Subprime V2

[DimPrawn]

http://www.timesonline.co.uk/tol/mon...cle6921785.ece

Coventry offers 125 per cent loans to homemovers.

Cool, just what the economy needs, people borrowing over the value of their property.

How long before Brown and Co. are bailing out Coventry BS with some more freshly printed ££££?

[d000hg]

Their existing loan will effectively be "ported" to the new property. No additional borrowing is allowed.

Not quite the same... if you're in negative equity you may already have an LTV of over 100%, so they just allow you to change with property that is on.
Seems a good idea, historically people can get trapped in their house when prices fall, which sucks if you need to move for the purpose of getting a job.

Still, always good to sensationalise these things

[Doggy Styles]

Not quite the same... if you're in negative equity you may already have an LTV of over 100%, so they just allow you to change with property that is on.
Seems a good idea, historically people can get trapped in their house when prices fall, which sucks if you need to move for the purpose of getting a job.

Still, always good to sensationalise these things

What is the collateral on the loan?

Doesn't it amount to the same thing? Aren't Coventry effectively buying up debt where the debtor does not have the assets to cover the loan?

If not, what am I missing?

[bobhope]

Banksters: shooting's too good for them.

[DimPrawn]

Not quite the same... if you're in negative equity you may already have an LTV of over 100%, so they just allow you to change with property that is on.
Seems a good idea, historically people can get trapped in their house when prices fall, which sucks if you need to move for the purpose of getting a job.

Still, always good to sensationalise these things

Idiot. They are offering their customers 125% the value of the asset. This is how banks like Northern Rock operated.

I hope you don't make business decisions.

[BrilloPad]

The only way out is to borrow more. You know it makes sense.

Maybe we will soon see a 150% loan you can pass onto your grandkids?

[SantaClaus]

I cant see anything wrong with borrowing loads.

Our government are doing it