2007-09-18 09:13:18 · 3 answers · asked by \ 5 in Business & Finance ➔ Renting & Real Estate
only of the goverment say they're safe lol!
2007-09-18 09:17:40 · answer #1 · answered by ωєℓѕн 4 · 1⤊ 0⤋
Yes and no ..
NR was notorious for offering Mortgages above 100% of the property value .. it is unlikely that these will be available from anyone else ...
Also NR borrowed a lot of 'short term' money that they then lent out as 'long term' Mortgages from 'the markets' (eg other Banks) ... this works just fine when Interest rates are going down (they can 'roll over' the short term loan at a loweer rate whilst continuing to charge the Mortgage at the higher rate) ...
and meant they could lend out massive ammounts of Mortgages at 'lowish' rates ..
All this means that Mortgages are unlikley to be as cheap nor as easy to get i.e Banks will be more cautious befor lending .
HOWEVER, NR Mortgage holders don't default any more than others so overall the effect is likley to be minimal ..
To sum up ...no more 110% Mortgages, an extra 0.1% on the Interest and a longer application process ...
2007-09-19 02:44:28 · answer #2 · answered by Steve B 7 · 1⤊ 0⤋
Everything to do with money affects other money, mortgages loans savings. They are all linked you can`t have one with out the other.
2007-09-18 16:20:13 · answer #3 · answered by Social Science Lady 7 · 0⤊ 1⤋