The return of mortgages with 5% deposits!

SpiderLegs

demontfort said:

SpiderLegs said:

demontfort said:

clueless_but_curious said:

demontfort said:

MattMattMattUK said:

MWT said:

Paired with the end of the SDLT holiday I'd hope it simply softens the impact of that rather than drives prices higher over-all.

It would make far more sense to abolish SDLT, it is a bad tax on all levels. 

That's a simplistic view parroted by the economically illiterate Daily Telegraph. It's a valuable source of government revenue and acts as a brake on house prices both of which we can all agree are desperately needed. Every time you cut stamp duty or extend this daft holiday all you do is push up house prices. As an example I bought my 2 bed flat for £240k in 2013 just before they abolished the SDLT slab system, back then no sellers dared to price 2  beds in the area above £250k as above this point buyers would pay 3% on the full purchase price. But when the then chancellor Genius George scrapped the slab, suddenly  2 beds in my area all started repricing at £270k, £280k or above. So the lucky buyers saved a few thousand on the stamp but shelled out 30k to 50k extra on a flat.....nice one George.

Who is complaining?  Probably nobody because the FTB is able to get on the ladder without waiting for years to save up, and homeowner has a bit more equity

But everyone else is subsidising FTB getting on the ladder and the government is indirectly pouring money into the builder's coffers through H2B, Persimmon paid their former CEO a £76m bonus 3 years ago thanks to H2B. Meanwhile the government will have to cutback  services even more in the coming years and raise taxes for you and me. Maybe then you won't feel so generous towards FTBs.

House sales operate in chains. If there are less FTBers then there are less potential sales overall. This is not really a difficult concept to grasp.

"there are less potential sales overall" and why is that of any concern?

Erm, generally speaking, shrinking your economic activity isn’t the best approach. Perhaps review the last twelve months if you need further guidance.

Thrugelmir

Yet to see the fall out from the suspension of tenant evictions either. The full extent of the damage is yet to be revealed. 

demontfort

Thrugelmir said:

demontfort said:

clueless_but_curious said:

demontfort said:

I don't buy the line about this helping the economy, the housing markets ticks along very nicely by itself, people will always but and sell houses and all these schemes do is push up prices further saddling first time buyers with more mortgage debt. The town where I live has allowed builders to churn up acres of productive farmland to build 6000 overpriced cramped houses (subsidised by H2B) putting more traffic on the roads, more people at the station and more people using the hospital yet  the town centre continue to rot away and you have homeless people sleeping in doorways.

The stamp duty cuts and Help to Buy favour the better off, I'd much rather my taxpayer dollars were spent on foreign aid, helping homeless people or rehousing families stuck in rundown B&Bs. The government is here to provide public services and to help the needy not to provide bungs to buyers and prop up the housing market. So if a first time buyer is struggling to afford a house then I don't care and the government should not get involved.

The point is that banks are lending at higher rates for high LTVs (which is predominantly FTB's), and those rates are so high that affordability becomes an issue.  Others have articulated that high credit scoring is also a requirement.  If there are less buyers in the market, house prices will go down.  Simple simply vs demand economics.  This is to prevent prices dipping.  
Stamp duty cuts benefit anyone buying land and buildings
I don't know how you can support HTB being specifically for 'the better off'
You seem to be a gloomy liberal 

On the fairness front why should i as a taxpayer subsidise high risk loans to FTBs who aren't yet in a financial position to buy, 

That's the danger of holding a fixed viewpoint. The scheme hasn't even been announced yet and assumptions run riot. 

Agree I do have polarising and rigid views on this but given the government's incessant tinkering in the housing market, emergency interest rates for the last 12 years and Johnson and Jenrick being incompetent, inveterate liars I have become very cynical.

demontfort

SpiderLegs said:

demontfort said:

SpiderLegs said:

demontfort said:

clueless_but_curious said:

demontfort said:

MattMattMattUK said:

MWT said:

Paired with the end of the SDLT holiday I'd hope it simply softens the impact of that rather than drives prices higher over-all.

It would make far more sense to abolish SDLT, it is a bad tax on all levels. 

That's a simplistic view parroted by the economically illiterate Daily Telegraph. It's a valuable source of government revenue and acts as a brake on house prices both of which we can all agree are desperately needed. Every time you cut stamp duty or extend this daft holiday all you do is push up house prices. As an example I bought my 2 bed flat for £240k in 2013 just before they abolished the SDLT slab system, back then no sellers dared to price 2  beds in the area above £250k as above this point buyers would pay 3% on the full purchase price. But when the then chancellor Genius George scrapped the slab, suddenly  2 beds in my area all started repricing at £270k, £280k or above. So the lucky buyers saved a few thousand on the stamp but shelled out 30k to 50k extra on a flat.....nice one George.

Who is complaining?  Probably nobody because the FTB is able to get on the ladder without waiting for years to save up, and homeowner has a bit more equity

But everyone else is subsidising FTB getting on the ladder and the government is indirectly pouring money into the builder's coffers through H2B, Persimmon paid their former CEO a £76m bonus 3 years ago thanks to H2B. Meanwhile the government will have to cutback  services even more in the coming years and raise taxes for you and me. Maybe then you won't feel so generous towards FTBs.

House sales operate in chains. If there are less FTBers then there are less potential sales overall. This is not really a difficult concept to grasp.

"there are less potential sales overall" and why is that of any concern?

Erm, generally speaking, shrinking your economic activity isn’t the best approach. Perhaps review the last twelve months if you need further guidance.

There's other sectors of the economy such as High Street Retail and Travel which need government support far more than the housing sector and millions of peoples who have been struggling pre-covid who are far more deserving than FTBs. Plus do you really think it's wise to encourage banks to lend billions in large, high LTV mortgages to FTBs in in the middle of the recession?  Should the government indefinitely support FTB and big housebuilders? When and how will this all end? The government should leave lending to the banks who understand credit risk and following the financial crash in 2008 are naturally hesitant to lend at 95% LTV. We are repeating the same mistakes of 15 years ago but this time we are in a hard recession, house prices are even more out of sync with earnings and the taxpayers has become the lender of last resort.

James-may

Hopefully this opens up the the lenders a bit, I'd liking to buy for the first time in the next 9 months.
A 5% mortgage would let me buy in may/June rather than towards the end of the year.
Getting sick of £500 per month rent now.