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People will adjust their spending habits in order to afford their mortgage
Comments
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Genuinely curious, as I haven't looked in to the details at all, but is there likely to be a delayed problem with these help to buy mortgages? Does the initial loan from the government have to be paid off at a particular point? And if so, what happens if people have not saved enough to do so?
It will end up being another can kicking exercise and more and more schemes and 'assistance' will be required in the future.0 -
shortchanged wrote: »It will end up being another can kicking exercise and more and more schemes and 'assistance' will be required in the future.
False.
These schemes are only a result of the government and BOE stepping in to restore functionality to a dysfunctional mortgage market.
When unassisted lending returns to normal volumes of 100K+ per month, they can and should be withdrawn.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.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: »False.
These schemes are only a result of the government and BOE stepping in to restore functionality to a dysfunctional mortgage market.
When unassisted lending returns to normal volumes of 100K+ per month, they can and should be withdrawn.
But Hamish your view of a normal functioning mortgage market is the loose lending such as high income multiples, loads of IO mortgages very low deposits. These seriously contributed to the problem of high prices we have now.
So in order for levels to get back to what is a functioning market either loose lending has to return or prices need to fall, otherwise there is a void.0 -
Graham_Devon wrote: »This is alright, but look at the people thanking this. 6 out of the 8 of them celebrate high house prices and encourage debt. Hell, two of them appear to encourage outright fraud to take on debt.
That's what your little slur is really about here. YOU haven't given any solutions to the question posed, just gone to the other extreme and suggested they wash in birdbaths.
I can't compete with the support you are getting. I said it yesterday, I'm more of a lone voice on here. But you are the ones coming up with the suggestions that people will cut back, yet you are the very same ones who won't answer how and instead post responses such as above which do nothing but belittle the person asking the question.
Cooking your own soup, driving less, cutting the heating down one notch on ther thermometer are all great moneysaving exercises and I'm not dismissing them, not at all. What I am saying though is that these very sensible cost saving measures won't come anywhere near the amount your expenditure has increased in the example of a 2% mortgage rate rise. People are currently talking on 4x their income mortgages at today's rate. I think, when looking at these people, my point is valid. I've never suggested I;m looking at anyone else, other people have suggested I am.
Do your best with the slurs back, you'll get lots of support....but deep down you know these people will be in trouble. I'm just not sure you really give a damn.
OK - if you buy a coffee every day at Costa or similar costing £1.99 a day over the course of a year you will have spent £477 a year. Cut them out. Definitely not a necessity and loads of people do it.....sometimes more than one a day. I used to buy one to take into work every morning and sometimes meet a friend at lunch time and have another one.......
The average family wastes almost £700 (a third of the average families food) year on food....throws it out. Do a meal plan and a shopping list and stick to it. If you can't stick to it then shop online. No one should throw food away....I used to be really bad.....with a little bit of planning we throw very little food away. Don't stick things that aren't on your list into your trolley because they are a "bargain. Use MYsupermarket and see who is the cheapest....become a supermarket tart.
Stop buying premium brands - use the shops own - often similar quality for a lot less cost......stop using the eye level shelves in the supermarket.
If you buy a sandwich or something else at work for lunch and spend around £3 per day (plenty do and I used to be one of them), that's £15 a week......or around £700 a year....make your own save £300 or £400 a year.
Ofcom said 37% of households had freeview as their main viewing which means that 63% pay a subscription........if you have a subscription and need to save money then either cancel it, reduce it or threaten to leave and get the same thing for less. Potential saving if you have the cheapest Sky package and give it up - £258.
If you drive less than 6k miles consider joining a car club...you get a car when you like for about £4 to £5 an hour and you never have to think about maintenance, MOTs, road tax or anything else....if you use public transport for work then schemes like could save between £3k and £6k a year. You have to pay a subscription to join but the saving especially for light users could be huge.
http://www.carplus.org.uk/
Join a car sharing scheme for work.....maybe even set one up - then you could halve and perhaps quarter your fuel costs to work.
Do you have a bank account that you pay for with benefits you don't use? Then save yourself about £140 a year and change it a "free" account.
Check your direct debits and make sure you have no unnecessary money going out....do your really need that WWF fund subscription....£120 a year.....
There are up to £1300 a year savings there and that's not using the car scheme.....and using half of the food waste total and lowest of the sandwich for lunch figures. I've used a figure for a tv subscription of £21.50 a month as the majority of households actually do subscribe.
I could go on....I know not everyone buys coffee or sandwiches or has Sky or throws away a third of the food they buy but an awful lot of people do. Potentially there some significant savings for a lot of people.0 -
shortchanged wrote: »But Hamish your view of a normal functioning mortgage market is the loose lending such as high income multiples, loads of IO mortgages very low deposits. These seriously contributed to the problem of high prices we have now.
So in order for levels to get back to what is a functioning market either loose lending has to return or prices need to fall, otherwise there is a void.
False.
My view of a normally functioning market is when mortgages are widely available to the masses with a historically normal, prudent and sensible 5% to 10% deposit without banks making record margins above both base and funding costs like they are today.
We don't want a return to the abnormally loose lending of 2007.
But we can't stay at the abnormally tight lending of today.
A balanced middle ground, that is historically normal, prudent, and sensible, is all that is required for millions to be able to buy.
And we don't have that today.“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 -
I think it's been accepted that the flexibility of the workforce after the crash was one of the good points about UK populace.
The crash hit a very specific part of the economy hard. Much was relatively untouched. The impact of rebalancing the economy is yet to be seen. Along with the measures necessary to bring state spending down to a sustainable level.0 -
HAMISH_MCTAVISH wrote: »False.
My view of a normally functioning market is when mortgages are widely available to the masses with a historically normal, prudent and sensible 5% to 10% deposit without banks making record margins above both base and funding costs like they are today.
We don't want a return to the abnormally loose lending of 2007.
But we can't stay at the abnormally tight lending of today.
A balanced middle ground, that is historically normal, prudent, and sensible, is all that is required for millions to be able to buy.
And we don't have that today.
Table 517 on this Government Statistics Site doesn't seem to support those normal ratios you quote:think:
https://www.gov.uk/government/statistical-data-sets/live-tables-on-housing-market-and-house-prices"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 -
HAMISH_MCTAVISH wrote: »
When unassisted lending returns to normal volumes of 100K+ per month, they can and should be withdrawn.
How will they be withdrawn when someone is living in a property having taken advantage of the offer?
How soon do you think it will be before we achieve what ever volumes are deemed "normal" without assistance?"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 -
Genuinely curious, as I haven't looked in to the details at all, but is there likely to be a delayed problem with these help to buy mortgages? Does the initial loan from the government have to be paid off at a particular point? And if so, what happens if people have not saved enough to do so?
the loan is interest free for the first 5 years
thereafter the interest has to be paid monthly
the actual loan is paid off when you sell the property plus profit
or you can repay at any time0 -
grizzly1911 wrote: »Table 517 on this Government Statistics Site doesn't seem to support those normal ratios you quote:think:
https://www.gov.uk/government/statistical-data-sets/live-tables-on-housing-market-and-house-prices
Makes interesting reading average FTB advance against income didn't exceed 3.4x in boom0
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