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Confirmed: Mortgage Guarantee Scheme Going Ahead
Comments
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Indeed....“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 don't like the new mortgage guarantee. It means that if all goes wobbly again, these people on 95% mortgage will default and who will pick up the bill?
The tax payer!
Under the old system, we let banks lend up to 120% of value, and when things went wobbly, who picked up the bill?
Er.... the tax payer!
Deja who?0 -
Loughton_Monkey wrote: »I don't like the new mortgage guarantee. It means that if all goes wobbly again, these people on 95% mortgage will default and who will pick up the bill?
The tax payer!
It does not matter as it would have served it's sole purpose of selling an overpriced new home to the person. The Government are not famous for looking at unintended consequences!0 -
The US already has had this system for a long time and it worked quite well.
But if we do this we must also do as the US does, only guarantee loans that are granted conservatively.
But this does then create a sub-prime market as in the US which needs to be heavily regulated.
In the US pretty much all mortgages are underpinned by the government now. You have to worry when other lenders say it is not commercially viable to lend, sends the signal that the US system is very broken.
How does the government escape without bringing the house of cards down. What the US and here need is a return to the free market.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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Vince Cable warns Help to Buy could create new 'bubble'
The proposal which hasn't yet been implemented, which is providing a guarantee for a limited range of mortgages, could be a problem. It could inflate the market.
http://www.bbc.co.uk/news/business-23482525"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: »Vince Cable warns Help to Buy could create new 'bubble'
The proposal which hasn't yet been implemented, which is providing a guarantee for a limited range of mortgages, could be a problem. It could inflate the market.
http://www.bbc.co.uk/news/business-23482525
Has he only just caught up!?
Can't take him seriously anymore anyway. A shame, used to state the obvious and actually have some credit behind him.0 -
In the US they are using the improving economy to reduce state subsidies to homeowners.
http://www.bbc.co.uk/news/world-us-canada-23597986US President Barack Obama has urged a revamp of the housing market that would "wind down" government-owned mortgage giants Fannie Mae and Freddie Mac.
Speaking in Arizona, Mr Obama said action was needed to ensure that the rebounding US property market does not simply "re-inflate the housing bubble".
He wants to replace the two lenders with a system leaving the onus of loan risk primarily on the private sector.
The US had to prop up Fannie Mae and Freddie Mac in the 2007-09 recession.
Do those that are worried by a Help to Buy bubble not think the government would simply start to wind down schemes as the economy improves?0 -
In the US they are using the improving economy to reduce state subsidies to homeowners.
http://www.bbc.co.uk/news/world-us-canada-23597986
Do those that are worried by a Help to Buy bubble not think the government would simply start to wind down schemes as the economy improves?
currently the schemes have a life of 3 years, are not full mortgages, have limited scope so are no in any way comparable with the US situation.0
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