote: »
    Why does loan percentage matter to a bank? Surely its simply a matter of assessing if you can make the monthly repayments.

    If you default, then in the current climate both parties are screwed either way. If the bank repossesses they will be left with a house in negative equity which they won't be able to sell because of policies they have introduced to make it harder to get mortgages. So giving 92% mortgages or 100% mortgages doesn't make a damn bit of difference to them.

    In the current climate I agree with you - and for that reason even 92% is too high - loans should be no more than 70% of the current house value- this gives the borrower more leway if he is struggling and gives the lender more hope of retrieving some of the loan if there is a default


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    #28
    shamblertine
    Closed Accounts Posts: 888 ✭✭✭shamblertine


    but that will just ensure prices keep crashing and remain in negative equity for a long time, which again increases risk for them


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    #29
    greendom
    Registered Users Posts: 16,382 ✭✭✭✭greendom


    shamblertine wrote: »
    but that will just ensure prices keep crashing and remain in negative equity for a long time, which again increases risk for them


    But then that just goes to prove that house prices are still far too high and still have a long way to drop.


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    #30
    MarkR
    Moderators, Regional Midwest Moderators Posts: 11,101 Mod ✭✭✭✭MarkR


    shamblertine wrote: »
    Why does loan percentage matter to a bank? Surely its simply a matter of assessing if you can make the monthly repayments.

    If you default, then in the current climate both parties are screwed either way. If the bank repossesses they will be left with a house in negative equity which they won't be able to sell because of policies they have introduced to make it harder to get mortgages. So giving 92% mortgages or 100% mortgages doesn't make a damn bit of difference to them.

    For preceisely the reason you mentioned. The banks don't want to be left with a house worth less then the outstanding loan. The want a house that they can sell quick to cover what's left of the loan. It's not about your payments, it about what happens if you miss your payments.


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    #31
    oceanclub
    Registered Users Posts: 3,411 ✭✭✭oceanclub


    Plastic Bari wrote: »
    I think 95% Would be a good and fair target! Has anybody seen 95% around ? Everywhere i seem to look its always 92% !!!

    95% would be good for banks if they thought that house prices were going to go down less than 5%. But they know that it's going to be more - therefore, anyone taking out a 95% mortgage, if forced to sell, will not be able to pay back the bank.

    P.


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