Thursday, Apr 23, 2009
I thought we'd seen the end of articles like these
Times: How to get your first mortgage
If you are unable to obtain a mortgage on your own income, the obvious solution is to turn to the Bank of Mum and Dad, to help out with the deposit or to act as guarantors. If they are prepared to be guarantors, their income will be taken into account when deciding how much you can borrow. If your parents cannot help, you could buy with friends. “Some lenders will take the incomes of up to four friends into account when deciding how big a mortgage to give you.
Posted by little professor @ 10:34 PM (644 views) Add Comment
5 Comments
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1. alan said...
I sometimes think these articles are aimed at Mum and Dad to "help" the children into the housing market.
The Times seems desparate to ramp up sales of houses. There is never a mention of the potential rise in interest rates from a historic low - how annoying!
2. little professor said...
June 2007:
Nearly half of first-time buyers under 30 are getting financial help from relatives in order to get on to the property ladder, new figures have revealed.
Soaring house prices have led to the "bank of mum and dad" providing housing deposits or standing as guarantor so that adult offspring can buy a first home, according to the Council of Mortgage Lenders (CML).
Their figures showed that 46 per cent of first-time buyers under 30 were getting "substantial" financial help from relatives, compared with just 10 per cent in 1995.
A typical home now costs about seven times the average annual earnings, putting property far out of the reach of many young people who are already struggling with student debt.
Parents in Northern Ireland were most likely to help their children to buy a home, with 48 per cent of first-time buyers there receiving some financial assistance.
The CML said "The growing tendency for parents and other relatives to help young people become homeowners looks likely to sustain the number of first-time buyers for the foreseeable future."
3. timmy t said...
Just save til this recession is over, by which time house prices will be so low you won't need one!
4. paul said...
Appalling self-interested bias on any number of levels. This is journalistic license at its worst.
5. hash browne said...
"...but 45 per cent fewer than took out home loans in February last year. This is not so much an indication of lack of demand from those trying to get on to the bottom rung of the property ladder but of tight lending criteria, ..."
I'm studying economics as part of a degree. I don't claim to be an 'expert' BUT one of the first things we are taught is:
Demand only exists if it is backed up by a willingness AND ABILITY to pay for the goods. The fact that people can't get a mortgage means demand does not exist from those people.
I am sick of hearing these idiots giving so-called advice. When will a 'proper' economist put these people straight? I think they need embarassing publicly to show the sheople that they are NOT 'experts'!!!!