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CRASH! Required mortgage deposits fall by 75%....

The government’s home ownership scheme will reduce the average deposit needed to buy a property in England from £44,000 to just £11,000, say researchers.

As a result of the policy, potential buyers will need a deposit of less than £10,000 to get on the property ladder with a budget of £200,000, according to property website Zoopla.

David Cameron defended the policy as a way to correct a “banking failure” that had resulted in lenders asking for large deposits."

“I don’t want to be the prime minister who stands aside and says you can only buy a flat or a house if you’ve got rich parents,” he said.
http://www.ft.com/cms/s/0/baddbf00-2d0e-11e3-a0ac-00144feab7de.html#axzz2h1CoTyax

:beer:
“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”
«13

Comments

  • This is fantastic news for first time buyers and the economy in general. There's never been a better time to snap up a bargain for sure.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    If you want more people to be able to own property then you will see this is a good thing.
    As a result of the policy, potential buyers will need a deposit of less than £10,000 to get on the property ladder with a budget of £200,000, according to property website Zoopla.
    If you don't think this is a bad thing you obviously want less people to buy property for your own agenda.

    In saying this, it's only a article deriving info from Zoopla.
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I expect the Devon boy will be cheering on this new development, having complained just yesterday about rising costs for FTB-s. :)
    “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”
  • Percy1983
    Percy1983 Posts: 5,244 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I don't get it, if I can 75% on the currently available 10% deposit mortgages I get 2.5%.

    I didn't know HTB was doing 2.5% I thought it was 5%?
    Have my first business premises (+4th business) 01/11/2017
    Quit day job to run 3 businesses 08/02/2017
    Started third business 25/06/2016
    Son born 13/09/2015
    Started a second business 03/08/2013
    Officially the owner of my own business since 13/01/2012
  • MrRee_2
    MrRee_2 Posts: 2,389 Forumite
    Brilliant News!!!

    Those over on HPC, those who didn't secretly buy anyway, are feeling the pain now - stuck in rented flats, making their families suffer the indignation of not being able to paint the walls the colour they want and being stuck in paying rent for the rest of their days.

    Cornwall boy surely would be happy about this help for the FTB's ... or maybe he will find negative in this as well? You just can't tell ;)
    Bringing Happiness where there is Gloom!
  • Conrad
    Conrad Posts: 33,137 Forumite
    10,000 Posts Combo Breaker
    Devonboy won't be satisfied with anything less than an intervention to reduce the cost of property, but of course no Government would bring about such a thing so I cant really see what the point in moaning is.

    Instead see the positive property journey the bulk of us can take and benefit from in the long run, something the young can aspire to rather than fear.
  • Fella
    Fella Posts: 7,921 Forumite
    1,000 Posts Combo Breaker
    This is fantastic news for first time buyers and the economy in general. There's never been a better time to snap up a bargain for sure.

    Really? I bought in 1997, that was quite a lot better.
  • Conrad wrote: »
    Devonboy won't be satisfied with anything.......

    Should've stopped right there.
  • IveSeenTheLight
    IveSeenTheLight Posts: 13,322 Forumite
    Percy1983 wrote: »
    I don't get it, if I can 75% on the currently available 10% deposit mortgages I get 2.5%.

    I didn't know HTB was doing 2.5% I thought it was 5%?
    The government’s home ownership scheme will reduce the average deposit needed to buy a property in England
    ........................
    :wall:
    What we've got here is....... failure to communicate.
    Some men you just can't reach.
    :wall:
  • Percy1983
    Percy1983 Posts: 5,244 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    ........................

    Is it the average needed or the average taken?

    The average taken will of course be higher as bigger deposits give better rates, my inital plan was to go for 15% until the perfect house appeared.

    So the average needed would be what was the amount needed to get a mortgage, now as all providers seem to provide mortgages at 90% then sure the average needed entry point is 10%.
    Have my first business premises (+4th business) 01/11/2017
    Quit day job to run 3 businesses 08/02/2017
    Started third business 25/06/2016
    Son born 13/09/2015
    Started a second business 03/08/2013
    Officially the owner of my own business since 13/01/2012
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