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Help to Buy is nothing but an election ploy....
Comments
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You're thinking of funding for lending, I think.
I hope they do reconsider.
The Help to Buy scheme to lift the housing market should be reconsidered by the government, according to Business Secretary Vince Cable.
He told the BBC: "We certainly need to look at that [scheme] again. It was conceived in very different circumstances."
"Help to Buy has been criticised by some who say it has boosted house prices too quickly.
Mr Cable talked of a "raging housing boom" in London and the South-East.
He warned of a danger of the Bank of England not raising interest rates and "of course this boom that's taking place in house prices gets out of control and the only people who can afford to live in large parts of London are foreigners and bankers".
Mr Cable also told the Andrew Marr Show the ratings agency Standard and Poor's, which gives the UK its top AAA credit rating, is "expressing worries" on the impact of Help to Buy."
Andrew Marr show.
http://www.bbc.co.uk/news/business-25484804"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 -
Whitehall is apparently looking at pushing through a halving of the limit.
So in other words, reducing it to 300k, initially. However, they still have to get it through parliament and are still "looking very closely at it".
Whether they could convince the politicians is another matter, as they are hell bent on claiming that the BOE will look into it in September. Thought he BOE are very keen to point out they have no mandate.
Think the key thing here is the sheer weight of all those warning on this scheme now.0 -
You're thinking of funding for lending, I think.
I hope they do reconsider.
Ah yes it says so further down
In an attempt to ensure that relatively cheap mortgages do not fuel an
"overheated" market, the Bank of England at the end of November refocused the Funding for Lending Scheme (FLS) on business, not mortgage borrowers.
Under the scheme, banks and building societies were allowed to borrow up to £60bn cheaply from the Bank of England, as long as they then loan that money on.
Governor Mark Carney said that supporting mortgage lending was "no longer
necessary" and FLS will be refocused on businesses from January 2014.
Mr Cable said at the time the decision to reform the FLS terms was "very
wise".0 -
Graham_Devon wrote: »Whitehall is apparently looking at pushing through a halving of the limit.
So in other words, reducing it to 300k, initially. However, they still have to get it through parliament and are still "looking very closely at it".
Whether they could convince the politicians is another matter, as they are hell bent on claiming that the BOE will look into it in September. Thought he BOE are very keen to point out they have no mandate.
Think the key thing here is the sheer weight of all those warning on this scheme now.
It's now purely down to politics. Vince Cable has changed his argument slightly and it must be music to Osborne's ears i.e. the economy is doing so much better than anticipated at the last budget rendering the scheme less relevant.
There's scope for Osborne to abandon HTB2 or water it down (because he's so awesome), Carney would be supportive (he must be sick of hearing about HTB) and Vince Cable would get thrown a bone (and would have to find another small bone to waffle about).
Seems like you're coming around to my way of thinking.0 -
Vince Cable is a doddery old idiot.0
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Loughton_Monkey wrote: »Vince Cable is a doddery old idiot.
We have plenty of young idiots champing at the bit to take over."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 -
:rotfl:
at bribing brainwashed Daily Mail and Express readers with worse than useless house price rises and a debt led recovery! Perhaps it should be called Bribes for Votes
Yes my comment was tongue in cheek.
There's a general election looming and the coalition is looking shaky. Political motivations will trump economics even more than normal for the next 18 months.
Graham has been posting ever longer lists of people/ organisations that are against HTB (or warning about some of the possible consequences at least). At the point the political advisers determine that HTB is a vote loser it'll be dropped like a sack of spuds. When/ if that point comes then Osborne is sitting pretty because he'll be taking full credit for a recovering economy and will have the full support of Vince Cable who has said the economy is now in a very different place - the double dip never happened and things are on the up.
...and house prices will still keep rising with or without a watered down HTB so if people vote Tory because their house has increased in value then nothing's been lost.
In the meantime the recovering economy will render HTB superfluous as deposit requirements fall with increasing competition in the mortgage market and appetite for risk amongst lenders. HTB will start to look like an expensive way to buy a house.
A rising tide floats all boats. Although for balance I should point out that if they've got a hole in them they will sink and swimming lessons would be advisable for anyone taking to sea.0 -
grizzly1911 wrote: »The Help to Buy scheme to lift the housing market should be reconsidered by the government, according to Business Secretary Vince Cable........
You'd never guess from that statement that Mr Cable was actually a member of the government, would you?
Would someone like to take the time to explain the concept of 'collective cabinet responsibility to the man?....In the meantime the recovering economy will render HTB superfluous as deposit requirements fall with increasing competition in the mortgage market and appetite for risk amongst lenders......
Wouldn't that be HTB2 operating exactly how it was intended to?0 -
Wouldn't that be HTB2 operating exactly how it was intended to?
Yes but it comes with fees, administration and taxpayer risk.
A recovering economy might encourage lenders to do the same thing themselves more efficiently than a government scheme and with potentially less risk to the taxpayer.0
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