swankyman Posted November 12, 2012 Share Posted November 12, 2012 Notts County Council sets aside £15m to help first-time buyers get foot on property ladder MORE than 500 first-time buyers in Notts could be helped to buy their homes thanks to a £15 million scheme. Notts County Council has set the money aside to help people who want to get on the property ladder. Under the scheme it will loan people money for their deposits – if they can stump up the first 5% of it. It is capped at houses priced at £150,000 or less and people must pay back the money within five years. The money comes from the council's reserve funds. My link Can't wait for my council tax to go to this. Wonder how they decide who gets it? Maybe its done on which property they want to buy and who owns it Quote Link to comment Share on other sites More sharing options...
scrappycocco Posted November 12, 2012 Share Posted November 12, 2012 Bloody councils, instead of making property cheaper to reduce cost of living, they make it more expensive and help you buy with subsidies so that you can get on the housing debt slave ladder. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted November 12, 2012 Share Posted November 12, 2012 My link Can't wait for my council tax to go to this. Wonder how they decide who gets it? Maybe its done on which property they want to buy and who owns it Will you still be paying it ? Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted November 12, 2012 Share Posted November 12, 2012 My link Can't wait for my council tax to go to this. Wonder how they decide who gets it? Maybe its done on which property they want to buy and who owns it Why not send an email as a Freedom of Information request asking which councillors have interests in the property industry? Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted November 12, 2012 Share Posted November 12, 2012 My link Can't wait for my council tax to go to this. Wonder how they decide who gets it? Maybe its done on which property they want to buy and who owns it if its a reserve, then its going to cost nothing...in any case, the FTBs are going to pay it all back in 5 years . course, a council "reserve" is probably nothing of the sort. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted November 12, 2012 Share Posted November 12, 2012 if its a reserve, then its going to cost nothing...in any case, the FTBs are going to pay it all back in 5 years . course, a council "reserve" is probably nothing of the sort. It's not going to cost nothing to people not on the scheme who want to buy their first or a larger house. A council sponsored liar loan enabling people to buy something they cannot really afford, means other people have to pay more to compete. How many houses could a land owning council build with £15m? