UK Government to Underwrite New Mortgage Lending

the_flying_pig

HAMISH_MCTAVISH wrote: »

For those who can't afford deposits.....

http://www.bbc.co.uk/news/uk-politics-15766391
You can't have a sustainable recovery in the wider economy without a sustainable recovery in the housing market...

:beer:

As I mentioned yesterday the US has just recorded record GDP figures having (post the idiocy of fannie mae etc) let house prices find their natural (a long way below peak) level. What is it about the UK that (in your warped mind) means we need HPI for growth?

DaddyBear

the_flying_pig wrote: »

As I mentioned yesterday the US has just recorded record GDP figures having (post the idiocy of fannie mae etc) let house prices find their natural (a long way below peak) level. What is it about the UK that (in your warped mind) means we need HPI for growth?

VI + blinkers.

IronWolf

I'll believe it when I see it. Until then just looks like another journalist who is scraping the barrel for things to "blog"

doire_2

Just look at the comments from the usual deluded bulls. :rotfl:

"Game over for the bulls". How many times has that been now?

The frothing is laughable even before this scheme is even set in stone. No-one even knows if its for all mortages or just FTB? New builds?

Graham_Devon

HAMISH_MCTAVISH wrote: »

For those who can't afford deposits.....

http://www.bbc.co.uk/news/uk-politics-15766391

If this scheme happens in any meaningful way, it's absolutely game over for the bears.
:beer:

You really think so?

It's the government doing high risk lending.

Sure, it may extend the problems. But it certainly won't fix any, and will only make all the problems worse.

I'd find it difficult to swallow laying off nurses, police and admin staff in the public sector, only to carry out high risk lending to people who can't afford housing. And that's what would be happening. Shut down the local learning disabilities centre and you may be able to get 10 families into a house they cannot afford.

Bloody brilliant. That's not problematic at all.

We've now got a long list of government intervention in the housing market, yet the housing market still declines. This isn't going to propell it back into boom times. Get as excited as you like! We've seen the same excitement before with councils offering mortgages, home2own, homebuy, helping hand, etc etc etc.

By the way....just how many lives do the bears have? It's game over it seems nearly every couple of months.

DervProf

HAMISH_MCTAVISH wrote: »

You can't have a sustainable recovery in the wider economy without a sustainable recovery in the housing market

While I think that the UK economy is over reliant upon it's property market, I don't think that an economic recovery is waiting for a recovery in the property market. I think the property market is very much reliant upon a healthy wider economy. Although to listen to some people here, it seems they want the wider economy to be ever more dependent on property. Self interest and greed seem to take over from rational thought.

paulmapp8306

What the government SHOULD be doing is building themselves - using cheap flatpacked housing that takes days to put up. This would solve the social housing problems and save a small fortune in private rent subsidisation.

Dont get me wrong - I want to buy, and will have the deposit shortyl - but I do still think housing prices are too high. Mainly due to not enough houses for everyone, so high demand. Unfortunately most of that demand is from people that cant afford to buy or cant get a mortgage.

House prices falling are a non issue in my eyes, UNLESS you bought as an investmanet.

If you are paying for a home to live in, it doesnt matter what its worth once you have agreed a price. You have your home at the price you were prepared to pay, and unless your going to sell its actual value doesnt matter.

If you selling to buy a bigger house - again it has limited impact. There is the neg equity think which can make it harder - but ultimately while your existing house is worth less - so is the house you want to move up to.

The only people really stuffed are those who want to downsize really. I have never got the fuss over "Oh my god - house prices are fgalling and my house isnt worth what I paid", unless as I said it was as an investment.

While I dont think house prices WILL fall much more - I also dont think there going up much in the near future despite this latest idea.

The average house price SHOULD be worth perhaps 5x the average income (which before the 80s they were), so around £130k. In some parts of the country they are - in others not. To get there, prices need to fall another 20-30% really. wont happen though mainly because there is not enough housing to go round.

drc

Why doesn't the government just stop propping up the UK property market and let prices fall to their natural level? Surely that's cheaper and more sensible than keeping the housing corpse on perpetual life support to keep a few rich people from losing their money?

kabayiri

DervProf wrote: »

While I think that the UK economy is over reliant upon it's property market, I don't think that an economic recovery is waiting for a recovery in the property market. I think the property market is very much reliant upon a healthy wider economy. Although to listen to some people here, it seems they want the wider economy to be ever more dependent on property. Self interest and greed seem to take over from rational thought.

It's mostly people in the South East who have the problem. Organisations like the BBC are looking to relocate people to lower their cost base. This would balance out housing demand more evenly.

Supporting telecommuting and lowering rail commuting costs will also help people to live in cheaper locations.

Building more houses in London is like putting out the fire with gasoline. It will just stoke up the prices even more, hitting buyers and renters alike.

HAMISH_MCTAVISH

The Chancellor is expected to announce plans to underwrite mortgages, which would make it less risky for banks to lend money to people struggling to raise enough for the necessary deposit.

Ministers are understood to be studying plans drawn up by the CBI, Britain’s biggest business lobbying group.

The CBI has proposed a mortgage guarantee scheme to enable first-time buyers to take out lower deposit mortgages, and new rules allowing them to use money held in pension pots to boost deposits.

http://www.telegraph.co.uk/news/politics/georgeosborne/8895301/First-time-buyers-to-get-cheaper-mortgages-George-Osborne-to-say-in-autumn-statement.html