Should They Offer 99% Mortgages?
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Do you think it's a good idea to offer 99% Mortgages?
The Government is reportedly considering it the next budget to help younger people get onto the housing ladder.
I’m not really sure, I can’t see much drawbacks but i suppose there could be a worry with people’s money management.
This is just papering over the cracks though, the issue isn’t the mortgages so much as the fact that there isn’t much affordable housing available
I think houses need to be cheaper overall and Freehold not lease.Wages need to be on a par with living costs as well.Ah well.We can but dream,
MelissaLee1 house prices have gone up near me there is a 2 bed that's up for 395 thousand
Leannexxx I live in Wandsworth.Private houses are upwards of £650,000 many/most are millions! Nadine Dorries joked with Rees Mogg that they both lived on an Estate..hers was council lol.
as people are expected to work till their late 60s it would be better to increase the term of mortgages from 25 to 40 years.
It's great news.
I couldn't afford the deposit required 30 years ago.
So think it's about time
Sounds like another stupid idea where the government is guarantor on these mortgages if the value of the property goes down and people are in negative equity who might walk away so the government ends up using tax payers money and borrowing to rescue such situations. So if there is a huge housing crash tax payers have to come to the rescue.
We need to stop demolishing buildings but instead convert them into basic flats to provide an entry point for people to get their own homes, yes these homes won't be great but there are 50,000 buildings demolished each year and a sizeable percentage are completely safe and easily re-purposed at a fairly low cost. We should make it much more difficult to demolish strong re-useable buildings. Better to have 100,000 basic flats than 2,000 great flats where a tiny amount of people get homes. The government spends about £50 billion a year subsidising rents to private landlords this is a ridiculous amount of money and shows the utter incompetence of conservatives who sold off council housing stock cheaply and then were forced to pay private landlord rents because they couldn't supply council houses anymore. It's not hard to work out that £50 billion is around £2k from every working person in the UK every year going into the hands of private landlords. It's just economic madness.
With interest rates creeping up it would be difficult for some to budget let alone the costs setting up a new home as well.
I can't believe that they are contemplating this, it's seems like absolute madness to me. I remember when I had my first house and interest rates went up to about 16% which almost crippled us. Imagine that high interest on a 99% mortgage!
Considering many 2 bed properties are £1200-£1800 a month in my area but mortgages can be £500-£1000 a month. It would be highly welcomed!
A friend lent us the deposit once, as you tend to need 30k+ to even think about looking, but they questioned where the big chuck of money came from and as we were honest, they declined us.
We practically paid off our last rental property for the owner, after working out how much we had paid over the years, they even stopped fixing things and I do believe it contributed to some long term health issues I now have. They wanted to sell up after we paid off their property, so we were left looking for somewhere when the market was rife and had to move out of our town and take whatever property was available, meaning our friends are now sadly having to care for my elderly animals as I wasn't giving them up.
We are a couple who can not have children, meaning we'd barely get anywhere on the council list, but private rentals often don't allow animals... children but not animals. Animals help me mentally, so it can be a bit of a struggle.
Even if we were to get on the ladder for less of a deposit, you often need a guarantor and I don't have much family, I couldn't ask a friend that is a big ask and my parents wouldn't do it, they've already said it's not something they would ever do.
I completely understand why they no longer offer 100% deposits as some people aren't that great with their money. But there are some people like us that are STUCK in the cycle. We can't move to a cheaper area either, as my partner's job is keeping us mainly going and it isn't a job where he could work from home constantly either, as we had considered moving.
DeBunny The reason they don't offer 100% mortgages is if the value of property goes down the bank is faced with huge losses as the buyer can just walk away if in negative equity. The deposit is basically a safety net for the bank so there is some value in the property if the buyer walks away plus of course it helps the buyer who has already paid a chunk of the property costs and shows the buyer can save money. It's a good system for all. If we go to 100% mortgages there will be a cost to someone it could be the bank which effectively means other bank users. Do we want to shift an extra 2% costs on all mortgages so some people can have 100% mortgages?
My sister bought a studio flat as her first property which was pretty much just a bedroom with a small section as a kitchen and a bathroom with just a shower. Basic small property which she paid if I remember rightly about £13k many years ago. Really this is the accommodation the government should be supplying which could be achieved with re-purposed buildings. A bit like the soviet era flats you see in Russia and many iron curtain countries the minimum size you can practically live in.
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