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First Time Buyers 'resorting To Unsecured Credit'

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Some first time buyers are so desperate to get on the property ladder they are prepared to resort to using credit cards and personal loans to fund deposits, a survey has found.

New-build property agency SmartNewHomes found ten per cent of first time buyers are prepared to do this, with the firm describing this as a "cause for concern".

One alternative way forward could be to seek a shared equity mortgage, with the company's director Steve Lees suggesting this is one of the "sensible options" that may be considered.

Shared equity mortgages allow first time buyers to buy their first home with a small deposit

The survey found other common ways people raised money for their first deposit included savings - which around half would use - along with 18 per cent seeking parental help.

In a speech last week, director general of the Council of Mortgage Lenders' Paul Smee said effective government action could act as the "catalyst" for major improvements in the housing market.

Back alley lending for something which has been purposefully idealised into the last vestige of personal security and prestige...

This culture of greed and the concerted effort to target certain sectors of society shows the underbelly of British culture for what it is: a mockery of social justice for the world's oldest democracy.

Where the hell is our 'responsible' government?

No wonder people here are so miserable.

As people always say, it won't end well.

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There is no such thing as unsecured debt when you have an asset like a house.

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1) Setup a Limited COmpany

2) Take out as many personal credit cards as you can all at the same time

3) Put the money into the company and have the company use it to buy a few BTLs at low LTV

4) Beclare personal bankrupcy

5) Live off the rents.

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1) Setup a Limited COmpany

2) Take out as many personal credit cards as you can all at the same time

3) Put the money into the company and have the company use it to buy a few BTLs at low LTV

4) Beclare personal bankrupcy

5) Live off the rents.

You cant be a Director of an LTD if you are Bankrupt.

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Some first time buyers are so desperate to get on the property ladder they are prepared to resort to using credit cards and personal loans to fund deposits, a survey has found.

New-build property agency SmartNewHomes found ten per cent of first time buyers are prepared to do this, with the firm describing this as a "cause for concern".

The other 90% were too afraid to admit it.

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There is no such thing as unsecured debt when you have an asset like a house.

Explain yourself.

How is a mortgage an asset? Especially a near 100% mortgage in a flat (at best) and declining market?

We're not talking about your parents who fully own a house, we're talking youngsters maxing out the Visa card and lying to get a on the mythical ladder.

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Explain yourself.

How is a mortgage an asset? Especially a near 100% mortgage in a flat (at best) and declining market?

We're not talking about your parents who fully own a house, we're talking youngsters maxing out the Visa card and lying to get a on the mythical ladder.

huh?

the house is your asset against which you have secured a mortgage, the liability.

I think you misunderstand my comment...The article said the deposits were UNSECURED LOANS.

If you have an asset....NOTHING is UNSECURED as they will make you sell to get paid....

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Where the hell is our 'responsible' government?

Where the hell is personal responsibility?

These current buyers are making their own decisions and think they are buying at value, compared to mug renters.

If they believe the TV property porn and their parents and friends telling them it's a great time to buy, that's their own choice. They're outbidding me and others with more stable finances and savings, causing us to wait longer, the stupid chumps.

When 2011 FTB buyers Melanie the hairdresser and her boyfriend Matt the printer can't meet their repayments in the future, there will still be a big crowd on HPC who will still call for these latest buyers not to have their homes repossessed.

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Where the hell is personal responsibility?

Long gone it apears.

These current buyers are making their own decisions and think they are buying at value, compared to mug renters.

So far the buyers have proven to be the ones who get it right no matter what price they pay.

If they believe the TV property porn and their parents and friends telling them it's a great time to buy, that's their own choice. They're outbidding me and others with more stable finances and savings, causing us to wait longer, the stupid chumps.

I am no longer sure who is stupid and who isnt. If lots of these buyers cant find the repayment, it is your savings that will be tapped to make sure that they pay what they owe. Sure you are being sensible here?

When 2011 FTB buyers Melanie the hairdresser and her boyfriend Matt the printer can't meet their repayments in the future, there will still be a big crowd on HPC who will still call for these latest buyers not to have their homes repossessed.

There will be such a crowd, and an even bigger crowd in the Guardian. There is simply no idea of moral hazard, and our rule makers are willing to do anything to stay in power and are quite willing to spend other peoples money to make sure no one is ever repossessed for buying something that they cannot afford.

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Where the hell is personal responsibility?

These current buyers are making their own decisions and think they are buying at value, compared to mug renters.

If they believe the TV property porn and their parents and friends telling them it's a great time to buy, that's their own choice. They're outbidding me and others with more stable finances and savings, causing us to wait longer, the stupid chumps.

When 2011 FTB buyers Melanie the hairdresser and her boyfriend Matt the printer can't meet their repayments in the future, there will still be a big crowd on HPC who will still call for these latest buyers not to have their homes repossessed.

Can one punish the feral child for growing up in the woods with a pack of wolves?

Unfortunately, about 90% of people do exactly what they are told to do.

When you have marketing campaigns that constantly prey on this big lump of society, with massive, unending budgets, and the best brains in the social sciences bending reality, how can one of this 90% be made to think otherwise?

Its a war of ideologies but unfortunately none of them are your own.

Fvck you Edward Bernays.

