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First Time Buyer Help Urged

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The Association of Mortgage Intermediaries (AMI) has called for further Government action to help first time buyers after the Bank of England’s decision to keep interest rates on hold at 0.5 per cent for the third consecutive month.

According to the trade body, what it calls an artificially low rate of interest will have to rise at some point in the future to more closely reflect the true cost of money and the returns required by investors.

Its concern remains that many potential first time buyers are being frozen out of the housing market by the lack of available mortgage.

love it, we need 1st buyers to access mortages however we know rates are going up but we'll worry about that later.

http://www.moneyfacts.co.uk/Article/57824/...help-urged.aspx

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"has called for further Government action to help first time buyer"

Astonishing stupidity. Inaction is required to let the market correct itselt. The latest expenses/election has been great to ensure the government does absolutely nothing about the housing market.

Falling prices is the best possible helps for FTBs.

VMR.

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We can help FTB by having lower house prices.

Agreed. With FTB's paying less for their housing they can spend more on other aspects of economic activity, from buying goods and services to actually investing in British industry, leading to a healthy balanced diverse economy.

The HPI frenzy has sucked funds out of other areas of the economy turning it into a one trick pony that's now gone lame.

This failure has been caused by severe imbalances that have crept into every nook and cranny of British culture.

The insidious culture of consensus that developed in the UK over the last ten years has left no room to accomodate independent thinking and contrary points of view.

Result? Groupthink that has lead the country lemming-like right to the edge of the precipice.

Cure? Never agree for the sake of harmony. Stand up and tell people when they are wrong.

Edited by Dave Spart

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Agreed. With FTB's paying less for their housing they can spend more on other aspects of economic activity, from buying goods and services to actually investing in British industry, leading to a healthy balanced diverse economy.

The HPI frenzy has sucked funds out of other areas of the economy turning it into a one trick pony that's now gone lame.

This failure has been caused by severe imbalances that have crept into every nook and cranny of British culture.

The insidious culture of consensus that developed in the UK over the last ten years has left no room to accomodate independent thinking and contrary points of view.

Result? Groupthink that has lead the country lemming-like right to the edge of the precipice.

Cure? Never agree for the sake of harmony. Stand up and tell people when they are wrong.

Too right....

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Astonishing stupidity. Inaction is required to let the market correct itselt. The latest expenses/election has been great to ensure the government does absolutely nothing about the housing market.

Falling prices is the best possible helps for FTBs.

VMR.

Couldn't have put it better myself! :rolleyes:

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FTBs will be fine, its the Second Time Buyers trapped in negative equity with 125% Together mortgages who will need help.

I agree, but only if they remain being savers rather than FTBer!

But second time buyers even without 125% products will be hit.

- A FTB who bought at peak with a 15% deposit will be in negative equity by now

- Someone who bought at peak with a 40% deposit would now only have around 15% left. Fine if they are happy to stay in put but not ideal if they want to buy a bigger place.

- Even those who bought a while back can be trapped eg imagine FTB who bought 2 bedroom flat in London with 15% deposit in 2003 for £225k. Mortgage of £190k, say 5 x £38k salary. Flat can now be sold say for £205k or if they are lucky £225k. Yes, selling would would not result in negative equity, but not enough equity to move up, and unless big payrises since 2003 will not be able to borrow £190k so easily. Cannot move up so trapped as well!

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Ok, they "Help" 5000 FTBs on the ladder.

that leaves 100,000 FTBS still unable to climb abord as the helped ones have been able to outbid.

simples. help none, prices will fall and they ALL have a chance.

Its the Meerkat at work.

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Astonishing stupidity. Inaction is required to let the market correct itselt. The latest expenses/election has been great to ensure the government does absolutely nothing about the housing market.

Falling prices is the best possible helps for FTBs.

VMR.

Yes.

But if I were being stupid, I would point out that BoE rate is at 0.5%, and ask why lenders were not helping FTBs by lending at this rate.

Then I might ask if they were rapacious scum.

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Yes.

But if I were being stupid, I would point out that BoE rate is at 0.5%, and ask why lenders were not helping FTBs by lending at this rate.

Then I might ask if they were rapacious scum.

The media ramping going on at the moment is deeply insulting. As I have always said, the VIs are going to stop at NOTHING to try and keep the Ponzi scam running. They will eat their babies if they have to.....

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