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Pensions to be used for mortgage guarantees?
HAMISH_MCTAVISH
Posts: 28,592 Forumite
Clegg just announced this policy was coming on the Andrew Marr show.
The idea being that parents/grandparents can use their pension pot to guarantee a portion of their children/grandchildrens mortgage so allowing them to actually get one with a more normal 5% or 10% deposit.
The only way this will work is if it actually does legally bypass the capital withholding requirements and get the banks to lend at higher LTV-s without imposing punitive rates.
So like all these schemes so far, I have my doubts it will work, as it's probably going to be half-baked and full of loopholes that allow the banks to continue lending a third of the money at three times the margin they did prior to the credit crunch.
But it's becoming increasingly obvious the government know full well what has to happen if we're to get a recovery in time for the next election.
Now all they have to do is stop being so incompetent and launch a scheme that will actually work....:cool:
The idea being that parents/grandparents can use their pension pot to guarantee a portion of their children/grandchildrens mortgage so allowing them to actually get one with a more normal 5% or 10% deposit.
The only way this will work is if it actually does legally bypass the capital withholding requirements and get the banks to lend at higher LTV-s without imposing punitive rates.
So like all these schemes so far, I have my doubts it will work, as it's probably going to be half-baked and full of loopholes that allow the banks to continue lending a third of the money at three times the margin they did prior to the credit crunch.
But it's becoming increasingly obvious the government know full well what has to happen if we're to get a recovery in time for the next election.
Now all they have to do is stop being so incompetent and launch a scheme that will actually work....:cool:
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
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Comments
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Lib Dem talking heads on BBC news now, noting that it's the size of deposit which is the main obstacle for young people.
And if we're going to get house building moving again to fix the wider economy, then people need to be able to get mortgages, which they can't at the moment.
It does seem some minds are finally being focused by the low poll results and the election being just over 2 years away....“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Sounds ridiculous to me.
The only thing I can see "working" in the current climate is the government just giving FTBs a deposit.0 -
chewmylegoff wrote: »The only thing I can see "working" in the current climate is the government just giving FTBs a deposit.
Well that would solve the problem.
And it's not entirely unheard of in modern western societies...“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Has anyone grasped the fact that it is high house prices that are the problem?
All these schemes do is highlight that property is still far too unaffordable to many.0 -
HAMISH_MCTAVISH wrote: »Lib Dem talking heads on BBC news now, noting that it's the size of deposit which is the main obstacle for young people.
And if we're going to get house building moving again to fix the wider economy, then people need to be able to get mortgages, which they can't at the moment.
It does seem some minds are finally being focused by the low poll results and the election being just over 2 years away....
which is relative to the (over)price of the house0 -
shortchanged wrote: »Has anyone grasped the fact that it is high house prices that are the problem?
No.
Because that isn't the case.All these schemes do is highlight that [STRIKE]property is still far too unaffordable to many[/STRIKE] mortgage rationing is still endemic.
Fixed that for you.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »No.
Because that isn't the case.
:rotfl::rotfl::rotfl::rotfl:0 -
which is relative to the (over)price of the house
A 10% fall in house prices turns a 5% deposit into a 5.5% deposit.
The problem isn't prices. It's deposits.
Requiring a 25% deposit to get a decent rate is absurd.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »No.
Because that isn't the case.
No no, houses are overpriced Hamish, just admit it.0 -
shortchanged wrote: »No no, houses are overpriced Hamish, just admit it.
The Following User Says Thank You to shortchanged For This Useful Post: Show me >>
re-wired (Today)
Awww, bless.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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