For a Sunday afternoon thought provoking post I’d thought I’d post about the current mortgage crisis in the UK, and what mortgage companies are doing about it. I hope none of this info has changed, because this post was written last Tuesday and set to go live because I’m on holiday this week.
Yeah, I’m probably pissed right now.
Anyway, back to my point. I recently looked at getting a mortgage through C&G for a property in Manchester, and a few months ago was told that I could get a 90% mortgage, which would mean I’d need a £9,000 or so deposit. No problems.
However, C&G, despite offering the 90% mortgage package on their site, aren’t actually offering 90% mortgages at the moment. Instead the best they’ll offer is a 75% mortgage, which means I’d need around £22,000 for a deposit, which I don’t have at the moment. Who does?
But… Lloyds TSB, who are C&G for the sake of arguing, will offer me up to £25,000 as a personal loan, which I could use as a deposit! So, they won’t offer me the £77,000 as a mortgage, secured on a property, but they will offer me the amount if it’s split up, and £25,000 of it is unsecured.
What the heck’s going on there?
No wonder there are people being repossessed left, right and centre. Lenders are giving the people the money, but in two lumps, making repayments higher, interest rates higher, and offering them unsecured.
Sort it out C&G and Lloyds TSB.