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The UK housing market baffles the hell out of me. Other countries around the world in similar states to our own have seen proper corrections, but here in old Blighty we are well in bubble territory and FTB's are still desperate to buy.

I was recently speaking to a FTB who has taken the plunge courtesy of some crooked subsidised deposit scheme. When I mentioned that the only reason I'd consider buying right now would be to hedge against inflation I got a blank stare. I also got the same blank stare when I suggested that buying now maybe risky given the base rate has never been this low in the entire 300 year history of the BoE.

There are lots of things to consider when buying a house in normal market conditions but given the clusterfook that is the global financial system much more needs to be considered right now. Still none of that matters, the people already on the ladder say you cannot go wrong with bricks and mortar so why consider anything, just saddle up with a massive pile of debt, afterall, debt is wealth ;)

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'This culture of greed and the concerted effort to target certain sectors of society shows the underbelly of British culture for what it is: a mockery of social justice for the world's oldest democracy.

Where the hell is our 'responsible' government?

No wonder people here are so miserable.'

Such poignant words.

IMHO we don't have a government, just a facade of such which is entirely populated by ar@#oles happily coining it as the ship continues to sink.

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The UK housing market baffles the hell out of me. Other countries around the world in similar states to our own have seen proper corrections, but here in old Blighty we are well in bubble territory and FTB's are still desperate to buy.

I was recently speaking to a FTB who has taken the plunge courtesy of some crooked subsidised deposit scheme. When I mentioned that the only reason I'd consider buying right now would be to hedge against inflation I got a blank stare. I also got the same blank stare when I suggested that buying now maybe risky given the base rate has never been this low in the entire 300 year history of the BoE.

There are lots of things to consider when buying a house in normal market conditions but given the clusterfook that is the global financial system much more needs to be considered right now. Still none of that matters, the people already on the ladder say you cannot go wrong with bricks and mortar so why consider anything, just saddle up with a massive pile of debt, afterall, debt is wealth ;)

'Tis the British way, media propaganda et al, there is no place here for peeps with independant thought.

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huh?

the house is your asset against which you have secured a mortgage, the liability.

I think you misunderstand my comment...The article said the deposits were UNSECURED LOANS.

If you have an asset....NOTHING is UNSECURED as they will make you sell to get paid....

Not really. What they'll be trying to secure the loan against is the value of the equity of redemption after priority lenders have taken their chunk. But without a real deposit no equity exists until the value of the house rises and is realised on sale. If lenders are aware of this use of unsecured loans they should clamp down now.

Not going to happen.

There are 100,000s of charges in the UK that will never be paid from proceeds of sale. I expect that to go to 7 figures. Just more fraud waiting for a bailout.

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Not really. What they'll be trying to secure the loan against is the value of the equity of redemption after priority lenders have taken their chunk. But without a real deposit no equity exists until the value of the house rises and is realised on sale. If lenders are aware of this use of unsecured loans they should clamp down now.

Not going to happen.

There are 100,000s of charges in the UK that will never be paid from proceeds of sale. I expect that to go to 7 figures. Just more fraud waiting for a bailout.

sure, but thatis an effect of falling prices...not the principle I was alluding to.

Bankers are the LAST ones to want to see asset prices fall...they already lie about them as we know from the FDIC experience in the US.

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The UK housing market baffles the hell out of me. Other countries around the world in similar states to our own have seen proper corrections, but here in old Blighty we are well in bubble territory and FTB's are still desperate to buy.

The property porn mantra of buy now before it is too late has brainwashed so many.

The whole thing is being propped up by ever more desperate suckers who are being lured in by the prospect of some illusion of wealth as promised by certain tv programmes.

It is all very sad, at the end of the day anyone who bought pre 6/7 years ago will be fine and whilst they may think they lose money if prices fall they will have lost nothing at all.

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Explain yourself.

How is a mortgage an asset? Especially a near 100% mortgage in a flat (at best) and declining market?

We're not talking about your parents who fully own a house, we're talking youngsters maxing out the Visa card and lying to get a on the mythical ladder.

Oh god! it will all be so awful when the final curtain on this debt crisis finally falls.

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I am a prospective FTB in this situation and I have been considering taking out a small (few £k) loan to enable me and my partner to more comfortably handle a house deposit.

For a variety of reasons we are looking to buy as soon as we find something suitable, a recent change in my circumstances putting an end to my time as a staunch HPCer, not to mention the possibility of stamp duty returning for FTBs on March 25th.

As it happens we were able in the end to find the funds for the deposit on a house we are interested in, but had we fallen short then a short-term loan would have been a sensible option imo as we don't have the extra few months in which to save the money in a bank.

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There is no such thing as unsecured debt when you have an asset like a house.

Yes, and anyone contemplating getting a mortgage would do well to get it from a bank other than the one holding the account they have their wages paid into. Banks have been known to withhold funds and apply them to outstanding loan amounts.

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Where the hell is personal responsibility? ..........

When 2011 FTB buyers Melanie the hairdresser and her boyfriend Matt the printer can't meet their repayments in the future, there will still be a big crowd on HPC who will still call for these latest buyers not to have their homes BMW M5 repossessed.

Yip. Like above, just change the word 'home' for something else they couldn't afford. Indeedy. it's about time personal responsibility came back to the fore. Debt mountain Island, eh?

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  • 284 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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