Post Office To Offer 'super-Size' Mortgages To First-Time Buyers With Only A 10% Deposit

[Alfie Moon]

Debate is hotting up on the DM website amongst the Readers - see:

http://www.dailymail.co.uk/news/article-1261406/Post-Office-set-offer-super-size-mortgages-people-10-deposit.html

We need a few more HPC'ers to contribute readers comments and push the awareness raising about the Buyers Strike.

The DM website is read by a very large audience so this is a very effective way to reach a large audience and to spread the word.

[Executive Sadman]

If they didnt go to university, only to get a mickey mouse degree, followed by a job in Burger King, and tens of thousands in debt they would be able to easily save 10% over 3 or 4 years (even at todays inflated prices) and probably get a mortgage before they would have left university. Not necessarily advisable, but certainly possible.

[Neil B]

OK...while everyone is flapping about 'propping prices up' etc lets have a reality check:

1. The multiples of income are back down to pre-2000 levels, i.e. around 3-5x your salary with existing depts taken into consideration.

2. IO mortgages are gone never to return.

3. 1 and 2 equate to very few people qualifying for a mortgage at the current asking prices.

The market is dead. There are hardly any sales. Prices can double and there will be less sales (i.e. None). Forget what has happened over the last 10 years - those days of easy credit causing HPI are gone. That was when there was an active market.

[Tonkers]

Hand out large loans on a falling asset! That will save the Post Office! Hooray!

[billybong]

Post Offices will start offering controversial 'super-size' mortgages

Super-sizing with the attempted consequence for the housing market being continued bloating obesity. These days there should be a health warning given with mortgages.

Edited March 29, 2010 by billybong

[BlueRat]

I'm not so sure about this idea of a Buyers Strike. Yes, as a fully signed up HPCer I am personally on a Buyers Strike but I fear there is no shortage of fools out there that will buy no matter what if they are lent the money. You only have to look at the MoneySavingExpert site thread on the Stamp Duty reduction, when it was pointed out that this paltry 1% reduction is neither here nor there on the price of a house, and it's merely a marketing gimmick by the government to try to manipulate the market and the person gets attacked left right and centre by idiots saying this 1% will make all the difference and the they're just a 'hater' (to use the yute vernacular) on them for 'getting on the ladder'.

[Dorkins]

Or more likely need about an 8 grand sum to put a deposit on a flat.

Unless they live up north eg somewhere like Stoke or Hull or Middlesborough then its a 6 grand sum to put a deposit on a house.

Plenty of people will access that one way or another.

8 grand is about a year's rent for most under 30s, and maybe a year or two's savings for a fairly dedicated saver. It's certainly not some trifling sum.

[Alfie Moon]

I'm not so sure about this idea of a Buyers Strike. Yes, as a fully signed up HPCer I am personally on a Buyers Strike but I fear there is no shortage of fools out there that will buy no matter what if they are lent the money. You only have to look at the MoneySavingExpert site thread on the Stamp Duty reduction, when it was pointed out that this paltry 1% reduction is neither here nor there on the price of a house, and it's merely a marketing gimmick by the government to try to manipulate the market and the person gets attacked left right and centre by idiots saying this 1% will make all the difference and the they're just a 'hater' (to use the yute vernacular) on them for 'getting on the ladder'.

I would point out, in response to your comments, that the idea/concept of a Buyers Strike has been getting a lot of very positive support and response on the national and local newspaper websites I have seen mention of it - indeed over the last 4 months or so the majority of response has been supportive with some negative and challenging comments coming from very obvious Estate Agents, BTL'ers, people with a property on the market ...

The idea of the Buyers Strike is of it being descriptive of what has been happening in the UK property market in terms of the collapse in demand since Autumn 2007 rather than it necessarily being a social movement(although it m,ay begin to take on some of those aspects as awareness spreads). The collapse in property sales and what is IN EFFECT a Buyers Strike has not had the media coverage that it should do. By pushing awareness raising about the Buyers Strike in readers comments people are becoming more aware of the dynamics of the property market and it certainly generates a fair bit of debate, as well as making people feel less isolated in their decision (whether through choice or whether by force due to the financials circumstances) to not participate in the UK property market. Realistically speaking it can't be expected that the idea will always get an overwhemingly positive response - however, having said that I would say that it has had a positive response in the vast majority of instances.

Edited March 29, 2010 by Alfie Moon

[Goat]

Or more likely need about an 8 grand sum to put a deposit on a flat.

Unless they live up north eg somewhere like Stoke or Hull or Middlesborough then its a 6 grand sum to put a deposit on a house.

Plenty of people will access that one way or another.

More like £18,000 in my area.

