| Rumours of Tories bringing in 1% deposit mortgages 18:27 - Jan 21 with 2776 views | geg1992 |
Just when I thought I couldn't despise this Government any more.
Clearly only to try to entice the younger voters as they're desperate.
Literally just opened a lifetime ISA, so by the time I'm able to withdraw, no doubt the house prices will have increased drastically if this came in.
Although it looks good as allows more people to get onto the housing ladder, surely it only results in houses becoming more expensive any pricing out those who it's supposed to be targeting?
Or am I completely missing something? I know it's probably not as simple as that. |  |
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| Rumours of Tories bringing in 1% deposit mortgages on 18:30 - Jan 21 with 2732 views | Clutch |
How is the government going to make providers do this? |  | | |
| Rumours of Tories bringing in 1% deposit mortgages on 18:52 - Jan 21 with 2578 views | BlueBadger |
Surely they must have *some* mates in the construction industry that could stand to make a few quid from building more social housing? |  |
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| Rumours of Tories bringing in 1% deposit mortgages on 19:23 - Jan 21 with 2460 views | factual_blue |
I suspect the main beneficiaries will be those buying to let. |  |
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| Rumours of Tories bringing in 1% deposit mortgages on 19:44 - Jan 21 with 2371 views | pennblue |
They would need to back the loans to a certain level, but as house prices in general will always go up it is not that risky and will be very popular policy with the poor and the rich |  |
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| Rumours of Tories bringing in 1% deposit mortgages on 19:50 - Jan 21 with 2331 views | Herbivore |
| Rumours of Tories bringing in 1% deposit mortgages on 19:44 - Jan 21 by pennblue |
They would need to back the loans to a certain level, but as house prices in general will always go up it is not that risky and will be very popular policy with the poor and the rich |
They aren't going up currently and forecasts are suggesting they won't really go up for a couple of years. Interest rates aren't historically high but they are very high compared to the last decade, people can't afford a mortgage when houses cost as much as they do. |  |
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| Rumours of Tories bringing in 1% deposit mortgages on 20:38 - Jan 21 with 2165 views | Swansea_Blue |
| Rumours of Tories bringing in 1% deposit mortgages on 19:23 - Jan 21 by factual_blue |
I suspect the main beneficiaries will be those buying to let. |
I doubt you’d buy to let on such a low deposit. Doable, but the margins would be very slim given mortgage rates/repayments versus expected rent return.
(He says with conviction despite knowing sod all about it  ) |  |
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| Rumours of Tories bringing in 1% deposit mortgages on 20:38 - Jan 21 with 2160 views | J2BLUE |
It's laughable that they are basically openly saying we're going to try and bribe people to stay in power.
Our political system is an absolute joke. |  |
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| Rumours of Tories bringing in 1% deposit mortgages on 20:50 - Jan 21 with 2093 views | Help |
The governments only policy is to keep the housing market going. Look at the housing policy introduced during Covid to keep the country moving. That created an artificial housing boom. They have no other policies, than the housing market. |  | | |
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| Rumours of Tories bringing in 1% deposit mortgages on 21:59 - Jan 21 with 1897 views | EatonBlue |
| Rumours of Tories bringing in 1% deposit mortgages on 20:38 - Jan 21 by Swansea_Blue |
I doubt you’d buy to let on such a low deposit. Doable, but the margins would be very slim given mortgage rates/repayments versus expected rent return.
(He says with conviction despite knowing sod all about it ) |
Yes, the minimum BTL deposit is usually 25%. |  | | |
| Rumours of Tories bringing in 1% deposit mortgages on 22:11 - Jan 21 with 1851 views | factual_blue |
| Rumours of Tories bringing in 1% deposit mortgages on 20:38 - Jan 21 by Swansea_Blue |
I doubt you’d buy to let on such a low deposit. Doable, but the margins would be very slim given mortgage rates/repayments versus expected rent return.
(He says with conviction despite knowing sod all about it ) |
For some strange reason, I thought the story was about 1% rate mortgages.
Boo.
Clegg Out. | |
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| Rumours of Tories bringing in 1% deposit mortgages on 22:32 - Jan 21 with 1782 views | redrickstuhaart |
| Rumours of Tories bringing in 1% deposit mortgages on 19:44 - Jan 21 by pennblue |
They would need to back the loans to a certain level, but as house prices in general will always go up it is not that risky and will be very popular policy with the poor and the rich |
Simply not true. It was the glut of low or non deposit mortgages (often fraudulent but with which lenders turned a profit driven blind eye) that was at the heart of the financial crash. | | | |
| Rumours of Tories bringing in 1% deposit mortgages on 07:51 - Jan 22 with 1452 views | ArnoldMoorhen |
The only way they can do this and actually make a difference in the market is if they change the affordability rules that introduced a stress test to ensure that customers could afford the rate they revert to after the end of any initial deals PLUS 3%.
