This might stop house prices rising

[DimPrawn]

Bank ends interest-only mortgages without documentary evidence - Telegraph

Britain’s biggest mortgage lender has announced the end of interest-only mortgages without documentary evidence of how the loan is going to be repaid.

....

Other lenders have also tightened their policies on interest-only mortgages this year, with RBS and Coventry Building Society no longer offering this type of deal to first-time buyers.

Now, stick in £500K for into a mortgage calculator (a cheap house near London for a FTB) and look at the repayment for interest only versus actually paying off the debt over 25 years. A big difference.

[doodab]

Will they take "It'll be sold after I die" as an answer?

[AtW]

This should not even be news, it's totally insane documentary evidence was optional to get such a massive loan.

[Support Monkey]

I had an interest only mortgage years ago and the bank had to have a copy of the endowment policy documents so not sure whats changed

[Lockhouse]

When I applied for my mortgage towards the end of last year I was told that HSBC were only issuing interest only mortgages if there was an adequate plan in place to repay the capital, whether ISAs, savings etc. I was told things that "might" happen, like inheritance were not acceptable.

[sasguru]

Sorry what is this mortgage thing of which you speak?

[Ignis Fatuus]

RBS said: “It is prudent for first-time buyers to build up equity in their property by reducing the capital from day one.”

RBS is lecturing us on what is prudent?

[DimPrawn]

When I applied for my mortgage towards the end of last year I was told that HSBC were only issuing interest only mortgages if there was an adequate plan in place to repay the capital, whether ISAs, savings etc. I was told things that "might" happen, like inheritance were not acceptable.

tulip, I was planning on telling them about my "scratch card" capital repayment plan.

[NorthWestPerm2Contr]

Sorry what is this mortgage thing of which you speak?

Don't worry the word will soon be taken out of the dictionary as the next 10 generations will spend their lives paying off the debts of the last generation of b(w)ankers.

[DimPrawn]

Sorry what is this mortgage thing of which you speak?

I need a mortgage as I want to buy this.

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