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drrayjo

Intergenerational Mortgages Here We Come

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"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."

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

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"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."

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

Bank of Mum and Dad still has money to burn. This could slow down a crash good and proper.

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"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."

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

Christ on a bike - it's like watching my kids trying to build a perpetual motion machine... it's not going to work, just let the sucker crash ffs.

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"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."

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

wonder if i can pull a fast one and get them to use me dads council owned bungalow as security for the deposit

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"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."

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

So do they have to buy a Barrett home?

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So do they have to buy a Barrett home?

More "innovation" from the Banks. Just what the country needs!

Why can't these k*nts just buggar off and wreck some other country instead?

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Christ on a bike - it's like watching my kids trying to build a perpetual motion machine... it's not going to work, just let the sucker crash ffs.

haha, they will struggle and **** about but one day they will build another Oxford Bell. Maybe it won't run for ever but it might have a few lifetimes in it. ;)

They will find a way. And they will find a way to make it very profitable. And they will get big bonuses. Because Cameron says they can.

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......

Why can't these k*nts just buggar off and wreck some other country instead?

They are innovative. You will find they are wrecking the other countries at the same time.

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the real depressing thing is that most mum and dads are mug enough to fall for it, thinking all the time that it's holding the value of their own 'investment' while shelling out interest on an additional 50k.

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As if some spoilt little brats havent taken enough from their parents. 20 years of devoting themselves to bringing them up, and then look, they want you to go into debt so that they can get 'on the property ladder'

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just as a off topic to add to that, the amount of people who i heard ask each other 'are you putting anything aside for university' for their kids when the 9k fees went through.

the suckers really have been suctioned into the debt bog.

i'd be advising my kids to steer well clear of uni, if i had any.

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In most parts of the country 10 years ago, £50,000 would of bought you a very nice starter home out right.

Now £50k is considered a deposit, or the cost of a new kitchen.

We've really allowed ourselves to lose sight of both reality, and the value of money.

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just as a off topic to add to that, the amount of people who i heard ask each other 'are you putting anything aside for university' for their kids when the 9k fees went through.

the suckers really have been suctioned into the debt bog.

i'd be advising my kids to steer well clear of uni, if i had any.

Exactly right. Only by then it won't be £9k ayear, it will be £15k or £20k a year.

How much longer primary and secondary education remains 'free' is anyone's guess.

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Sheer desperation. They tried to push Japanese style generational mortgages in 2005, didn't work then, won't work now ;).

Might be good news. Back in the late 80's one of my lodgers who worked for the then; Anglia Building Society, said they were considering generational mortgages. Guess what happened next?

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Bank of mum and dad. Take money from top of pyramid and funnel into bottom to 'underpin' your wealth. Proper ponzi style.

And it'll fail ponzi style soon enough too.

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This will never pass muster in Britain. Novel idea though.

You cannot(at least not currently) enter into a legally binding contract as a minor, unless I am mistaken.

Although we are all born into penury it seems, at least the law keeps you from shackling your kids to your debt (unless you die).

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Looks like there's some dishonesty here. It's supposed to be a 12 year unsecured loan, but it's only available to parents who are homeowners with a good credit history - at 5.4%.

Since banks seem to be able to go to court these days and get so-called "unsecured" loans turned into secured loans with no difficulty at all, it's effectively a secured loan - against the parents' home. Most creditworthy homeowners old enough to have kids looking to buy property on this basis will probably have £50k of equity in any case. So why not take out the cheapest mortgage available with no early repayment charges and do it that way? Probably get a better deal than 5.4%. HSBC have been offering deals around 1.89% over base with a £99 arrangement fee and no charges for early repayment. With the way things are that looks like a better bet, if you really really want to get into property.

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innovative

:lol: I really can't believe what I said was going to happen would transpire quite so fast.

Dave, Osborne, Boris, Nat and their mates really aren't going to let this one go are they.

My prediction for 2011:-

Schapps will unveil an 'innovative' (he likes that word) mechanism for first time buyers, which the Tories have agreed with the taxpayer funded banksters, involving a short-term subsidy to fund an FTB deposit (and long-term debt instrument, obviously) which the banksters can dress up into some rehashed form of securitisation and sell to the pension funds.

Come and get me Bob - No remorse, let's put that behind us. :lol:

Edited by Red Karma

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My prediction for 2011:-

Schapps will unveil an 'innovative' (he likes that word) ....

and the torygraph have added their weight to the idea that this is "innovation". Forget the fact that the parents could simply remortgage to obtain the same £50K (they have t be creditworthy + have equity for this "unsecured" heap of debt).

See, I don't even read NewScientist, but even I know that we are capable of producing materials in the form of carbon nanotubes that are 50-100 times stronger than steel and 1/6th its weight. Can you imagine what the world would look like if that were common-place? (can you imagine the price of steel! :lol: ).

Call me stupid, but that's my definition of innovation. This piece of regurgitated debt sh1t is more like putting turn-ups on a pair of seventies flairs: embarrassing and pointless. In fact, that about sums up this country.

Edited by Sledgehead

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A few observations on this.

Firstly, which savings are being used to back the fund? Are they domestic of foreign?

Secondly, this still amounts to a haircut for the parents, since it is they who have to pay the interest on the 50K.

Thirdly, what was it I have been saying about a peak debt equilibrium again?

Fourthly, and this is related to bank bonuses too, all this does is depress the interest rate at which mortgage borrowers can ultimately borrow. It is all an outcome of a flattennig actual yield curve (forget about the nonsense curve based on bond yields), and this is going to put a crimp on bank profits before very long.

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  • 294 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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