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Hitachi To Offer £50,000 Loans To Parents Of Home-Buyers

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http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/8253567/Hitachi-to-offer-50000-loans-to-parents-of-home-buyers.html

Hitachi Capital is to offer loans of up to £50,000 to the parents of first-time home buyers in an innovative attempt to boost Britain's flagging housing market, The Daily Telegraph can reveal.

The financial services group has teamed up with Britain's biggest housebuilder, Barratt, to offer financial support to parents trying to help their children get on the housing ladder.

Its £1bn fund will offer 12-year unsecured loans for parents to use as part of the deposit for their child's new home.

The scheme aims to bring back to the market first-time buyers, who have been priced out by mortgage lenders requiring deposits of up to 20pc.

The average age of an unassisted first-time buyer has jumped to 37, with lenders reluctant to offer higher loan-to-value mortgages.

This has led to "the bank of mum and dad" becoming increasingly prevalent as a source of funding for deposits. However, many parents cannot afford to support their children or only do so through the remortgaging of their own home.

Excellent lets keep property prices up, if you or anyone needs a loan to make a deposit the price is too high.

Perpetual debt until you die.

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http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/8253567/Hitachi-to-offer-50000-loans-to-parents-of-home-buyers.html

Excellent lets keep property prices up, if you or anyone needs a loan to make a deposit the price is too high.

Perpetual debt until you die.

Frankly I'm just surprised that they haven't introduced multi-generational mortgages yet.. buy now, let your kids pay it off.

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The average age of an unassisted first-time buyer has jumped to 37, with lenders reluctant to offer higher loan-to-value mortgages.

Nothing to see here, move along folks.

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It part of the end game, running out of bomad candidates? - then enable new bomad candidates by offering them debt.

Unsecured loan + charging order = secured loan.

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Frankly I'm just surprised that they haven't introduced multi-generational mortgages yet.. buy now, let your kids pay it off.

Yes, I'm surprised they didn't try to do this during the boom? Perhaps there is some legal impediment - for example, maybe only a certain number of signatories on the mortgage are allowed and the children would be under no obligation to take the loan on when the parents die, potentially leaving the bank holding a depreciating asset - I'm no legal expert, just speculating.

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They are just trying to stimulate the economy

http://www.hitachi--magic--wand.com/

The Hitachi Wand Massager is world famous. For 30 years this massager has been at the forefront for a mains powered massagers The Hitachi magic wand been featured in many television programs and reviews including HBO's Sex and the City and Sexcetera. The 6 foot cord is attached to the end of the handle. The Wand provides 2 levels of vibration speeds: 5000 and 6000 rpm, that are controlled by a hand switcher located on the handle. Unlike many vibrators, the Magic Wand is plugged into a wall socket rather than using battery power. This unit measures 12.5 inches which provides a good handle with which to massage over the shoulders and against the back extending the reach of the massager without the limitation of the length of your arm. The Hitachi Magic Wand shape makes it perfect for professionals to deliver therapeutic massage without fatigue or to individuals wishing to provide gentle massage within the home.

Edited by Bloo Loo

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Yes, I'm surprised they didn't try to do this during the boom? Perhaps there is some legal impediment - for example, maybe only a certain number of signatories on the mortgage are allowed and the children would be under no obligation to take the loan on when the parents die, potentially leaving the bank holding a depreciating asset - I'm no legal expert, just speculating.

I think the problem is children aren't responsible for the debt. Those owed would have a claim on the estate to recover the debt but they can't force the children to take up repayment, clearly their needs to be a change in the law.

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I think the problem is children aren't responsible for the debt. Those owed would have a claim on the estate to recover the debt but they can't force the children to take up repayment, clearly their needs to be a change in the law.

Yes, that's what I thought. There MUST be a compelling reason they haven't done this already, because it would have give a huge one-off boost to HPI and shacked another another generation to massive debts for their lifetime. Win:win in bankerworld.

Timing a bit wrong for this kind of move at the minute though. ;)

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Hitachi probably got the idea from in Japan, where I am guessing they do this.

Its sort of interesting it is 'unsecured' loan on the parents?

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All this because some genius in a dark room realised that the Bank of Mum and Dad is bankrupt as property prices are no longer rising.

No more MEW, no more deposit-gift for their kids, no more HPI.

What could possibly go wrong with lending £50k to a boomer with a house which value is plummeting?

