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UK Government to Underwrite New Mortgage Lending
Comments
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It doesn't seem a very efficient way of spending government money, to be honest. If it was only for new-builds I guess that would be an advantage, but surely if the money would be better spent on building new council housing - construction gets a boost and we get desperately needed social housing.
I don't really see why the government would be keen on having people have ever-larger amounts of money tied up in property, which I've always thought isn't very economically efficient.
The original idea (by Thatcher) was that people forced into paying a mortgage tended to work harder and strike less.
The problem came when housing costs became too high, it had the opposite effect as people simply couldn't be bothered to work as they would never be able to afford a home(New Labour).0 -
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Thrugelmir wrote: »The Government would only underwrite the obligation. Not provide direct funding. So actually comes at minimal cash input.
Just like us getting our money back from the propped up banks:rotfl: - as a high contingent risk it would be somewhat imprudent not to make adequate provision for the likely event."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
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.
I agree with your thoughts unfortunately lower commuter costs just isn't going to happen.
Long term commitment to and investment in the rest of the country is needed.
This country is to South East centric."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Typical nonsense on this thread.
A week or so ago, there was a post about a proposal from the EU that it might force the UK to regulate BTL mortgages. All the people who call themselves "bears" said it was a game changer. All the people who call themselves "bulls", immediately said that it would never happen and was irrelevant.
This is just the same, but the other way around.
So, in conclusion, if you think of yourself as a housing bull or bear, I think your time would be better spent setting up a club where you can dress up as your adopted animal, and meet your enemy animals in person. I would pay money to see hamish jump into a bear pit dressed as a friesian, and/or geneer fighting the randy bull from withnail & i dressed as rupert the bear. i'm sure the grizzlies at the zoo will be more than interested in your triumphant declarations of victory upon the proposal of some pipedream policy which will probably never happen.
Just my personal view, of course.0 -
grizzly1911 wrote: »Just like us getting our money back from the propped up banks:rotfl: - as a high contingent risk it would be somewhat imprudent not to make adequate provision for the likely event.
Considerable difference between what is being proposed now, and the lending practices of Northern Rock, HBOS and Bradford and Bingley in their heyday.0 -
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Oh no they aren't actually seriously considering that stupid pension pot deposit idea are they.
great idea isn't it.
the only saving grace is that anyone who has any sort of meaningful pension pot can probably afford a deposit anyway.
wonder how it would work for public sector workers who don't have a pension pot...0 -
Thrugelmir wrote: »Considerable difference between what is being proposed now, and the lending practices of Northern Rock, HBOS and Bradford and Bingley in their heyday.
Not really just depends on how you value the property and the credit score model parameters
Those lending practices were overvaluing the potential in the properties and by allowing over commitment, the ability of borrower to repay over the full cycle.
Agree that repayment only option would reduce the risk to a degree.
I would expect any scheme of this nature to make sure the figures "fitted" the end goal. Over priced/valued new build giving the LTV headroom, for an example, perhaps:think:"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »Not really just depends on how you value the property and the credit score model parameters
In March 2009 after completing a thorough review of HBOS's mortgage book. Lloyds estimated that around 28% of mortgages were outside its own risk tolerance. In its latter days HBOS was driven by market share not banking fundamentals.0
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