now we probably did this at last budget but i wasnt interested then.

if im reading into this right as of march 24th it basically allows statistically the most vunerable people to get a huge debt in a declining market on (at least in aberdeen) a ropey* brand new property at from what i can see compared to paying fully out of my pocket an inflated price (when compared to non qualifying properties

unless im wrong with that youd need your head looking at before you bought on that scheme.

not that it affects me in any way i just fail to see the point – only folk benifiting are the builders and the government not the FTB!

*one of the approved builders on the scheme in aberdeen built a block of flats with a kitchen floor incapible of supporting more than 4 folk – and put signs up in the remaining flats after the floor collapsed at a party)

You are reading that right.

Lots and lots of folks with no cash jumping on that bandwagon too. They have years and years to regret it, though.

it’s aimed at supporting the developers, with the political spin being that it meets a social housing need too.

it’s a not a great deal, but is the governments attempt at plugging a big hole with their little finger.

the most vunerable people to get a huge debt in a declining market

We need a name for them, how about ‘sub prime’?

Isn’t Sub Prime a character out of the S&M remake of the Transformers movie?

Who supplies the mortgages for those people?

Who supplies the mortgages for those people?

I think the developers end up paying cash into some sort of central, government managed “risk fund” which goes to the banks in the event that someone defaults on their mortgage and the bank can’t recover the total value of their charge.

Basically to top up any shortfall the banks are exposed to, but it’s still the banks that provide the mortgages.

I haven’t checked the full details though, that’s just from memory so I could be wrong.

really cant be that hard to get a mortgage.

my mate got one last week it would seem and he has a very chequered history – aged 25 – bankrupt at 22 ….

really cant be that hard to get a mortgage.

my mate got one last week it would seem and he has a very chequered history – aged 25 – bankrupt at 22 ….

Provided you have a decent debt/equity ratio, and you are prepared to take a rate which is maybe a bit high, then yes, it’s not that hard to get a mortgage.

As a side point. I can’t get my head around credit card companies. I use a Barclaycard to pay for things like group flights and hotels when organising trips etc, or for using abroad or on business. My credit limit is shocking, they just keep putting it up for no reason at all. It works out at over 50% of my net annual salary!

How their risk profile can give someone the ability to spank 50% of their salary on a CC in one purchase just defies all logic. I could buy a rubbish house in Middlesbrough with a credit card. Maybe I could even do a balance transfer and end up with a 0% “mortgage” ha ha!!!!!

We don’t learn from our mistakes, we just go on repeating them…

What can we do to try to jump-start a housing market that was bombed by the granting of mortages to people who should never have got mortages? Get the state to gaurantee loans to the sub-prime!

We know how this will end…

“Provided you have a decent debt/equity ratio”

he doesnt …. but he does have a crazy rate like you say – almost double what im looking at

“What can we do to try to jump-start a housing market that was bombed by the granting of mortages to people who should never have got mortages? Get the state to gaurantee loans to the sub-prime!”

you are mystic meg and i claim my £5

It was Chalky White of the Daily Mirror way back in the 70’s. Supposedly he was skulking in various seaside towns and if you spotted him you could win £5. Kids approaching strange men for money… it wouldn’t happen now…

There are lots of these schemes aimed at getting people on to the housing ladder. You have part rent part buys, shared equity, large deposit paid for you etc. The one thing that I can see that they have in common is the property is hugely over priced to start with so any discount or help that you are getting comes from the Bull Sh!t value put on these properties.

And no one stops to ask that if you can’t afford the mortage now, however it is sliced with shared equity, how are you going to afford it in the future?…

exactly – guess i just feel cheated that ive worked hard to get my house deposit together.

my mate on the other hand decided 2 weeks ago since his landlord was kicking him out that he wanted to buy a house and within a week hes managed to get a house and a mortgage on a very minimal deposit with a bad history. (then gloated about how quick and easy it was at the weekend to me and the mrs who have been looking for about 6 months now )