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Are we that desperate to get on the housing "ladder"?

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    Are we that desperate to get on the housing "ladder"?

    Money MOT: new 100pc mortgage deal - Telegraph

    Bath Building Society is now offering 100pc mortgages to first-time buyers – the only catch is that the society will put a charge on the parents' home.

    To qualify for the deal parents have to have enough equity in their own property to cover 25pc of the purchase price of their child's first home.

    So, who would put their own home on the line so their sprogs can get that £500K bedsit above the kebab shop?

    #2
    Originally posted by DimPrawn View Post
    Money MOT: new 100pc mortgage deal - Telegraph




    So, who would put their own home on the line so their sprogs can get that £500K bedsit above the kebab shop?
    So basically they are saying they think houses are 25 % over valued and they want to cover themselves when the inevitable crash happens.

    Comment


      #3
      Loads of parents guarantee loans/mortgages and stump up the deposit for their kids as a gift/loan anyway. Isn't this just a new take on that?
      Originally posted by MaryPoppins
      I'd still not breastfeed a nazi
      Originally posted by vetran
      Urine is quite nourishing

      Comment


        #4
        Originally posted by d000hg View Post
        Loads of parents guarantee loans/mortgages and stump up the deposit for their kids as a gift/loan anyway. Isn't this just a new take on that?
        Not quite.

        If you give your kids a 25% deposit as a gift, the most you can lose is that cash amount if they decide they can't/won't pay the mortgage any more.

        If you let this BS put a charge on your home, they will kick you out, sell it quick at a much reduced price, take the 25% deposit and then leave you and your kids homeless.

        Comment


          #5
          erm yes it does appear that this is to try and let those parents who cannot afford to give their kids a boost to get on the housing ladder a chance to do that...

          very dangerous as in effect it is back to letting people borrow what they cannot realistically afford to pay back.

          Comment


            #6
            That is nasty.

            Comment


              #7
              I may be in the minority, but i have no interest in buying a house, even though i could easily afford it.

              My rent and living costs come to £450 a month, i live in a modern house within a 5 minute walk to the station, and live away depending on the clientco. I am not in a serious relationship, and have no interest in having children. There is so much pressure on people to buy a house, i have seen friends buy houses, rent out their spare rooms to strangers and it ends up costing them more money than it would be to rent a room privately.

              I am more than happy building up a money pile, and when the inevitable crash does happen, i can buy somewhere with a large deposit if i want to.

              Comment


                #8
                Originally posted by minestrone View Post
                That is nasty.
                Anything to keep the market moving upwards.

                The inability to accept that house prices need to fall will eventually destroy our economy.
                merely at clientco for the entertainment

                Comment


                  #9
                  And that charge/risk will hang over you for as long as your childs mortgage term, so you might be well into retirement and suddenly you're homeless with little chance of getting back into financial security.

                  However, since Kirsty and (the bankrupt) Phil keep telling us we must buy "quiiick" I'm sure it's the very sensible thing to do.

                  Comment


                    #10
                    Originally posted by original PM View Post
                    erm yes it does appear that this is to try and let those parents who cannot afford to give their kids a boost to get on the housing ladder a chance to do that...

                    very dangerous as in effect it is back to letting people borrow what they cannot realistically afford to pay back.
                    It really should be outlawed. It's not doing anyone any favours artificially propping up the market, and has the potential to cause a lot of misery. You can't stop parents giving their kids a pile of cash to use as a deposit, but that's different.

                    You'd have to really dislike your parents to take them up on this sort of thing. I never could.
                    Will work inside IR35. Or for food.

                    Comment

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