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Lloyds To Use Council Tax To Subsidise Ftb

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http://www.thisismoney.co.uk/mortgages-and-homes/article.html?in_article_id=525716&in_page_id=8

:rolleyes:

Especially liked this bit..........

......But it's a good option if your parents don't have a spare £20,000 to lend.'

................So.....If your parents haven't got £20k, don't worry, we'll take £20k from someone else who is saving for a house.

??

Lloyds TSB is teaming up with local authorities to help first-time buyers get on to the property ladder.

The Local Lend A Hand scheme is being piloted in Blackpool and East Lothian before being rolled out across Britain this year.

It allows youngsters to put down a 5% deposit if their local authority agrees to put up to 20% in a Lloyds savings account as security on the property.

The buyer owns the house outright, while the local authority earns interest on its money.

Lloyds has not confirmed mortgage rates, but says it's likely to have a three-year fixed at 5.09% with an £895 fee. Repayments on a £150,000 mortgage would be £885 a month.

'This is similar to Lloyds' existing Lend A Hand scheme, except the local authority puts down the additional security instead of the parents,' says David Hollingworth, of broker London & Country.

'The local authority will have a vetting process on borrowers and the properties available. But it's a good option if your parents don't have a spare £20,000 to lend.'

A handful of other lenders offer 95% mortgages but require additional security.

National Counties BS has a two-year fixed guarantor mortgage at 4.99%, with a £495 fee. Monthly repayments are £876. Nottingham BS has a three-year fix at 6.39%, subject to a £195 fee. Monthly repayments are £1,003.

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LA could spend their money if they're getting no interest on it.

Or banks could start paying interest.

The constant discouragement to save is shocking in this country.

What if prices fall? Who takes the hit? The home owner? How does the LA get paid back?

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So where do we all apply? Or is it that this purely a stupid, infuriating, token gesture - see the other thread where £1m helps 40 mortgage owners. Helping only 4000 homebuyers would need around £100m.

All other reasons of complaint aside, when councils are cutting bin services and libraries why are they even considering this?

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All other reasons of complaint aside, when councils are cutting bin services and libraries why are they even considering this?

Cos they have vast wealth doing nothing that they should be using to pay for the rainy days.

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http://www.guardian.co.uk/money/2011/mar/16/local-councils-first-time-buyer-mortgage-support

Buyers will have to pay interest on the full amount borrowed, including the local authority loan, but will benefit from slightly lower interest rates than they would normally pay for a 90% loan

So the council is enabling FTBers to take on more debt (and have higher repayment costs) than they otherwise would have been able to, sounds like a great deal.

Paul Campbell, a councillor with Warrington council, said normal checks would be conducted on prospective borrowers by the lender, and the risk of default to the council's proposed investment of £5m has been calculated at just 0.3%, or £15,000 over five years. "We hope the money will help 250 people on to the housing ladder, which in turn would release other people to buy bigger homes and boost the local economy," he said.

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Radical Problems require Radical solutions.

This Helping Hand scheme, is nothing more than the latest incarnation of a government supporting Vested Interests, attempting to 'transfer debt' onto FTB's.

The coalition are going to spend Ten years getting nowhere at this rate.

When they have a unique opportunity, with [Taxpayer Owned!!] Lloyds, who hold vast residential landbanks which they cannot sell.

The government should Set up a development Trust for FTB

Sell this land to FTB for a vastly reduced rate. 60% off Land Value.

One plot per FTB. Who then borrow from Lloyds via the trust.

[As per my sig]

Edited by Dan1

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http://www.lloydstsb...n_questions.asp

<a name="1">Anyone who wants to help out by opening and saving in a Lend a Hand Savings Account, can do so whether this is a parent, grandparent, aunt, uncle or friend.

Ridiculos and Theft.

Edited by Dan1

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I wonder if those "How Your Council Tax is Spent" booklets you get with your next council tax bill will be updated?

