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MSE News: Funding for Lending scheme scrapped for homebuyers
Comments
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The scheme that has been scrapped ... it could even potentially help as ammunition on negotatiations for price if the vendor worries that this will hamper their efforts to sell..
Don't see why not, given that sellers have played the same trick on the way up. Sadly, first time buyers have been easy meat : many of those sitting on the sidelines suddenly felt a sense of urgency to get a mortgage and get into the property market ("before I'm priced out!"). That meant taking part in a bidding war.
It's funny how even people on MSE, who might be expected to go to all sorts of trouble to avoid buying flowers at Mother's Day bid-up prices, when shown a bid up house price, with obvious, demonstrable, temporary, causes, instantly panic and cave in.
If you think about it, its rather shameful of government to target leveraged investments (how else would you describe an asset bought with a 5% deposit that yields maybe 3%?) at the younger generation, who, relatively speaking, have far less financial acumen. But they did the same with student loans. Then again, who else was about to get themselves in hock to the tune of ~ £50k just to get a fast depreciating education? I suppose Osborne takes the view that it's all spending, all tax receipts ... and let's not forget that one of his Bulligdon Club mates believes it's only right that the less savvy should be financially worse off ...0 -
.A lot of London purchases are cash anyway so they are immune to interest rates
changes
All the sources I can find say its 24% so 76% are still mortgaged. The South West leeds the way with 39% being cash buyers which is surprising.
http://www.thisismoney.co.uk/money/mortgageshome/article-2454161/Cash-buyer-hotspots-A-homes-bought-mortgage.html0 -
I am a journalism student from UCLAN and just wondering if anyone would mind sharing their opinions on the funding for lending scheme and the rise in the property market within the past 15 years.
I am researching how much prices have gone up by in general and especially for first time buyers.
I'd be really interested to know your thoughts and opinions on the matter.0 -
JournalismStudent123 wrote: »I am a journalism student from UCLAN and just wondering if anyone would mind sharing their opinions on the funding for lending scheme and the rise in the property market within the past 15 years.
I am researching how much prices have gone up by in general and especially for first time buyers.
I'd be really interested to know your thoughts and opinions on the matter.
Funding for lending has only been around since the middle of last year. (Just in case you didn't know.)0 -
Thank you, I did know
It's just my article concentrates on the past 15 years but for a section of my article I wanted to know what people thought about the scheme?0 -
JournalismStudent123 wrote: »Thank you, I did know
It's just my article concentrates on the past 15 years but for a section of my article I wanted to know what people thought about the scheme?
Funding for lending was a liquidity move by the BOE for the banks.
It's purpose was to ease the liquidity crisis, restore some semblance of functionality to dysfunctional lending markets, and essentially to increase the amount of mortgages and business lending available.
As wider credit conditions have eased and are starting to return to a more normal level, it can and should be withdrawn.
If wider credit conditions tighten, then chances are it or something similar would be reinstated.“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”0 -
And if you're interested in the last 15 years, then I suggest you read this....
http://www.mortgagestrategy.co.uk/news-and-features/covers/are-uk-rmbs-ready-to-rocket/2003452.article
And this....
http://www.bbc.co.uk/news/business-17398014
And for where we're likely to be heading next, ie, a return to more normal funding levels, read this....
http://www.mortgagestrategy.co.uk/news-and-features/sectors/products/boe-director-says-rmbs-does-not-need-to-be-bogeyman-of-industry/2004287.article“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”0 -
And for additional background, read these.....
https://forums.moneysavingexpert.com/discussion/4822678
https://forums.moneysavingexpert.com/discussion/4828230
https://forums.moneysavingexpert.com/discussion/4823161
https://forums.moneysavingexpert.com/discussion/4797209
https://forums.moneysavingexpert.com/discussion/4791795
https://forums.moneysavingexpert.com/discussion/4791390
https://forums.moneysavingexpert.com/discussion/4635569“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”0 -
Thank you so much, I appreciate this0
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Could anyone also fill me in on why house prices have risen so dramatically?0
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