Government unveils cheap mortgage plan for First Time Buyers

ManAtHome

It's an excellent way to reduce labour mobility. Once you've played your FTB joker you're a bit stuck - 50% of any equity isn't going to help much if you fancy re-locating on a 2TB mortgage. Nice little earner for whatever quango gets to select the lucky/essential applicants as well.

sfell

Okay I am just about to buy a house (FTB) but this scheme is just another con. I've looked into it and really it's just shared equity is it not? You still have to pay rent on the not owned part of the property. I live in Mancheter and ther are lots of 75% of houses/flats available. I appreciate it helps others but surely if the gov really wanted to help then they'd scrap the rent aspect, really a £700 morgage and £167 rent for £114,000 ( house =£157,000 or close to) Is that really saving anyone any money?
It's just encoraging people to buy houses that are way out of their pay packet.

MiserlyMartin

This scheme is rubbish. For one thing all it will do intially is push prices even higher for the most First Time Buyers who won't be on the scheme. Secondly its a gamble for the government to try and prop up the housing market using tax payers money. Should house prices drop as is most likely, they (us taxpayers) will have to foot the negative equity bill.

As already said there is rent to pay as well so nobody is really better off. And when the FTB comes to try and move up the chain they haven't got a full stake in the house so has can't very well move up to a 100% owned house. This is a desperate attempt to stop the house market crashing!

The council tax rebanding that Labour are doing is another way to put up income tax without us noticing and that won't help the budgets of the First Time Buyer either.

House prices are coming down eventually, Mr Brown can try to stop it but it won't work for long.

Pal

This scheme is only designed to prop up the housing market for two years or so, the length of time it will take Gordon Brown to become PM. The house market will then crash horribly but it won't be Gordon's fault.....

He will then get voted out at the next election. Great career plan Gordon!

purplefirth

meanmachine wrote:

Then why Purple are you not demanding that second homes are made illegal, or else subject to punative taxes?

That would help you MUCH more than a token scheme to bribe a few dozen FTBers to take on massive loans.

The fact is, this government has raided pensions and left homes as the only source of equity. Once that goes, in the way of a crash, the entire UK economy is down the crapper. Hence this last ditch scheme.

Far too little, far too late.

I totally agree meanmachine, if demanding the above would help then I would but it isn't going to get me anywhere. I don't think this scheme IS going to help in the long run but like I said before what choice do I have. I've been waiting 5 years for things to calm down but the prices keep on going up and up, meanwhile I'm paying out a fortune to a landlord whose raking it in at my expense, in the end I get nothing this way at least with govt help I end up with a roof over my head without the risk of being asked to move on with one months notice. Believe me its no fun, whats a girl to do (legally)?

meanmachine_2

purplefirth wrote:

I totally agree meanmachine, if demanding the above would help then I would but it isn't going to get me anywhere. I don't think this scheme IS going to help in the long run but like I said before what choice do I have. I've been waiting 5 years for things to calm down but the prices keep on going up and up, meanwhile I'm paying out a fortune to a landlord whose raking it in at my expense, in the end I get nothing this way at least with govt help I end up with a roof over my head without the risk of being asked to move on with one months notice. Believe me its no fun, whats a girl to do (legally)?

But prices aren't going up and up. They've been falling for 11 consecutive months, so there isn't any rush. Wait till the Autumn, when full year-on-year figures emerge and you'll soon see a change in the market.

Honestly, if you buy into this scheme you'll be house locked for a long time.

purplefirth

They haven't been falling significantly, but you are right I'm sure I wont be buying into this scheme only looking at it closely. I'm the type to sit back and wait for better times, trouble is I've been waiting and waiting and it seems things are getting worse not better. I know housing has peaks and troughs but when the trough comes no doubt all those people with massive savings will be gassumping left right and centre. They have a much better system in Scotland its far more straight forward, much less evil. Place your bid and the highest wins and thats that.

I only got on my high horse because someone else said why should tax payers pay for FTBs. Its annoying because obviously I'm a tax payer and I'm paying for other people to have kids etc etc rant rant blah blah.

Anyway I shall carry on sitting back as suggested and hoping for the best...what else can I do, cheers.

Joe_Bloggs

The Chancellors statement was just a rehash/publicity boost to what was going on already with existing housing association tenants and key workers who applied to them. This mainly applied to property bubble areas for the key workers.

There are probably 400,000 prospective first time buyers. This initiative/ scheme if it exists, will only help a small fraction those in need.

Perhaps those in need of housing should register, in protest, rather in expectation of any assistance, to their local council or nearby housing associations. This excess registration may create activity amongst psephologists who have the ear of those in power.

The alleged future supply of land for the starved housing market is to be addressed sometime, somewhere, in the near future, allegedly.

Housing is the domain of the ODPM et al.
J_B. ( Only my thoughts. )

purplefirth

Perhaps those in need of housing should register, in protest, rather in expectation of any assistance, to their local council or nearby housing associations. This excess registration may create activity amongst psephologists who have the ear of those in power.

Have done this, thanks Joe. Not expecting 'assistance' but like I said before I pay my taxes just like anyone else who works that is, in view of that, why shouldn't I receive help the same as all those single parents and families with children. No-one has told people to stop having kids cos they can't afford it on the contrary you are encouraged given a down payment and money each week to support them. If you come into this country without work you are given a house and money to live on. If you come out of prison you are given a house. I'm paying for it all. If I wasn't then perhaps I would have enough money saved for a down payment of my own and a decent enough salary whereby I could also have a mortgage. As it stands even though I do 45 hours a week I still can't earn enough to get anymore than £100,000 and thats 2 of us maxed out.

Unfortunately I realise this scheme isn't going to help me but I can see UK property going the same way India has whereby the only property you are ever likely to own will be your parents when they pass on and even then unless you can trust your siblings not to sell the house from under you the govt take a big old whack of that too.

There doesn't appear to be a solution available, no wonder so many young girls get themselves pregnant, tragically it seems to be the only option available to UK citizens who aren't earning terrific salaries.

meanmachine_2

It is a national scandal, and one encouraged by the Labour government.

This spurious feeling of wealth that home owners have has been fostered in order to get Labour back into power.

Except now, it's finally coming to an end. The high streets are empty and jobs are on the line.

And of course the govt will throw money at you if you drop a sprog. This country desperately needs people to pay for our pensions when we retire.

Although at this rate, the retirement age will be at 100+, and the govt will never have to shell out.