Government have today offered everyone a chance to buy!

rumbaba

The government are offering an excellent deal to first time buyers

http://news.bbc.co.uk/1/hi/uk_politics/7592852.stm

Let's hope everybody will now get the chance to have a home of their own, and the recovery is finally here.

turbulentfurball

_From_the_Article wrote:

The government is to promise first-time buyers in England "free" loans of up to 30% of their home's value, in an effort to reinvigorate the housing market.

So it's not quite everyone. That's devolution for you!

Also, it's not necessarily a good thing. If you take up the scheme, and prices continue to drop at the current rate, then you'll end up in negative equity territory soon, and your LTV won't be that good since you still technically owe someone that money. It's a loan; not free money.

lynzpower

Oh great, this will really help all the householders desperate to sell to get out of neg equity

Households earning less than £60,000 will be offered loans free of charge for five years on new properties, co-funded by the state and developers.

:wall:

What a joke.

lynzpower

Heres what our "oppositiion is coming back with"

http://www.telegraph.co.uk/news/newstopics/politics/conservative/2663564/Tories-plan-to-raise-inheritance-tax.html

Tories plan to raise inheritance tax threshold to £2 million

Families will be able to inherit £2 million tax free from their parents under Tory plans to raise the Inheritance Tax threshold, the Daily Telegraph can disclose.

What a great start to the day eh?!!?

lynzpower

Lovely to see some great joined up thinking from Mr Brown

Property developers offering cash and other perks in an attempt to attract homebuyers will have to give mortgage lenders full details of their “give-away” deals as part of an antifraud initiative launched yesterday.
It follows a sharp increase in organised mortgage fraud over the past year as house prices have slid by an estimated 10.5 per cent and the credit crunch has dried up traditional sources of credit. One of the tactics used by fraudsters is to overinflate the value of the property that they are buying to obtain more finance than a home is worth. Developers’ incentives can distort the value of a property.
Bradford & Bingley, the struggling mortgage bank, admitted last week that it had taken an £18 million charge to cover losses as a result of organised mortgage frauds uncovered during the first half of the year.
The antifraud initiative was first reported by The Times and is backed by the Council of Mortgage Lenders (CML) and the Royal Institution of Chartered Surveyors (RICS).

http://www.timesonline.co.uk/tol/money/property_and_mortgages/article4656188.ece

Davesnave

rumbaba wrote: »

The government are offering an excellent deal to first time buyers

http://news.bbc.co.uk/1/hi/uk_politics/7592852.stm

Let's hope everybody will now get the chance to have a home of their own, and the recovery is finally here.

Yes, an excellent chance to get into a higher long-term debt than they might have had if prices had been allowed to find their own level, assuming that these measures have an effect, that is. Thanks, Gordon.

BTW, 'everybody' has never had the chance to own their own home, nor will they. The 'recovery' would be a bit premature too, seeing as we've barely started the recession!

Sorry to be so negative at this time of the morning. I'm sure I will cheer up once I've had a bacon sandwich & the Stock Market has rallied.......

kerryi27

when would the first time buyer deal come into force, would it be anytime soon.

haras_nosirrah

This is an absolute disaster.

1) this announcement is going to put off first time buyers in the short term while the government make a decision.

2) the governmment is encouraging first time buyers to buy houses that aren't built yet when there are so many on the market that people are desperate to sell. This is going to stagnate the exisiting property market further as first time buyers don't buy existing flats in favour of new builds.

3) the government is going to want their money back in 5 years - if house prices haven't recovered enough then people will get reposessed for it - after all 30% of an existing property new build flat is around 50k in this area - first time buyers will buy higher because they can afford the smaller mortgage without thinking about 5 years time when they have to pay it back

4) Most new builds are over priced and the size of shoe boxes anyway - first time buyers will be paying a premium they just won't know it

The only people to benefit here are the house builders who must be rubbing their hands with glee at this announcement. Why not 30% loan on any market property for first time buyers?- that would get things moving again

dudleyboy

Thanks for the offer, Gordo, but still not interested.

Once the five-year "free" period is up, homebuyers will be asked to pay a fee, the Department for Communities and Local Government said - although no more detail of this was provided.

So house prices are set to fall by at least 30% by the end of next year, the government wants us to take out a 5 year interest free loan for... erm... 30% of the current market value... and when the 5 years are up we'd have to pay an as yet undisclosed fee on this massive loan. Doesn't sound very tempting to me.

A spokesman added that "hundreds of millions of pounds" had been put aside in the last Budget for such a move.

And I thought everything was hunky dory at the last budget (at least, that's what the gov would have us believe).

As usual, this has nothing to do with helping FTB-ers and everything to do with helping this failing government and desperate home builders. If GB wanted to help he should have stopped the housing bubble from getting out of control all those years ago. I'm certainly not going to assist him now by buying into this gimmick.

lynzpower

A spokesman added that "hundreds of millions of pounds" had been put aside in the last Budget for such a move.

good point dudleyboy

I think this is a total LIE. I dont think any money was set aside for this purpose.

*wonders to self whether one might be able to get at this info via freedom of information act request*

steadysaver

Great news for those wanting to buy a new build shoe box, what about people who want an older property with room to swing that preverbial cat.

There is also the issue of build quality. There is a new build project in my town and it looks like the builder took the bricks and mortar, put it in a catapult and fired it in the general direction of where they wanted the house to be built.

Another short sighted idea by Brown. Just let the property drop to prices people can afford. If Government have to give upto 30% of the value out in a "free" loan surely that must ring alarm bells that property is over priced.

Hes more Sub Prime, than Prime Minister

I say its time we rose up and started a revolution.... its what this country needs, whos with me MSE'rs.