As many of you know I consider the ability to repay a loan or mortgage more important that the value of the house. So if I was lending your money which would be the safest risk? A couple about to start on a second marriage who have a long and successful track record in employment. Additionally they have excellent employer or personal illness / unemployment protection or a first time buyer 6 months out of university whose deposit is provided by Bank of Mum and Dad?
The first example was an actual case and the couple borrowed 110% of the value of the property and surprise surprise they have never missed a payment.
Today the regulator would throw a fit at such a deal but like every other regulator wouldn’t offer a practical alternative.
Bring Back 125% mortgages !!!!!!