Forced to Buy

demontfort

Following double digit price growth across the country in 2014, David Cameron today proudly announced the launch of a new scheme to further inflate the UK housing bubble. Forced to Buy will involve penalising all people over the age of 18 who don’t own a house with a series of tax deductions. The money will then be used to subsidise 150% LTV mortgages for people who can’t afford conventional mortgage because they either have an unreliable income or are already drowning in debt. These individual will not have to stump up a deposit but instead sign an IOU certificate promising to repay the government when their house is repossessed.

Speaking on the Today show on Radio 4 Mr Cameron said “ I really don’t think it’s fair that hard working, skint young people with mutiple payday loans and poor financial discipline are not being lent money by banks to buy property. I want to empower them through this scheme and give them a chance to buy overpriced new build shoeboxes constructed on the site of all the hospitals and factories that have closed down under my government. We have consulted widely with Estate Agents and Housebuilders before introducing this scheme and draw inspiration from the incredible success of the mortgage lending programmes that offered aspirational individuals a foot on to the property ladder in Detroit and other major US cities prior to 2008. I believe this is the right thing to do and nothing can go wrong”

HAMISH_MCTAVISH

Reported as :spam:

Or should be moved to the "debate house prices" wilderness.....

demontfort

HAMISH_MCTAVISH wrote: »

Reported as :spam:

Or should be moved to the "debate house prices" wilderness.....

That's rich coming from the man who runs the MSE house price Spam producing factory :rotfl::rotfl::rotfl::rotfl:

HAMISH_MCTAVISH

demontfort wrote: »

That's rich coming from the man who runs the MSE house price Spam producing factory :rotfl::rotfl::rotfl::rotfl:

I simply report the facts.

Not my fault you don't like them....:D

demontfort

HAMISH_MCTAVISH wrote: »

I simply twist the facts.

Not my fault you don't like them....:D

Well at least we can agree on one thing :rotfl:

ruggedtoast

I think even the least financially literate of voters are starting to wonder what on earth the government think they are doing.

We all know there is a housing shortage, hurling public money at people to compete for the limited amount of what there is, and the tiny dribble of new builds the builders will agree to release, will do nothing other than to further inflate a precarious bubble.

JencParker

ruggedtoast wrote: »

I think even the least financially literate of voters are starting to wonder what on earth the government think they are doing.

We all know there is a housing shortage, hurling public money at people to compete for the limited amount of what there is, and the tiny dribble of new builds the builders will agree to release, will do nothing other than to further inflate a precarious bubble.

True, although I suspect there won't be much of a bubble all the time there is a huge shortage of housing and foreign investors ready to buy unless many more homes are built - and they won't be.

A perfect way to help a few while keeping the less well off in their place! But then that's a Tory government for you.

ValHaller

HAMISH_MCTAVISH wrote: »

Reported as :spam:

Or should be moved to the "debate house prices" wilderness.....

It is as much spam as is your campaigning on these forums over the years. As for the "debate house prices" wilderness, would you mind going back there or is that a bridge too far ?

Tancred

demontfort wrote: »

Following double digit price growth across the country in 2014, David Cameron today proudly announced the launch of a new scheme to further inflate the UK housing bubble. Forced to Buy will involve penalising all people over the age of 18 who don’t own a house with a series of tax deductions. The money will then be used to subsidise 150% LTV mortgages for people who can’t afford conventional mortgage because they either have an unreliable income or are already drowning in debt. These individual will not have to stump up a deposit but instead sign an IOU certificate promising to repay the government when their house is repossessed.

Speaking on the Today show on Radio 4 Mr Cameron said “ I really don’t think it’s fair that hard working, skint young people with mutiple payday loans and poor financial discipline are not being lent money by banks to buy property. I want to empower them through this scheme and give them a chance to buy overpriced new build shoeboxes constructed on the site of all the hospitals and factories that have closed down under my government. We have consulted widely with Estate Agents and Housebuilders before introducing this scheme and draw inspiration from the incredible success of the mortgage lending programmes that offered aspirational individuals a foot on to the property ladder in Detroit and other major US cities prior to 2008. I believe this is the right thing to do and nothing can go wrong”

Cameron is just an opportunist who wants to come out with ideas that will get him votes. This hare brained scheme won't help buyers because the economics of the housing market is staying the same - supply isn't increasing. So the additional demand will fuel increasing prices. Of course EAs don't mind! They stand to make more money.

kingstreet

Are we surprised a politician is trying to do things to win votes in the week of his party conference?

HTB - MG is not going to be the issue many are predicting. There are 17 lenders currently offering 95% products and if you really want a 95% mortgage you can get one.

Lenders are not going to relax their criteria or affordability requirements for this, so if you couldn't get a 95% mortgage of the amount you want last week, you still won't get one this...

Lenders are afraid of the FCA and afraid of the MMR which will see them being accountable for mortgage advice. I can see things getting tighter in the early part of next year, not more loose.

Feel free to bookmark this thread and come back and tell me I'm wrong, if the predictions come true.