100% mortgages are back

100% mortgages are back with a twist in northern ireland.

they are calling them momentum mortgages.

the banks don't seem to have learned they're lesson.

Momentum Mortgage A First for First Time Buyers… Want to buy your first home but haven't got a deposit? Well here's some great news: you don't need one! New from Ulster Bank, a Momentum Mortgage makes it easier to get onto the property ladder. * Up to 95% mortgages are available * 5% deposit paid by the developer - and you'll only pay this back if your home's value grows by 5% or more after five years * Protection against house price falls - we'll reduce your mortgage by up to 10% of the original property value

www.ulsterbank.co.uk... click into the mortgage section, cant get full link to work

[edit on 30-10-2008 by satanUK]

[edit on 30-10-2008 by satanUK]

Ireland...get rid of this crap fast. How stupid do they think people can be. The entire world is in crisis and partly because of just this kind of crapola mortgage lending. Five years was about how long it took to burst the housing market in the US. Seven years is about how long it took the credit industry to implode on itself.

Dont buy into this bogusness, lest you be the next head on the chopping block.

i got my house 3 years ago with a 100% mortgage, im dreading what its going to be like in january 2010 when my deal runs out

Hold up how does this sound like such a bad deal?
They are offering property value protection.
And the developer is offering to pay the 5% deposit and you only have to repay him if the value increases.
This sounds like a smart little plan to boost construction and home ownership.
The only thing is with this you would have to be very careful and do your math.
Make sure what you are paying isn't over inflated.
Because the 5% deposit and value protection might not matter if you pay to much for it in the first place.
See they wouldn't be doing this though if they thought the value would drop massively.
Because if they foreclosed they wouldn't even get back what the principal lent to the owner, paid to the developer to buy the home.
Unless they are somehow in on this with the developer?.

a massive developer just went bust in northern ireland