Anyone have any idea why we don't have something like
this in the UK, but instead force people to stump up tens of thousands in deposits, which can be a struggle when having to pay someone else's mortgage as well?
I came across it while I was looking at ways to buy a home once we leave the UK in 2012 / 2013.
Quote:
|
Lenders Mortgage Insurance (LMI), also known as Private mortgage insurance (PMI) in the US, is insurance payable to a lender or trustee for a pool of securities that may be required when taking out a mortgage loan. It is insurance to offset losses in the case where a mortgagor is not able to repay the loan and the lender is not able to recover its costs after foreclosure and sale of the mortgaged property. Typical rates are $55/mo. per $100,000 financed, or as high as $1,500/yr. for a typical $200,000 loan.
|
The page discusses the USA but this system is in operation in a number of places, the other big example that comes to mind being Australia. Given how hosed our housing market is it'd be a huge help to people like me who can happily afford a mortgage but who sadly don't have the Bank of Mum and Dad to tap for a deposit.
Your thoughts people? I appreciate that approximately 2/3rds of you will own your own property
