At last! Thank you Tories

CLAPTON

new build houses are over priced because of the rediculous 'affordable housing quota' and because new builds (like cars) anyway lose 20% the day you move in.

now if you are buying for the long term (i.e. 3/4 bed large house and staying for 10 years)) that's probably Ok but if we are talking about first time buyers (maybe looking to upgrade in 2/3 years) then the scheme virtually guarentees they will be in negative equity when they sell.

sad but true

Graham_Devon

julieq wrote: »

Let's get this clear - 120% mortgages do not create misery and are being repaid. Total urban myth that they're causing problems - they're nothing more than a secured loan and an unsecured loan at a lowish rate. Good for lender and borrower.

Lending on UK mortgages didn't cause anything more than marginal issues. Anyone who says they do is ignoring the evidence.

Go and say that on the BBC news article on this story. See how many agree with your bizzare thoughts.

My post is still leading, by quite some margin now....and I'm still proud

Hoopie1

julieq wrote: »

Governments don't specifically work to keep house prices up. There's no reason to and they couldn't anyway except by constraining demand, markets are far more powerful than governments. What they do is to attempt to keep people in jobs by stimulating general growth, which currently is needing now interest rates. That will change over time.

Apart from preventing a lot of property owners being unhappy due to being in negative equity and stopping the banks taking more write-downs on loans, which the government would have to (in part) fund?

doire_2

100,000 FTB in england and only allowed to buy new builds? Who is going to buy existing houses if FTB cant?

Caveat_Mortgagor

Graham_Devon wrote: »

Go and say that on the BBC news article on this story. See how many agree with your bizzare thoughts.

My post is still leading, by quite some margin now....and I'm still proud

I think JulieQ may has a point about the 120% mortgages being repaid. When the 'good bank' created from splitting up NR was sold off last week, the good bank was making a loss and yet the bad bank has been making profits.

But you are right Graham, those insane LTV mortgages help nobody.

Percy1983

I can't see this making a huge difference but in some ways can see the positive.

Its still asking for a 5% deposit so its won't result in a free for all like when mortgages where given out like sweets.

It may actually get the developers building faster which is certainly a good thing.

With that I wouldn't have touch this deal really, 'new house' premiums on prices are too much for me.

Graham_Devon

Caveat_Mortgagor wrote: »

I think JulieQ may has a point about the 120% mortgages being repaid. When the 'good bank' created from splitting up NR was sold off last week, the good bank was making a loss and yet the bad bank has been making profits.

But you are right Graham, those insane LTV mortgages help nobody.

And the only reason it's making a profit is because we bailed it out. It wouldn't exist to make a profit otherwise. Something Julie always completely ignores.

shortchanged_2

Caveat_Mortgagor wrote: »

I think JulieQ may has a point about the 120% mortgages being repaid. When the 'good bank' created from splitting up NR was sold off last week, the good bank was making a loss and yet the bad bank has been making profits.

But you are right Graham, those insane LTV mortgages help nobody.

The thing is, yes maybe most of the loans are being paid back, duly assisted by low interest rates but how many times have you read threads on here by people who are now trapped in these homes because they are in negative equity. That cannot be a good thing.

Julieq is nothing but a debt junkie promoter who claims to have such a fantastic economic brain and yet she cannot see the fundamental problems with 120% mortgages.

Going4TheDream

shortchanged wrote: »

The thing is, yes maybe most of the loans are being paid back, duly assisted by low interest rates but how many times have you read threads on here by people who are now trapped in these homes because they are in negative equity. That cannot be a good thing.

Julieq is nothing but a debt junkie promoter who claims to have such a fantastic economic brain and yet she cannot see the fundamental problems with 120% mortgages.

They were in negative equity the day they moved in if they took one of these mortgages out?

Negative equity is only a problem if you wish to sell, surely they considered all aspects before agreeing to sign on the dotted line and know what they were signing up for?

shortchanged_2

Going4TheDream wrote: »

They were in negative equity the day they moved in if they took one of these mortgages out?

Negative equity is only a problem if you wish to sell, surely they considered all aspects before agreeing to sign on the dotted line and know what they were signing up for?

Of course, fair point.

The thing is though there is a hugely prolonged period of negative equity made even worse in a falling market, unless that is they have made substantial overpayments over the years which is unlikely by many because they would have been financially stretched in the first place to take out one of these mortgages.