Jump to content
House Price Crash Forum
SarahBell

Shared Equity Timebomb

Recommended Posts

Pinched this bit from elsewhere:

We have a shared equity time bomb when the owners have to pay back their 10-25% loan after there 5-10 gap period. In the mean time the house price will fall making it near impossible to remortgage, dangerous as interest rates rise.

So

how many shared equity done this way

when do they need to repay?

Share this post


Link to post
Share on other sites

Pinched this bit from elsewhere:

We have a shared equity time bomb when the owners have to pay back their 10-25% loan after there 5-10 gap period. In the mean time the house price will fall making it near impossible to remortgage, dangerous as interest rates rise.

So

how many shared equity done this way

when do they need to repay?

These fiddles and great ideas that people come up with to make things better, they always fail. This one will be a disaster for many, and they will go seeking compensation from the taxpayer I have no doubt.

Why the government should ever get involved with nonsense like shared equity schemes is beyond me. Why is it, that what we need of politicians, is a desire to leave well alone, when what we get are people who interfere and do stuff when the best thing to do is nothing at all?

Share this post


Link to post
Share on other sites

These fiddles and great ideas that people come up with to make things better, they always fail. This one will be a disaster for many, and they will go seeking compensation from the taxpayer I have no doubt.

Why the government should ever get involved with nonsense like shared equity schemes is beyond me. Why is it, that what we need of politicians, is a desire to leave well alone, when what we get are people who interfere and do stuff when the best thing to do is nothing at all?

As Ronan Keating, Keith Whitley and Alison Krauss no doubt meant to say:

"They do it best, when they do nothing at all".

Share this post


Link to post
Share on other sites

I picked up on this months ago. Some friends of mine bought 75% of their house in 2003 promising to repay the remaining 25% in 2013. They are skint working 60+ hour weeks as it is now on IO mortgage. D-day is here for many already!

Share this post


Link to post
Share on other sites

I picked up on this months ago. Some friends of mine bought 75% of their house in 2003 promising to repay the remaining 25% in 2013. They are skint working 60+ hour weeks as it is now on IO mortgage. D-day is here for many already!

Easy answer, just sell the damn thing, should be able to get a good sum more than 2003 price, even now. Unles.... they overpaid? MEW'd? Spunked their disposable income on BMW X6's?

Share this post


Link to post
Share on other sites

Easy answer, just sell the damn thing, should be able to get a good sum more than 2003 price, even now. Unles.... they overpaid? MEW'd? Spunked their disposable income on BMW X6's?

Rabbit hutch + bad area. Wages are depessed also so dint think they'd find a buyer to save them.

He bought a BMW M3 so you know them pretty well :D

Share this post


Link to post
Share on other sites

Rabbit hutch + bad area. Wages are depessed also so dint think they'd find a buyer to save them.

He bought a BMW M3 so you know them pretty well :D

Lord. He doesn't also happen to be an 'IT contractor' does he ? That would be the full house. :lol:

Share this post


Link to post
Share on other sites

Well who cares. He could go the whole "slave the rest of your life to pay off stupid debt decisions" or just go bankrupt +/- dole. He will have lived the life of Riley (hopefully) and be able to continue in a reduced manner.

I, on the other hand, have never owned a M3 or other sports car and am nearing the age where it'd be a mid-life crisis purchase as opposed to *****-extension. Quite sad, really.

Or maybe not, if my big life decisions turn out to be correct. But that's besides the point.

Share this post


Link to post
Share on other sites

Pinched this bit from elsewhere:

We have a shared equity time bomb when the owners have to pay back their 10-25% loan after there 5-10 gap period. In the mean time the house price will fall making it near impossible to remortgage, dangerous as interest rates rise.

So

how many shared equity done this way

when do they need to repay?

Sheard equity is one of the best idea and it is win-win for banker.

If the buyer can pay up. they charged a big admin fee + intrest, if they not pay up, that even better, I gusses they can re-package 5 times and sell to each other before it gets to one of those fund either from ISA or pension fund and earn 5X commission.

Normal working people pay into those pension will not have a choose as they are force to pay into it, and they will always be better as their company always match 50% + tax benfit. Hence if the fund do not lost more than half its value. everyone is a winner.

Share this post


Link to post
Share on other sites

Pinched this bit from elsewhere:

We have a shared equity time bomb when the owners have to pay back their 10-25% loan after there 5-10 gap period. In the mean time the house price will fall making it near impossible to remortgage, dangerous as interest rates rise

So how many shared equity done this way

when do they need to repay?

I don't know the numbers but many housing associations have large numbers of mixed tenure.

I can't understand why people were tempted by shared ownership, it makes no financial sense.

One of my biggest concerns is housing associations and how they do business. They raise capital through bonds and own large numbers of houses which are very over valued. And land prices drop surely these organisations will find it harder to sell their debts.

People now own 50% of nothing and still required to pay rent at Market rents as they were 4 years ago. I really feel sorry for these poor families that have been conned by these housing associations.

Share this post


Link to post
Share on other sites

I can't understand why people were tempted by shared ownership, it makes no financial sense.

because sadly it was/is the only way that many felt they could be stable somewhere, decorate it etc., not be at risk of eviction on landlord whim. It's people paying a massive premium to find a stable home base, financial sense unfortunately comes second for many to the importance of stability, we especially see this when people have children.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 311 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.