UK: Barclays Bank Starts 100% Mortgages

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SteveMT
UK: Barclays Bank Starts 100% Mortgages

http://www.zerohedge.com/news/2016-05-04/uk-housing-bubble-bursts-barclays-unleashes-100-ltv-mortgages-again

As UK Housing Bubble Bursts, Barclays Unleashes 100% LTV Mortgages Again

 

Just a month after the UK's luxury housing bubble burst, it appears the nice friendly bankers at Barclays are looking for some scapegoats to flip their condos to.

In London, as Bloomberg reporteddemand has slumped so badly that developers are offering discounts of up to 20% for their newly constructed homes. And just as the case was in Manhattan, it’s a result of the UK putting in a speed bump. The UK recently increased taxes on those deemed to be purchasing a second home, specifically designed to slow the pace of overseas investment. 

According to Bloomberg, the U.K. government’s plan to increase sales taxes on second homes in Britain will also apply to people who live abroad.

From April, buyers of second homes and buy-to-let properties in the U.K. will be subject to stamp-duty sales tax that’s 3 percentage points higher than those who are buying a home to live in, U.K. Chancellor of the Exchequer George Osborne announced in November. In deciding whether an individual is purchasing an additional home, the government will also consider assets outside the U.K., according to a consultation document published on Monday.

 

“This means that if someone is purchasing their first or only property in England, Wales or Northern Ireland, they may pay the higher rates if they own property outside these areas,” the document shows.

 

Demand from overseas buyers has contributed to a jump in London house prices, and off-plan sales abroad helped developers finance projects including Battersea Power Station. House prices in the city rose 7.7 percent in the year through October, according to the Office for National Statistics.

The takeaway then is that the housing recovery has been driven primarily by a steady flow of foreign investment, and not necessarily the underlying economic fundamentals improving...

And so bankers are looking to kep the ponzi dream alive by any means possible.

In what appears like a desperate act of rearranging deck chairs on the titanic (or dancing while the music is playing like in 2007/9), The Daily Mail reportsBarclays has brought back the 100 per cent mortgage - the first major bank to do so since the last financial crisis...

More at: http://www.zerohedge.com/news/2016-05-04/uk-housing-bubble-bursts-barclays-unleashes-100-ltv-mortgages-again

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