Will the mortgage guarentee go ahead?

CLAPTON

the 'fees' applicable after 5 years have to be paid when incurred and can't be accrued until later.

brit1234

I think a more sensible idea is instead offer negative equity mortgage guarantees for existing owners. That way people can move to properties equal or less to their present loan value if in negative equity. It would add fluidity into the market, protect the banks, allow prices to fall and be far less risk to the tax payer than help to buy.

HAMISH_MCTAVISH

Yes, it's going ahead.

Yes, prices will rise and continue to rise through the next 15 years or so.

Yes, the next boom will make the last one look small by comparison.

But look, you've had 5 years to take advantage of these artificially low prices, so it's your own fault if you haven't done so yet.

carslet

HAMISH_MCTAVISH wrote: »

Yes, it's going ahead.

Yes, prices will rise and continue to rise through the next 15 years or so.

Yes, the next boom will make the last one look small by comparison.

But look, you've had 5 years to take advantage of these artificially low prices, so it's your own fault if you haven't done so yet.

exactly , so very true

Percy1983

HAMISH_MCTAVISH wrote: »

Yes, it's going ahead.

Yes, prices will rise and continue to rise through the next 15 years or so.

Yes, the next boom will make the last one look small by comparison.

But look, you've had 5 years to take advantage of these artificially low prices, so it's your own fault if you haven't done so yet.

What if you where born in 1997?

grizzly1911

Thrugelmir wrote: »

Not a guarantee it's a loan. Impaired credit applications will fall at underwriting hurdle. Days of bad lending decisions are over.

Days of bad lending decisions are over - for now.

Graham_Devon

This was talked about a bit on the radio today - with the majority thinking it shouldn't go ahead.

Today's stories

Help top buy is "very dangerous" expert warns
http://www.telegraph.co.uk/news/politics/conservative/10197095/George-Osbornes-Help-to-Buy-is-very-dangerous-expert-warns.html

George Osborne’s scheme to underwrite the mortgages of hundreds of thousands of home buyers is “very dangerous”, the Institute of Directors has warned.

Help to buy could create new housing bubble, Osbourne warned
http://www.guardian.co.uk/money/2013/jul/23/help-to-buy-mortgage-housing-bubble

George Osborne's latest attempt to kickstart the economy by underwriting a house-buying revival has been criticised by economists and campaigners, who warned that the scheme to partially guarantee £130bn of low-deposit mortgages risks creating a new housing bubble.

Lord Mervyn King has warned today the scheme is "too close for comfort".

Former Bank of England governor Lord King warned that the scheme is "too close for comfort" to a general scheme to guarantee mortgages.
The Bank's deputy governor, Paul Tucker, also warned that it would be "unwise" as a medium or long-term scheme.
"This is not a market that needs a permanent subsidy," he said recently. "They (home loan guarantees) are devices for getting out of a hole to dig another one for the future."

http://www.independent.co.uk/news/uk/politics/revealed-fresh-details-on-governments-helptobuy-housing-scheme-8727951.html

The IMF and the Office for Budgetry Responsibility have also criticised the scheme.

Both the Help to Buy schemes have come under criticism from bodies such as the International Monetary Fund and the government’s own Office for Budget Responsibility, which have warned it risks creating another property bubble.

As I said earlier - this isn't good press coverage.

Percy1983

Graham_Devon wrote: »

This was talked about a bit on the radio today - with the majority thinking it shouldn't go ahead.

Today's stories

Help top buy is "very dangerous" expert warns
http://www.telegraph.co.uk/news/politics/conservative/10197095/George-Osbornes-Help-to-Buy-is-very-dangerous-expert-warns.html
Help to buy could create new housing bubble, Osbourne warned
http://www.guardian.co.uk/money/2013/jul/23/help-to-buy-mortgage-housing-bubble
Lord Mervyn King has warned today the scheme is "too close for comfort".
http://www.independent.co.uk/news/uk/politics/revealed-fresh-details-on-governments-helptobuy-housing-scheme-8727951.html

The IMF and the Office for Budgetry Responsibility have also criticised the scheme.


As I said earlier - this isn't good press coverage.

Graham you are going it wrong.

Each of those should be a new seperate thread.. Hamish Styleee!

Thrugelmir

Graham_Devon wrote: »

As I said earlier - this isn't good press coverage.

However no-one has said not to go ahead with the scheme though. The points that have been raised are valid and will no doubt form part of the final version of the scheme.

ManAtHome

Surprised (not really) that there's no mention that 'the taxpayers' underwriting this scheme are currently coughing up £100 billion a year less than UK plc running costs (meh, billions are soooo noughties....).