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Debate House Prices


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Permanent ban on 100% mortgages (merged)

bluejake
bluejake Posts: 268 Forumite
in Debate House Prices & the Economy
Labour plan permanent ban on 100% mortgages


Sensible idea, maybe they should also permanently ban gifted 'deposits' since we all pick up the tab when irresponsible behavior in the housing market goes pear shaped. And often the guilty parties walk away from the mess with pockets full of cash.

http://www.dailymail.co.uk/news/article-1151886/Labour-plan-permanent-ban-100-mortgages.html
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Comments

  • Masomnia
    Masomnia Posts: 19,506 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I wonder if the same people who criticized Labour for not interfering enough during the past decade will complain about this too.
    “I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse
  • Cat695
    Cat695 Posts: 3,647 Forumite
    even though I hate labour I have to say this is actually a good idea

    forces people to save for a future.
    If you find yourself in a fair fight, then you have failed to plan properly


    I've only ever been wrong once! and that was when I thought I was wrong but I was right
  • ManAtHome
    ManAtHome Posts: 8,512 Forumite
    Part of the Furniture Combo Breaker
    So 99.99% mortgages are still ok..?
  • Jonbvn
    Jonbvn Posts: 5,562 Forumite
    Part of the Furniture 1,000 Posts
    It seems like a sensible idea. However, it is closing the door after the horse has bolted!
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • Jonbvn
    Jonbvn Posts: 5,562 Forumite
    Part of the Furniture 1,000 Posts
    Dooooooooooooooonut wrote: »
    What you need to understand, and probably will when you stop being a leech on society

    Being a student is hardly being a leech on society? Or perhaps you are Pol Pot?
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • prowla
    prowla Posts: 14,323 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Good old Gordo - we're safe in his hands.
  • lostinrates
    lostinrates Posts: 55,283 Forumite
    I've been Money Tipped!
    Masomnia wrote: »
    I wonder if the same people who criticized Labour for not interfering enough during the past decade will complain about this too.

    I've found lots of reason to critise but I'm thrilled for our society about this one. :)
  • ad9898_3
    ad9898_3 Posts: 3,858 Forumite
    lostinrates wrote: »
    I've found lots of reason to critise but I'm thrilled for our society about this one. :)

    I've heard whispers about mortgage caps (on LTV and multiples), this would be excellent news, but as lostinrates says, a ban on this type of thing would be a good start. A mandatory 10% deposit would be very beneficial on learning people the value of money and saving before they get into the housing market, this has to be a good thing. Banning IO mortgages unless you have a proven investment vehicle (not HPI either:rolleyes:) would be another policy worth considering. All these things would help prevent another housing boom, which inevitably ends in a bust.
  • geri1965_2
    geri1965_2 Posts: 8,736 Forumite
    I think it's a stupid idea. I bought my house using 100% mortgage in 1997, I have never defaulted on any payments, nor do I have any other debts. The cost of the mortgage repayments was less than it would have been if I was renting in the same area.

    As long as credit checks are done and the applicant is not in danger of overstretching themselves, I don't see why they shouldn't be lent 100%.
  • amcluesent
    amcluesent Posts: 9,425 Forumite
    Typical Clown/socialist interference with the market for an easy headline about yet another 'initiative'; just wait to see what blow-back there is from the law of unintended consequences.

    Why don't they do something useful like abolish their hopeless HIPs. Oh wait, that brings in VAT and keeps council droobs in "work"!

    If, by some chance, they really wanted to help the market then reform the nonsensical buying process.
This discussion has been closed.
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