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michaels

May be the 600k is also there to help 2nd time buyers looking to move up the ladder but who bought in the last 10 years and outside London therefore have little equity. No point just helping FTBs if those looking to move up the chain out of the FTB properties can not move due to insufficient deposits - after all many of them probably wouldn't qualify for their existing mortgage under current lending criteria......

CLAPTON

the schemes that make most sense are those that encourage house building like reducing planning restrictions, levies and social housing levies and the state freeing up land they are hoarding

restructuring and reducing stamp duty would encourage more mobility in the housing market for general benefit

a return to 10% mortgage availability should be considered 'normality' and shouldn't need state guarantees

Graham_Devon

michaels wrote: »

May be the 600k is also there to help 2nd time buyers looking to move up the ladder but who bought in the last 10 years and outside London therefore have little equity. No point just helping FTBs if those looking to move up the chain out of the FTB properties can not move due to insufficient deposits - after all many of them probably wouldn't qualify for their existing mortgage under current lending criteria......

How would this really help them?

Are you suggesting these peopl don't even have 5% equity? They can't save it? Yet we should all help give them an even bigger mortgage? Even though they have proven though can't save on their lower mortgage!?

What happened to all theslurs against these people "wanting it now"? Isn't this scheme providing exactly the thing so many have been suggesting on here is the wrong thing, i.e. the want it now mentality?

wymondham

michaels wrote: »

How many of the people knocking the scheme bought their first house with a deposit of less than 20% - only asking?

Good point. I bought our first house with a 100% mortgage. The difference is this didn't involve tax payer assistance... the bank took the risk (as did we!)

chucky

I know people who bought property and claimed they never had government assistance. They obviously didn't realise MIRAS was helping them.

leveller2911

michaels wrote: »

How many of the people knocking the scheme bought their
first house with a deposit of less than 20% - only asking?

Reading some of the other threads around the forum on the subject it seems many FTB are not happy about it either.

Many see prices rising before they buy now that more FTB are entering the market with their HTB deposit assistance.

Previously they had to save a decent deposit, now almost anyone can be in the game.Personally I'm still renting and won't be playing the game but fully expect lots of threads in the coming months from people whinging about how the HTB schemes have ruined their lives, how it wasn't their fault , blah,blah,blah.

CLAPTON

chucky wrote: »

I know people who bought property and claimed they never had government assistance. They obviously didn't realise MIRAS was helping them.

MIRAS didn't help anyone; like all subsidies it distorted the supply/demand situation ; in this case is caused the price to rise so the poor old buyer had to get a high mortgage/deposit

tinkerbell28

wotsthat wrote: »

Just wait until Graham hears about this.

Forces personnel are being given 10 year 0% loan towards their first house too up to 50% of salary.

My son is in the Army aged 18 and talking about buying a house. I could lend him the deposit and bank the loans and split the gain with him. Alternatively, I might just start searching early for my Cornish retirement pad and get him to buy it.

This is how these schemes are meant to work isn't it.

Happy days.

You can't. The lsap goes straight to the solicitor to pass on to the bank. Then they have to take up residence there.

globalds

wotsthat wrote: »

Compare this to a council house building scheme where the taxpayer builds the houses and, for reasons unknown, feel compelled to subsidise the rent of the occupants.

You really should post some evidence on this subsidy the taxpayer gives to council house tenants.

perhaps in the short term if you looked at the cost of building ..But houses last far longer than a normal mortgage ..
Maybe BTL landlords also subsidise there tenants ? ..Philanthropists ...the lot of them .

chucky

CLAPTON wrote: »

MIRAS didn't help anyone; like all subsidies it distorted the supply/demand situation ; in this case is caused the price to rise so the poor old buyer had to get a high mortgage/deposit

It subsidised people's mortgages allowing them to afford more expensive property that they may not have been able to buy, so increasing effective demand and prices.

In the 1983 Budget Geoffrey Howe raised the tax allowance from £25,000 to £30,000. Unmarried couples with joint mortgages could pool their allowances to £60,000, a provision known as Multiple Mortgage Tax Relief. This remained in place until the 1988 Budget, when Nigel Lawson ended the option to pool allowances from August 1988. Lawson later publicly expressed regret at not having implemented the change with effect from the time of the budget, as it is generally accepted that the rush to beat the deadline fuelled a sharp increase in house prices.[2]

MIRAS was completely abolished in April 2000 by Gordon Brown, who argued it had become a middle class perk.