Those rules were introduced to ensure that there could be no repeat of the large scale crash in 2008.
Taking those away AND introducing an ultra-low deposit regime (removing a defence against negative equity) would create a super-heated market, leading to an increase in demand, and consequent rise in house prices.
So, ultimately, it would only benefit the capital rich, and introduce a much higher risk of repossessions later on. It would be deeply irresponsible. Almost like a Government had given up all hope of re-election and wanted to create a time-bomb which would blow up on the next Government.
So, it's a good job that there are still affordability rules.
Oh...
https://www.theguardian.com/money/2022/jun/25/uk-mortgage-stress-test-first-time
Kwartengian levels of recklessness. | | | |
| Rumours of Tories bringing in 1% deposit mortgages on 08:40 - Jan 22 with 1326 views | DanTheMan |
| Rumours of Tories bringing in 1% deposit mortgages on 07:51 - Jan 22 by ArnoldMoorhen |
The only way they can do this and actually make a difference in the market is if they change the affordability rules that introduced a stress test to ensure that customers could afford the rate they revert to after the end of any initial deals PLUS 3%.
Those rules were introduced to ensure that there could be no repeat of the large scale crash in 2008.
Taking those away AND introducing an ultra-low deposit regime (removing a defence against negative equity) would create a super-heated market, leading to an increase in demand, and consequent rise in house prices.
So, ultimately, it would only benefit the capital rich, and introduce a much higher risk of repossessions later on. It would be deeply irresponsible. Almost like a Government had given up all hope of re-election and wanted to create a time-bomb which would blow up on the next Government.
So, it's a good job that there are still affordability rules.
Oh...
https://www.theguardian.com/money/2022/jun/25/uk-mortgage-stress-test-first-time
Kwartengian levels of recklessness. |
"it would only benefit the capital rich".
This is the only thing the housing market is good for right now. We're tinkering with nonsense like this to keep the market inflated instead of introducing more supply to try and get house prices down.
How will a first-time buyer afford a mortgage with a tiny deposit and now the higher interest rates? This may have helped when we had the very low interest rates where the deposit was the barrier but now this will only solve half the equation and will just push up house prices further so the monthly payments are worse.
I assume they just want to push people into ever longer mortgage agreements. |  |
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| Rumours of Tories bringing in 1% deposit mortgages on 10:43 - Jan 22 with 1143 views | ChampionsofInnsbruck |
They aren’t going to win. |  | | |
| Rumours of Tories bringing in 1% deposit mortgages on 11:56 - Jan 22 with 996 views | baxterbasics |
Balls to any housing policy that doesn't involve building 100,000s of extra homes. Annually. Which also means steamrollering through our clunky planning system.
Tories wont do it because of all the NIMBYs, Labour wont because "environment" |  |
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| Rumours of Tories bringing in 1% deposit mortgages on 12:30 - Jan 22 with 943 views | SuperKieranMcKenna |
| Rumours of Tories bringing in 1% deposit mortgages on 11:56 - Jan 22 by baxterbasics |
Balls to any housing policy that doesn't involve building 100,000s of extra homes. Annually. Which also means steamrollering through our clunky planning system.
Tories wont do it because of all the NIMBYs, Labour wont because "environment" |
But steamrolling out clunky planning system is already creating problems. We are now building over 10,000 homes a year on flood plains. Whether this is due to lack of available land, or irresponsible planning permission. Buyers sometimes don’t realise until they’ve completed only to find they can’t get insured… | | | |
| Rumours of Tories bringing in 1% deposit mortgages on 12:36 - Jan 22 with 924 views | backwaywhen |
Point scoring is what politics is all about surely, do you seriously think any other party would not go down the enticement road …….wake up man . | | | |
| Rumours of Tories bringing in 1% deposit mortgages on 17:57 - Jan 22 with 707 views | factual_blue |
| Rumours of Tories bringing in 1% deposit mortgages on 12:36 - Jan 22 by backwaywhen |
Point scoring is what politics is all about surely, do you seriously think any other party would not go down the enticement road …….wake up man . |
Less likely with those parties that don't get massive donations from the construction industry. | |
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| Rumours of Tories bringing in 1% deposit mortgages on 18:06 - Jan 22 with 682 views | Swansea_Blue |
| Rumours of Tories bringing in 1% deposit mortgages on 11:56 - Jan 22 by baxterbasics |
Balls to any housing policy that doesn't involve building 100,000s of extra homes. Annually. Which also means steamrollering through our clunky planning system.
Tories wont do it because of all the NIMBYs, Labour wont because "environment" |
I’d have thought the desperate need for housing is a perfect solution to our dying town centres. Convenient places to live, already the best connected areas with public transport. Seems a no brainer to me. If done well it gets rid of any NIMBY and environmental concerns straight away. It’d need steering though and not left to market forces and the whim of developers, so probably won’t happen on the scale it could. | |
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