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surely a loan to cover the "deposit" means this is a way to get 100% mortgages.

and 50K over 12 years at an unsecured rate would be around £530 per month.

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It's traditional: rich parents want to pass on their wealth.

With the world heading back towards an era of wealth determined by property ownership, loans to parents serve to add liquidity to intergenerational wealth transfer.

In other words, bring forward an inheritance to when the children need it, without depriving the parents during their lifetime.

Come to think of it, this fits the same trend as The Liar's promotion of religion. The impetus for social and economic mobility, the ability to improve your lot by talent and hard work, came with the decline of religion and the rise of secular values. We've had a decade of attempting to reverse as much as possible of that.

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All this because some genius in a dark room realised that the Bank of Mum and Dad is bankrupt as property prices are no longer rising.

No more MEW, no more deposit-gift for their kids, no more HPI.

What could possibly go wrong with lending £50k to a boomer with a house which value is plummeting?

Who cares once the paperwork is signed do I get my bonus?

Perhaps these loans could be rolled up and sold on to pension funds?

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Who cares once the paperwork is signed do I get my bonus?

Perhaps these loans could be rolled up and sold on to pension funds?

You should work in finance with these ideas! And I would imagine yes, yes pension funds would be interested.

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Who cares once the paperwork is signed do I get my bonus?

Perhaps these loans could be rolled up and sold on to pension funds?

Think BIG old chap.

Create a multi-floor bond out of these loans, get AAA ratings for them and sell em whilst simultaneously shorting them through a credit default instrument - say a CDS via the back door.

I clearly deserve a 4 x PM bonus!

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What amazes me is Hitachi, what are they thinking?

If the loan is unsecured, then it will mean that the borrower pays a higher rate of interest. Given that, we can assume that Mum and Dad dont have enough equity in their homes to take out a cheaper secured loan. Given that they are parents of children looking to buy a home, we can also assume that they are going to be middle aged or nearing retirement, the point at which wages start to fall and redundancy risk rises sharply. We also know that they havent saved, hence the need for a loan.

So since during the prime years of their lives, Mum and Dad havent saved nor built up equity, and are facing falling incomes in the future, why oh why would anyone a huge amount of money to them, UNSECURED?

I cant see how Hitachi can profit from this trade.

I say that this is a good thing for many Mum's and Dad's without much money. Borrow as much as you can, give the money to the kids, and go bankrupt. It cant be fraudulent conveyance, as the purpose of the loan is to give it to your kids, and it will be difficult to prove that the money was borrowed with no intent to repay.

Edited cos I missed a bit.

Edited by leicestersq

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What amazes me is Hitachi, what are they thinking?

If the loan is unsecured, then it will mean that the borrower pays a higher rate of interest. Given that, we can assume that Mum and Dad dont have enough equity in their homes to take out a cheaper secured loan. Given that they are parents of children looking to buy a home, we can also assume that they are going to be middle aged or nearing retirement, the point at which wages start to fall and redundancy risk rises sharply. We also know that they havent saved, hence the need for a loan.

So since during the prime years of their lives, Mum and Dad havent saved nor built up equity, and are facing falling incomes in the future, why oh why would anyone a huge amount of money to them, UNSECURED?

I cant see how Hitachi can profit from this trade.

I say that this is a good thing for many Mum's and Dad's without much money. Borrow as much as you can, give the money to the kids, and go bankrupt. It cant be fraudulent conveyance, as the purpose of the loan is to give it to your kids, and it will be difficult to prove that the money was borrowed with no intent to repay.

Edited cos I missed a bit.

Providing they live in rented accommodation?

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What amazes me is Hitachi, what are they thinking?

snip

Note, its a press release,

Note, barrat sales are down, but the shares are not.

Hitachi is a "partner"....note, all they needed to do to get the value up was to show a potential path to sales growth, and hey presto, the scheme is complete. Expect no loans and plenty of Barrats selling

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Note, its a press release,

Note, barrat sales are down, but the shares are not.

Hitachi is a "partner"....note, all they needed to do to get the value up was to show a potential path to sales growth, and hey presto, the scheme is complete. Expect no loans and plenty of Barrats selling

Product placement in the press?

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I completely agree, it should be illegal!

It's completely insane and morally wrong! No doubt the news will paint this as good news to help ftbs, but we all know it's just digging everyone into more debt, there parents should be saving for old age, not taking on massive loans!

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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