[billybong]

It was startling the way the media jumped onto the idea of a buyers "strike" and started to use the expression themselves so eagerly.

It'll probably just be a convenient and dramatic sound bite that they've latched onto and maybe there aren't any sound bites without the negative connotion of strikes which are usually temporary by nature and often to be won over by a bit of negotiation, persuasion and inducement (a bit off stamp duty anyone).

Can a buyers "strike" last several years and will they still be saying it's a buyers "strike" in a few years time or will they have found another sound bite by then - I suppose it's possible

Edited March 30, 2010 by billybong

[bomberbrown]

I'm not so sure about this idea of a Buyers Strike. Yes, as a fully signed up HPCer I am personally on a Buyers Strike but I fear there is no shortage of fools out there that will buy no matter what if they are lent the money. You only have to look at the MoneySavingExpert site thread on the Stamp Duty reduction, when it was pointed out that this paltry 1% reduction is neither here nor there on the price of a house, and it's merely a marketing gimmick by the government to try to manipulate the market and the person gets attacked left right and centre by idiots saying this 1% will make all the difference and the they're just a 'hater' (to use the yute vernacular) on them for 'getting on the ladder'.

From that MSE link:

Got my confirmation through on the weekend that I'm exempt from stamp duty, woo!

I know it's nothing to mbga, but to me that's a damn nice TV and sound system now paid for - thanks Mr Darling

This country is full of shortsighted economic illiterates. We're fvcked!

[Mega]

http://www.dailymail.co.uk/news/article-1261406/Post-Office-set-offer-super-size-mortgages-people-10-deposit.html

I know what he say:- "The Market is trying to correct itself, its not a lack of lending but there is too much of it".

"They" have decied that house prices will NOT correct, "They" will do EVERYTHING & ANYTHING to stop it from happening....................

Only a collasped £ would cause them to stop & think.

Mike

[JMcLane]

Hello, Maiden post.

Buyers Strike, Add me

And I posted in the comments

I am sat here with my hard saved 40K, I never used credit cards not took loans nor took an oversize mortgage and feel sick at

a) buying a home (i mean HOME) at such stupidly high prices

buying a home and propping up this soon to falter housing market

So I have decided to join in on the much spoken about "buyers strike" until some sanity resumes. I read HPC alot and they will appreciate support.

The government are secretly propping up the house market with YOUR taxes (mine included along with the waste that is renting) under false reasoning.

What we all need to ask ourselves is Why did Gordon Brown sell out our Gold reserves to help some hedge/trade/fail at Goldmans?

I dont expect the Lame stream media to be telling you what you should really know as they probably have a high mortgage and dont want to suffer the housing armegeddon nor be the first to utter it.

Dont be a fool and join the buyers strike, sellers will soon start to see the reality.

- J McLane, Watford, UK, 30/3/2010 1:11

So please do Vote me upto the front page

Ive been reading here anon... I feel compelled to join today.

[Patfig]

I suspect he placed a small deposit.

How rude

[AskFrank]

Hello, Maiden post.

Buyers Strike, Add me

And I posted in the comments

I am sat here with my hard saved 40K, I never used credit cards not took loans nor took an oversize mortgage and feel sick at

a) buying a home (i mean HOME) at such stupidly high prices

buying a home and propping up this soon to falter housing market

So I have decided to join in on the much spoken about "buyers strike" until some sanity resumes. I read HPC alot and they will appreciate support.

The government are secretly propping up the house market with YOUR taxes (mine included along with the waste that is renting) under false reasoning.

What we all need to ask ourselves is Why did Gordon Brown sell out our Gold reserves to help some hedge/trade/fail at Goldmans?

I dont expect the Lame stream media to be telling you what you should really know as they probably have a high mortgage and dont want to suffer the housing armegeddon nor be the first to utter it.

Dont be a fool and join the buyers strike, sellers will soon start to see the reality.

- J McLane, Watford, UK, 30/3/2010 1:11

So please do Vote me upto the front page

Ive been reading here anon... I feel compelled to join today.

Great post! We need to get posts like this on every article about housing. EAs and the government have brainwashed this country into thinking property prices can only rise, well HPC'rs it's time to get our message heard and make the public aware of the pure facts!

[bomberbrown]

Hello, Maiden post.

<snip>

The government are secretly propping up the house market with YOUR taxes (mine included along with the waste that is renting) under false reasoning.

Hello and welcome to HPC JMcLane. Agree with the main jist of your post, except for the bit above.

I, and you'll find many other posters on HPC, don't regard the money going on rent as a 'waste'. Invariably, with current high house prices the cost of renting is half the cost of servicing an IO mortgage on an equivalent place to live.

With zero maintainance fees and the ability to up sticks at a moments notice, it really is a no brainer to rent at the moment.