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wotsthat

globalds wrote: »

That is not a subsidy ..The high cost of market rents is directly influenced by the lack of council houses. Due to a lack of social competition ..Private landlords are charging too much and consequentially then paying too much for houses also affecting the market.
you are not only putting the cart before the horse ..you are stating the cart pulls the horse ..

Build a million new council homes and tell me if the present rents are at market rate ?

This isn't difficult. Explaining why the market rent may be high doesn't address the issue. For whatever reason rents are high - nanny protects council tenants from the market.

If a million council houses were build market rents would fall - so what?

gazzabboi

wotsthat wrote: »

What pension contributions? The army pension is non-contributory.

This is a new scheme starting next year with £200m allocated to it and seems to be light on detail.

I think you're missing the point slightly. I can help my son but instead of having to hand over cash to ensure he can get a 75% mortgage the taxpayer will do that for me.

Therefore, say, I've still got £30k in my bank and much more choice where to put this. Yes, putting in his mortgage would save him interest but if, for example, my mortgage or saving rate is higher it makes more sense to make a higher return.

Its non contribution on a personal level, but as an employers prospective there are contributions. I'm fairly sure it will run the same as lsap, if your boring just Google jsp 752 and have a read.

On your second point, good look finding a savings rate that will beat most mortgage rates

wotsthat

tinkerbell28 wrote: »

So I don't know where you're getting your ideas from, but it's not correct. It's not coming from pensions.

Yes I know - it's not me saying it is.

tinkerbell28

gazzabboi wrote: »

Its non contribution on a personal level, but as an employers prospective there are contributions. I'm fairly sure it will run the same as lsap, if your boring just Google jsp 752 and have a read.

On your second point, good look finding a savings rate that will beat most mortgage rates

Not to mention, the pay review takes into account the pension, when deciding pay.

So it's not strictly non contribution. Those in skilled trades especially are paid significantly less than civvies. To account for subsidised housing and pension.

HAMISH_MCTAVISH

globalds wrote: »

That is not a subsidy ..The high cost of market rents is directly influenced by the lack of council houses.

So what?

Market prices deal with the reality as it exists, not some fairy tale of what might be.

Rents are set by supply and demand.

Unless you're a council tenant, in which case rents are subsidised by the state at below market value.

If you build another million council houses, and do so before population rises, then rents will fall.

Until then, council rents are subsidised, and there's no other way to put it.

tinkerbell28

wotsthat wrote: »

Yes I know - it's not me saying it is.

Yes but it won't be funded by the taxpayer either. It's an advance of pay which he will have to pay back, out of his pay.

His tax code will change as he will actually be paying more tax. So in fact, anyone who takes a loan over 5k is giving more money direct to the tax man.

Plus as I've said, I wouldn't be making plans on him qualifying. Not a new recruit at 18.

dotdash79

I expect that the lending multiples will be lower if you use this scheme than if you wanted to borrow without it.

tinkerbell28

dotdash79 wrote: »

I expect that the lending multiples will be lower if you use this scheme than if you wanted to borrow without it.

Depends on how much, how long left and when you hit the payment schedule.

For most there is a 2 year break in payment, by which time you've incremented enough to cover the loan when it starts.

So they don't always take it into account. Depends if you've got a lender who knows how lsap works.

globalds

wotsthat wrote: »

If a million council houses were build market rents would fall - so what?

So if market rents are subjective why try and use them as an objective bench mark .

wotsthat

gazzabboi wrote: »

Its non contribution on a personal level, but as an employers prospective there are contributions. I'm fairly sure it will run the same as lsap, if your boring just Google jsp 752 and have a read.

So you don't know it's got anything to do with pensions then.

gazzabboi wrote: »

On your second point, good look finding a savings rate that will beat most mortgage rates

Have you heard of offset mortgages?

Having access to the money instead of paying a lump sum off his mortgage means that if I can beat his mortgage rate then I'll do that. If I can't I'll stick it in his mortgage until I can.

Currently I'm about to move from a 2.5% to a 2.99% mortgage deal and getting 4.25% in a cash ISA. Come November the 4.25% rate finishes and, for the first time in 7 years, there's a chance that my mortgage rate will be higher than savings rate.

No problem - I'll bung it in the mortgage until such a time the situation turns around (which it will).