We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Debate House Prices


In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

The return of local authority mortgages???

Comments

  • I don't think it's a bad idea provided they won't be doing sub prime mortgages.
  • ad9898_3
    ad9898_3 Posts: 3,858 Forumite
    The problem I see with this, is buying a house is generally a long term thing (25 years). Yet lots of people are jumping on the bandwagon of 'low interest rates'. It's not going to last, rates will be on the up sooner rather than later. If people stretch themselves now, the consequences in the not to distant future will be dire.

    If I was getting a mortgage now, I would be looking at a 10 years fix. What's the best rate for this type of loan ??, I haven't looked but I bet it isn't any better than it was 6,12 or 18 months ago. Probably worse in fact.
  • Kez100
    Kez100 Posts: 2,236 Forumite
    My parents council mortgage was fixed 6% for 25 years but not portable. They were on the council house list but there were just not enough to go around - that was the 1950's. The deposits were normally most peoples problem but my grandmother was able to stump that up to help.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    ad9898 wrote: »

    If I was getting a mortgage now, I would be looking at a 10 years fix. What's the best rate for this type of loan ??, I haven't looked but I bet it isn't any better than it was 6,12 or 18 months ago. Probably worse in fact.

    Sorry a 10 year fix is always going to be 5-7%. They would be if interest rates were 0%.

    They don't get drasticly cheaper because rates go down as they hedge for the future.:confused:
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    Kez100 wrote: »
    My parents council mortgage was fixed 6% for 25 years but not portable. They were on the council house list but there were just not enough to go around - that was the 1950's.

    Thats interesting that seems to blow the argument of historicaly low interest rates over that last 10 years out of the water.
  • robnye
    robnye Posts: 5,411 Forumite
    Part of the Furniture Combo Breaker
    when i started working for my local council back in the early eighties i missed out on taking a local authority mortgage by 3 months.......

    sounds interesting, i suppoes it will depend whether there are any councils who havent had thier fingers burtn by icelandish/irish/us/uk banks going under
    smile --- it makes people wonder what you are up to.... ;) :cool:
  • robin_banks
    robin_banks Posts: 15,778 Forumite
    Part of the Furniture Combo Breaker
    Generally think it's a good idea, you would hope that councils learn from the 'finance experts' in the banks and lend responsibly.
    "An arrogant and self-righteous Guardian reading tvv@t".

    !!!!!! is all that about?
  • b0rker
    b0rker Posts: 479 Forumite
    Are these council mortgages only offered to those who already qualify for a council house/those already in council houses?
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.4K Banking & Borrowing
  • 254.4K Reduce Debt & Boost Income
  • 455.4K Spending & Discounts
  • 247.3K Work, Benefits & Business
  • 604K Mortgages, Homes & Bills
  • 178.4K Life & Family
  • 261.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.