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The Knimbies who say No

How First-Time Buyers Can Get On The Property Ladder

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Basically a clarion call to get everyone who can't tie their shoelaces together to dive into a falling market, and while they're at it, try and sling their parents and/or friends an anchor to boot. It takes a special kind of numpty to put crayon to paper to write a puff piece about 'mates mortgages' when the idea has been slated by even mortgage brokers. Ms Simon even talks about increased leverage in a positive light in the 'mates mortgages' section, yet in the same article she talks about falling prices in the 'specialist savings schemes', whatever TF they are. Look like, erm, a savings account. 'cos it's higher interest and you have to subject yourself to a sales meeting with the mortgage adviser, it's now a 'specialist' product. How innovative.

Churnalism at its best:

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8679559/How-first-time-buyers-can-get-on-the-property-ladder.html

By Emma Simon

===============

But for there are options for those who are struggling to build a deposit and can’t secure enough mortgage funding.

BANK OF MUM AND DAD

Many people fall back on parental help to get them on the housing ladder – but if your parents can’t afford to lend you money towards a deposit, they may be able to help you get on the housing ladder.

Some bank now offer “guarantor” mortgages, where the home loans is effectively underwritten by the parents. So if you fell behind with monthly payments, this means that they would be obliged to pay.

The advantage of such schemes is that parents don’t have to stump up cash sums upfront and it can enable you to borrow more. But if you run into financial problems, this can affect your parents’ ability to get credit and potentially put their home at risk. Your parents would need to have sufficient income and/or equity in their home to be an effective guarantor, so not all first-time buyers would be able to obtain one of these mortgages.

BUYING TOGETHER

Buying with friends or a partner can help you afford the place you want, as both incomes will be assessed. As a rule of thumb, banks lend up to three times a single income, and two-and-a-half times joint income – which can give greater leverage.

But banks deploy more complex credit scoring so the exact amounts will depend both partners’ financial history. Those with significant credit card debts, for example, you won’t be able to borrow as much. While young professionals, with good career prospects (doctors, accountants etc) may be able to borrow more.

Make sure you have a robust legal agreement in place to cover what happens if you go your separate ways. This can be difficult to negotiate when you end on less than friendly terms.

SHARED OWNERSHIP SCHEMES

If your parents can’t help and you don’t have a deposit, look at “shared ownership” purchase.

Here housing associations allow you to buy 25 per cent of a property, and pay rent to them on the rest. When you can afford it you make a further staged purchase.

As you are only buying a slice of the property the deposit needed will be significantly smaller – closer to 5pc of the full purchase price.

A number of banks offer mortgages to help pay for these staged payments. Talk to your local housing association for more details.

SPECIALIST SAVING SCHEMES

Some banks offer preferential savings deals to those trying to build a deposit. These can pay higher rates than most instant access accounts. Usually to qualify for one of these savings scheme you have to agree to a meeting with that bank’s mortgage adviser. However, you are not legally obliged to take a mortgage from the bank when you are in a position to buy a home (steer clear of any such account that say you are required to take their mortgage deal).

Make the most of these savings deals. Even if it takes you a period of time to save enough, you may be in a better position, with house prices sliding and lending rule relaxing.

However, ensure you shop around for the best mortgage deal at the time – savings made here will easily outweigh any preferential savings rate given.

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Life goes on and the wheel keeps on turning. In the last 4 years or so, we have gone from 'buy now, you can't lose' to the present day 'buy now, you will probably lose, but we won't be picking up the tab. Have the VI's no shame ?

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Before long they'll be pushing all the schemes as one big scheme.

"Get your parents to lend you a deposit for a 20% shared ownership and get 4 mates on board as well. You will then be the proud 'owner' of 5% of a house but at least you'll be on the ladder"

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Basically a clarion call to get everyone who can't tie their shoelaces together to dive into a falling market, and while they're at it, try and sling their parents and/or friends an anchor to boot. It takes a special kind of numpty to put crayon to paper to write a puff piece about 'mates mortgages' when the idea has been slated by even mortgage brokers. Ms Simon even talks about increased leverage in a positive light in the 'mates mortgages' section, yet in the same article she talks about falling prices in the 'specialist savings schemes', whatever TF they are. Look like, erm, a savings account. 'cos it's higher interest and you have to subject yourself to a sales meeting with the mortgage adviser, it's now a 'specialist' product. How innovative.

Churnalism at its best:

http://www.telegraph...rty-ladder.html

Scraping the bottom of the debt market. It will be empty soon.

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Before long they'll be pushing all the schemes as one big scheme.

"Get your parents to lend you a deposit for a 20% shared ownership and get 4 mates on board as well. You will then be the proud 'owner' of 5% of a house but at least you'll be on the ladder"

:lol::lol::lol:

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Before long they'll be pushing all the schemes as one big scheme.

"Get your parents to lend you a deposit for a 20% shared ownership and get 4 mates on board as well. You will then be the proud 'owner' of 5% of a house but at least you'll be on the ladder"

"It's a small sacrifice to get that all-important affordable home. If you club together then an affordable home doesn't have to cost much more than renting!"

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  • 331 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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