Government have today offered everyone a chance to buy!

blue_monkey_2

Surely people should only be buying when they can afford to buy? When they can afford the repayments? Not being sucked in by 'Goverment Schemes' that are offering free loans.

I am right in assuming that you would still have to meet a repayment criteria am I? And most houses are selling for 8 or 9 times the AVERAGE' salary. Would they give me a 'free loan' that is 8 times my annual salary?

The only people that this is going to work for is people who do already earn lots of money, couples who are selling 2 small houses for one bigger house and those that are desperate - and they already have the option of Shared Owndership. Only now they'll wait to see if they can get 5 years interest free on the 'loan' for a place they could already afford. But then, as has been said, what happens after the 5 years when the fee has to be repaid but the buyer has had to pay up to their necks for the loan repayments they have not been able to afford to save the fee.

Seems like a no brainer to me. Houses are affordable at 3, maybe 4, times your salary - any more than this then you cannot afford to buy a house. Once people stop buying things they realistically cannot afford then prices will level out.

happywarmgun

This announcement has depressed me. It would not surprise me if the FTB who is showing interest in my flat (and has mortgage sorted) now decides to 'wait and see' exactly what this deal involves and what they can get from a New Build.

Thanks Darling.

slipthru

lynzpower wrote: »

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



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

What i want to know is how they would make up the shortfall?

lostinrates

among th things that made m angry was Hazel Blears saying this was support for 'dcent families'. What a strange justification??? Does that mean there is some sort of filtering to exclude ASBO holders or peopl with speeding convictions or non-Labour voters or what?

Also, her protestations that stamp duty reforms wr nothing to do with her or these proposals etc tc......what could b more relevant to housing and FTBs that stamp duty?

blue_monkey_2

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.

If you are a FTB and have a deposit saved and you want to buy now, what is stopping you from buying now? If you cannot buy because the bank will not lend you the money then you cannot afford it because you don't have the money!!

A recovery? A chance for people to own their own home? People still cannot afford to buy houses that are 8 times their salary can they? Whats more the banks won't lend people 8 times their salary so while prices are this high then they cannot afford to own their own homes.

Maybe if the banks weren't so keen to lend people money they could not afford then we would not be in this mess and people would always have had the chance to own their own homes.

blue_monkey_2

Darling has an 'announcement' at 9am apparently.....

Jonbvn

blue_monkey wrote: »

The only people that this is going to work for is people who do already earn lots of money, couples who are selling 2 small houses for one bigger house

What are you talking about? The scheme is only open to FTB's on joint incomes of less than 60k???

Pobby

Well this is interesting isn`t it! They teased us with gimmicky mortgage deals when the market was going up to suck you in, now more gimmicks on the way down. Perhaps had we not had all this, what amounts to, tinkering with debt we may have avoided this stupid situation we are now in.

Ian_Griffiths_Halifax

blue_monkey wrote: »

I am right in assuming that you would still have to meet a repayment criteria am I? And most houses are selling for 8 or 9 times the AVERAGE' salary. Would they give me a 'free loan' that is 8 times my annual salary?

A common misconception. Average house prices may be, I think, 6/7 times the average salary, but not all are bought on anywhere near 100% mortgages due to people who have equity in their house etc. This obviously takes into account £1/2/3 mil properties and not your usual FTB price.

blue_monkey_2

Jonbvn wrote: »

What are you talking about? The scheme is only open to FTB's on joint incomes of less than 60k???

Surely you have to be earning money to repay the loan? No-one can afford to buy, that is why they are not buying, because they cannot get a loan to pay for the house.

So if you cannot afford it now, how can you afford it just because it is interest free for 5 years? The interest will have to start to be repaid sooner or later. Plus the fee. In this area a one bed starter property is £150k+ so yes, for a couple, joint income would have to be 50k, wouldn't it?