Government unveils cheap mortgage plan for First Time Buyers

I would just go ahead with your plans, note the word "could"

Does sound like a last depserate attempt to rescue an over inflated market.

The best way to "help" FTBers is not to keep the bubble inflated, but to let it burst and reality to return to the market.

But then the voters would never fogrive Labour if they allowed that to happen.

Would you want to share your mortgage with Gordon Brown? And what happens if another party get into power and change the rules?

I think it'll backfire and kill the market stone dead for the next year while people wait to see the terms of this "new deal".

Certainly doesn't encourage me to jump in now if I think I'm going to get a hand out from the govt, does it?

clarkey wrote:

My concern is that sure you help FTBers here, but what about the Second Time Buyers, what is going to happen to them when they can't afford a home that they want to aspire too. The fact of the matter is that property companies can't continue to churn out pokey appartments and expect yeilds to stay as they are.

This is exactly the situation I & my husband are in. I'm not very well up on the economics of the housing market, but I thought prices were determined mostly by supply and demand. We live in a tiny two-up two down modern 'starter' home & we have a baby due in September, whereupon space is going to become very tight...we don't even have a hallway to store the pushchair!
This was all we could afford to buy in our city with two full-time wages coming in..admittedly, the wages would be classed as low, as we earned less than 30,000 between us. Unless we wanted to live in the really rough areas, where we could have had a manky 3-bed.

We would love to (and will really need to) move into something bigger in the near future..nothing flash, just an ordinary 3 bed would do, in an ordinary part of my city...doesn't have to be a 'posh area', just OK. But with the house prices as they are, there is NO WAY we can afford that sort of house, without moving at least 10 miles outside the city.And that's with two wages.

We looked into selling our house last year & discovered we were at least £30,000 short of what we would need to buy a bigger 3-bed house. We can't get a bigger mortgage as the amount we need to borrow is too much...no-one will lend us that much more. The fact that my house has doubled in value since we bought it makes no difference, as ALL the houses have gone up...so we're no better off when it comes to putting money towards another house.

I don't see how helping a FTB to by MY house is helping the situation...I can't afford to move on, and we can't be the only ones in this situation. Surely all it will do is inflate demand for the houses at the bottom of the market & push the prices even higher?

I don't want to move out of the city to be able to afford a decent family home. I can't drive due to a disability & I have elderly parents nearby who rely on my nearness...To be honest, it galls me slightly to think how I struggled to afford my little house, yet now someone may get 50% help to buy it from me, while I will have to move miles away to afford something more suitable,..and get no help at all.

nelly wrote:

Even though i am a potential ftb this is unbeleivable why the hell should tax payers pay for other peoples houses.

They shouldn't of course. But if the govt are going to be stupid enough to go ahead with this, then let's have some "free" money Gordy.

Oh, and the housing market can go rot while I wait for my "cheap" mortgage.

Just another excuse to build a load of new homes destroying the countryside if you ask me. If the bank/building society/government are planning on keeping a share of the property, aren't they assuming a rise in property values? Otherwise I hate to think what they will charge to to increase your share of ownership.