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DimPrawn
18th November 2009, 20:00
http://www.timesonline.co.uk/tol/money/property_and_mortgages/article6921785.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
18th November 2009, 22:56
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
18th November 2009, 23:04
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
19th November 2009, 07:54
Banksters: shooting's too good for them.

DimPrawn
19th November 2009, 08:12
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
19th November 2009, 08:48
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
19th November 2009, 09:49
I cant see anything wrong with borrowing loads.

Our government are doing it :)