  • Emergency Services 26.5%
  • Schools/Hospitals 10.2%
  • Councillors Pensions 59.6%
  • Propping up the Housing Market and Denying Renters the Opportunity to House Their Families for Periods of Over 6 Months 28%
  • Diversity Training 12%
  • Services Which You'd Find Useful and Would Be Happy To Pay For (given the choice) 0.001%

Total 136.301% (Yes, we know this is more than we collect, enjoy next years rise to balance the books, eh?)

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Getting involved in a Ponzi Scheme is fine provided the government are prepared to keep it going. This seems to be what we have in the UK. While ever they can devalue the currency and let that take the strain instead of house prices they will. Too many of TPTB have their snouts in the housing trough to let in fail - won't stop it failing though.

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If the bank doesn't think the borrower is a good risk, why should the council?

At least they aren't GIVING our tax money away, only offering it as surety. But they shouldn't even be doing that. Providing guarantees to banks is well outside their remit. If they really want to improve the situation they should build good-sized, good quality family homes and then auction them. This would increase supply and so reduce prices. It would also increase their tax base.

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In fact, why does the council even need to provide the cash? Surely a guarantee from a council is at least as good as a guarantee from Mom & Pop, or "a friend". Then they could guarantee everyone's mortgage and we could all get the best deals. The council would only actually need to find the cash on default. B)

So banks win again.

Whatever happened to moral hazard?

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If the council gave a shit they would pay mortgages off each month using the money they had collected, reducing the debt burden on the people they apparently serve.

They don't of course because they are in the business of creating demand for bankster products via tax, licences and fines.

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Problem is though how else do you maintain house price values?

Put another way, if house prices fall then the net benefit to the UK from overseas investors is lessoned, its the lessor of two evils as I see it.

No... the lesser evil would be to remove minimum wage, maternity / paternity leave etc.....so investors have interests in entities that make stuff.........and houses don't make stuff.

??

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No... the lesser evil would be to remove minimum wage, maternity / paternity leave etc.....so investors have interests in entities that make stuff.........and houses don't make stuff.

??

Noooo, because the rentiers will use their extortion racket to suppress wages and exploit everyone.

It's the rent seekers who need a kicking. NMW is a fortune compared to basic pay throughour history, if you take out rent, mortgage and tax.

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So banks win again.

Whatever happened to moral hazard?

The banks always win, ever when they lose they win, thanks to the lame governments of the world.

The taxpayers always lose, again thanks to the governments.

Governments simply exists to steal wealth from the people to give it to the banksters, some more corrupt governments keep it for themselves.

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Lol they are cutting 1000 council jobs in Blackpool but giving money to FTB??? Not sure how I would feela about that but just going off to email the Labour shadow at Blackpool to find out

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http://www.thisismon...16&in_page_id=8

:rolleyes:

Especially liked this bit..........

......But it's a good option if your parents don't have a spare £20,000 to lend.'

................So.....If your parents haven't got £20k, don't worry, we'll take £20k from someone else who is saving for a house.

??

Now you know why they

closed libraries,

closed old peoples day centers,

stopped transport for elderly/disabled

sacked skool dinner ladies

etc etc

Common Purpose leaders divert local govt taxes to keep local house prices high at all costs!

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Noooo, because the rentiers will use their extortion racket to suppress wages and exploit everyone.

It's the rent seekers who need a kicking. NMW is a fortune compared to basic pay throughour history, if you take out rent, mortgage and tax.

Could (would) you go into more detail?

Surely NMW is all part & parcel of the whole money creation fraud thing??

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The radio nearly went through the window this morning when I heard that moron from Lloyds on it .... :blink:

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This is one of those reports where words simply fail me - to express my outrage. This really is scraping the bottom of the barrel of desperation.

This is another example of where, you can all be sure, that all the various political types will simply fail to spot all the moral and practical flaws in this plan that otheriwse 'ordinary folk' on an internet forum board pick up on in seconds.

I'm sorry I have to stop typing and put my head back in my hands and resume weeping quietly into my cornflakes..........

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  • 309 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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