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Deposit of 40% for many loans

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Published Date: 06 January 2009
LENDERS are now demanding a deposit of at least 40 per cent for a quarter of all mortgages, figures yesterday revealed.
About 25 per cent of mortgages are currently only available to people looking to borrow 60 per cent or less of their home's value, according to financial information group Moneyfacts.co.uk.

There are just 21 deals across the market for people with a deposit of 5 per cent or less, compared with about 1,200 in February last year.



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  • Last Updated: 05 January 2009 8:25 PM
  • Source: The Scotsman
  • Location: Edinburgh
 
1

A Friend of Fernando Poo,

06/01/2009 13:28:27
Excellent! We should celebrate, albeit belatedly, the return of sensible banking to our shores. This is the sort of thing that will get the recession over.
2

Evan Owen,

The IFA Defence Union 08/01/2009 07:27:10
Fernando's pal missed the point that lending has dried up on all fronts, not just housing. How will that bring us out of recession, whatever recession really is and whether it is a bad thing are questions I can't answer. Why do people expect inexorable growth? Ever increasing wealth has to come from somewhere, unfortunately for us the recent bubble was based on the quicksand of debt.
3

A Friend of Fernando Poo,

08/01/2009 13:58:32
#2: What we need to achieve by recession is to match the supply of deposits to the lending required by borrowers without recourse to the now defunct securitisation markets.

Trying to buck the markets by starving savers of income will drive them to gold or other countries and will deepen the recession. Raising rates and increasing savings is a better way forward.

Sure, it's hard on those companies and individuals who overborrowed, but why keep them on as deadbeats and zombies with a public subsidy while they lose yet more money? let them go bankrupt and free people and resources to be used in profitable companies and we'll get through this sooner.

Doing it the Brown way and keeping zombie banks and companies going while wasting vast amounts of taxpayer cash, and keeping deadbeat debtors in houses that culd be used by families more able to pay mortgages into the banks (and boy do the banks neeed those) is the way the Japanese did things.

The Japanese buble burst in 1989 and they're still not through the debt-deflationary bust. Ask yourself if you really want us to still be in this mess in 2029...

 

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