Government unveils cheap mortgage plan for First Time Buyers

nelly_2

In order to pay for this scheme the government will need more money. Where will that come from? more taxes. So by time you pay the rental part and the tax increase you will be in the exact same place...... skintsville!

LyndaG_2

You know for your first time buyers out there you can already (subject to income) get a shared ownership property. All you need to do is goto local council office and ask who provides the shared ownership in the area you wish to live (people misbelieve that this service is only available to key workers and only in London). Normally you have to be living in the area, or working in the area, eg if you work in Hillingdon and live in Harrow you can apply to both local councils, but you couldn't apply to say Islington.
Shared ownership can mean that you can get a flat/house out of your current reach there is a cap on max income, but most "single" or low income families/couples will be entitled. There is sometimes a waiting list and if you are an existing housing association tennent or a council tennant or private tennant or living with parents you should be entitled to apply. You have to be able to get a mortgage so the usual things apply about your credit histroy etc...I can't remember the cap on the income it might vary by area/council/housing association.
More info is on the Housing Corporation website. Instead of the government giving you a loan, a housing assocation owns part of the property which you pay rent on. So say you own 30% and pay rent on 70% you can then year by year buy more of the property, as you are renting part of the property it means you don't need the deposit as you aren't borrowing the full value of the property. You still need to pay your fees, I think some of the housing associations may give you guidelines about how much fees or they may ask you to have some deposit, but nothing like 5% of overall value.
The housing associations are governed by the Housing Corp and the property has to be of a certain quality etc...
If you were to sell they will always buy back your share, so you are always going to be safer in theory.
Also if you see a new build being developed near you and you want to get on the property ladder if you speak to the builders sales office they will be able to tell you who the housing association for the % of housing association/social housing is being run by. The gov changed something a few years ago and planning permission seeked after this time was subject to a % being housing association/social housing. Sorry I can't remember the %.
hope this helps potential first time buyers, good luck.

Lynda

meanmachine_2

Thanks for that Lynda,

But it's all just part of the big government con to keep massively inflated prices at their current levels. Personally I'd say leave WELL alone and let the market correct.

purplefirth

Have to agree with mmachine on that. The only thing any of us FTB can do is strike and refuse to purchase until govt stops conning and starts correcting. Perhaps we should all march on parliament and demand houses for tax paying citizens!!

LyndaG_2

Machine & Purple

You know you can put yourselfs down for housing association rentals as well so you might save money on rent costs..... same method goto local council offices..... its not just for families or vunerable people joe public can apply/go on list for cheaper rental by using a housing association, also as they are social landlords regulated by housing corp still so no more troublesome landlords taking forever to get problems fixed for you.

We only managed to buy last year that was done by living at home for a year not going out not doing anything and saving and saving agree the prices are ridiculous and ftb keep the market floating we um'd and ar'd but decided we wanted our own place........

good luck with the protest, i think it is the buy to lets that have ruined the market myself as they have bought the bottom end of the market properties and there is so little affordable property around now as a result .....

Joe_Bloggs

First Time Buyers have done this already ! Perhaps the whole mess was started by Government intervention into pension schemes? Money then flowed, by equity owners, into the buy to let market bypassing a falling stock market that failed pension schemes.
If the housing economy starts a nose dive, worse than any other sector, then equity held in housing will perish and houses will be affordable if you still have a job! You still have the population that suffered from the change to take care of.

The economy is just an expression of the emotions of the people. Manage it if you can or let emotive wordwide market forces, swing it to and fro.
J_B( In complete ignorance.)

purplefirth

Thanks Lynda

Many years ago I did put myself down for housing at the time I was living in a flat that had no running water (goint to the local pub for the loo) and bare floor boards. I was working full time but my father's job location changed which meant they had to move and sell up. As a result basically I was homeless, a kind friend said I could move into one of his properties temporarily until I could get something sorted out. The housing officer told me the best thing I could do (back in 1991) was to get pregnant, that would be the only way in for someone in my circumstances and guess what...she wan't wrong. Naturally I was horrified and am glad to say still childless but I can see why girls go that way especially now seeing as you are bribed to have children these days with the promise of free cash and accomodation.

Joe, I don't know where you get some of your cliche's from but come on. 'The economy is just an expression of the emotions of the people'. What on earth does that mean????? From where I'm standing the rich are sitting pretty, the middle class over the age of 35 are relieved and the rest of us are suffering badly. Everyone knows the housing market swings dramatically one way and then the other. Trouble being is the amount of time its taking to move.

Joe_Bloggs

Fear and Greed ! These are market forces. Terror, or the fear of it has influenced things recently. I'm glad you think my words are some rehashed tripe. Research things for yourself. Understand what makes people tick. Don't beleive what anyone says but look into what makes them say what they say.
No doubt that that was another cliche episode !
J_B.

meanmachine_2

Joe_Bloggs wrote:

Fear and Greed ! These are market forces. Terror, or the fear of it has influenced things recently. I'm glad you think my words are some rehashed tripe. Research things for yourself. Understand what makes people tick. Don't beleive what anyone says but look into what makes them say what they say.
No doubt that that was another cliche episode !
J_B.

I *think* he means that fear has compelled people to jump on the ladder, even at prices that they *know* are well beyond their means.

Happily, with prices flat, I no longer have this fear, although I was a suffer until about the middle of last year and was looking to buy any old crap.

I did a little research, looked at a lot of graphs, including affordability and realised that anyone who bought in the last 1-2 yuears has done so not out of logic, but fear and will suffer for many years to come.

Now I'm sanguine and happy to wait for a different type of fear - that of neg equity to take the market in the other direction.

People are sheep. You just have to dare to go against the herd.

The BEST time to buy a house was in 1994, when all your mates and relatives would have been telling you not to buy.

The best time to buy again will be when these same people are telling you the same thing.

purplefirth

Ha ha JB, you do make me laugh. Don't get upset, I just prefer straightforwardness to cleverness. Have trouble understanding poetry. Anyway I wasn't trying to insult you just understand what you meant. All I'm doing is trying to find a solution and confirmation (with a little help from the chat forum) to what to do re the mortgage plan and the black hole that is FTB property purchasing.