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When will they learn

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  • 23-07-2010 12:58pm
    #1
    Chris007
    Closed Accounts Posts: 163 ✭✭


    Read an article in the Independent yesterday that really made me wonder if anything has been learned from this financial crisis.

    http://www.independent.ie/business/personal-finance/property-mortgages/banks-have-returned-to-reckless-mortgage-lending-2267944.html

    Personally i know of one young couple who have just bought their first home and were given a 100% mortgage. Maybe its me but it seems that lending practices like that given the situtation we're in is just downright stupid. Another wave of fresh defaulters will surely send us over the edge. Where is the stricted regulation that is needed to keep our financial institutions in line?


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    #2
    Anyone
    Registered Users Posts: 3,376 ✭✭✭Anyone


    You dont have any comment about the couple taking the mortgage? I mean they are the bigger idiots.


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    #3
    Chris007
    Closed Accounts Posts: 163 ✭✭Chris007


    Anyone wrote: »
    You dont have any comment about the couple taking the mortgage? I mean they are the bigger idiots.

    Trust me i agree with you there, but surely the onus is on the lender to asses the risk


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    #4
    Blackjack
    Registered Users Posts: 3,612 ✭✭✭Blackjack


    Chris007 wrote: »
    Read an article in the Independent yesterday that really made me wonder if anything has been learned from this financial crisis.

    http://www.independent.ie/business/personal-finance/property-mortgages/banks-have-returned-to-reckless-mortgage-lending-2267944.html

    Personally i know of one young couple who have just bought their first home and were given a 100% mortgage. Maybe its me but it seems that lending practices like that given the situtation we're in is just downright stupid. Another wave of fresh defaulters will surely send us over the edge. Where is the stricted regulation that is needed to keep our financial institutions in line?

    Who gave them the 100% mortgage?


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    #5
    Chris007
    Closed Accounts Posts: 163 ✭✭Chris007


    Blackjack wrote: »
    Who gave them the 100% mortgage?

    One of the big lenders, lets not name names :p


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    #6
    RoadKillTs
    Closed Accounts Posts: 1,710 ✭✭✭RoadKillTs


    One of the big lenders, lets not name names

    Why not? I'd say its BS. I'd be quite shocked if one the 7 mentioned in that report were giving out 100% mortgages.


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    #7
    Chris007
    Closed Accounts Posts: 163 ✭✭Chris007


    RoadKillTs wrote: »
    Why not? I'd say its BS. I'd be quite shocked if one the 7 mentioned in that report were giving out 100% mortgages.

    Yes it was one of the 7


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    #8
    Blackjack
    Registered Users Posts: 3,612 ✭✭✭Blackjack


    Chris007 wrote: »
    Yes it was one of the 7

    KBC are listed as one of the 7 - was it them?


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    #9
    Chris007
    Closed Accounts Posts: 163 ✭✭Chris007


    Blackjack wrote: »
    KBC are listed as one of the 7 - was it them?

    I'll give in to the peer presure :P I'm almost certain it was EBS


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    #10
    dotsman
    Registered Users Posts: 3,636 ✭✭✭dotsman


    The concept of a 100% mortgage in itself is not a cause of concern, and this is most likely typical Indo tabloid-ism.

    100% mortgages have always been around and always will be. The problem during the boom was that 100% mortgages became the default as opposed to the exception.

    For the average person, a 100% mortgage is not the most suitable LTV, but you have to remember that not every applicant fits the bill of "an average" applicant.

    A more suitable headline for this article would be "Damned if you do, damned if you don't". If people are not complaining that the banks aren't lending and have too strict criteria, they're complaining that the banks are lending and that the criteria aren't strict enough.


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    #11
    Blackjack
    Registered Users Posts: 3,612 ✭✭✭Blackjack


    dotsman wrote: »
    The concept of a 100% mortgage in itself is not a cause of concern, and this is most likely typical Indo tabloid-ism.

    100% mortgages have always been around and always will be. The problem during the boom was that 100% mortgages became the default as opposed to the exception.

    For the average person, a 100% mortgage is not the most suitable LTV, but you have to remember that not every applicant fits the bill of "an average" applicant.

    A more suitable headline for this article would be "Damned if you do, damned if you don't". If people are not complaining that the banks aren't lending and have too strict criteria, they're complaining that the banks are lending and that the criteria aren't strict enough.

    +1


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