Comments on: Return of the 100% mortgage http://www.thisisguernsey.com/2009/11/21/return-of-the-100-mortgage/ Island News, Sport, Community & Lifestyle Sun, 21 Mar 2010 09:15:15 +0000 http://wordpress.org/?v=2.8.4 hourly 1 By: Paul Le Page http://www.thisisguernsey.com/2009/11/21/return-of-the-100-mortgage/#comment-56796 Paul Le Page Mon, 23 Nov 2009 14:41:36 +0000 http://www.thisisguernsey.com/?p=39627#comment-56796 Steve - it is still technically a 100% mortgage as the lender still provides 100% of the capital; the only difference is that 15% of the loan is secured against another family member. I do get your point though and would suggest there are better ways to fund a house purchase than this. For example, why get your parents to stash 15% of their savings at Skipton as security, when they could either give the money to their children or lend it at a rate of interest that is: - lower than the mortgage thus saving the children money - higher than Skipton are paying out, this making it an investment - albeit higher risk. Steve – it is still technically a 100% mortgage as the lender still provides 100% of the capital; the only difference is that 15% of the loan is secured against another family member.

I do get your point though and would suggest there are better ways to fund a house purchase than this. For example, why get your parents to stash 15% of their savings at Skipton as security, when they could either give the money to their children or lend it at a rate of interest that is:

- lower than the mortgage thus saving the children money

- higher than Skipton are paying out, this making it an investment – albeit higher risk.

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]]> By: Vee http://www.thisisguernsey.com/2009/11/21/return-of-the-100-mortgage/#comment-56786 Vee Mon, 23 Nov 2009 13:22:34 +0000 http://www.thisisguernsey.com/?p=39627#comment-56786 Skipton states: Its Next Generation Mortgage does, however, require a family member to act as guarantor for a maximum of 15% of the purchase price. Who in their right mind would go as guarantor and put a bond on their house for someone else, i certianly wouldnt!!! I think first time buyers(i was one last year thank you) should just face it, life has changed and if you have to put up 10% then save save save!!! Skipton states: Its Next Generation Mortgage does, however, require a family member to act as guarantor for a maximum of 15% of the purchase price.

Who in their right mind would go as guarantor and put a bond on their house for someone else, i certianly wouldnt!!!

I think first time buyers(i was one last year thank you) should just face it, life has changed and if you have to put up 10% then save save save!!!

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]]> By: Steve Le Cheminant http://www.thisisguernsey.com/2009/11/21/return-of-the-100-mortgage/#comment-56749 Steve Le Cheminant Sun, 22 Nov 2009 19:58:07 +0000 http://www.thisisguernsey.com/?p=39627#comment-56749 So that would be a 85% mortgage then. So that would be a 85% mortgage then.

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