Thursday, 19 March 2009

100 percent mortgages are "immoral"

“It is immoral for us to put a loaded gun in the hands of someone who can’t afford to repay.”

Gordon Pell, deputy chief executive of Royal Bank of Scotland, giving evidence to about the 100 percent mortgages to the Parliamentary committee for Scottish affairs.


Anonymous said...

If they actually take action on this, watch the entire property ponzi scheme go down hard. It has only been able to keep going on the over-ramped loans.

AntiCitizenOne said...

If the ratio between house prices and earnings is historically low then 100% mortgages are fine.

Anonymous said...

It's a nasty trap at the moment. First time buyers are being roped in. Those that take 100% mortgages and overstretch will sink when the base rates go up again and they can't afford to repay. The mortgages lenders then take the fall and it happens all over again.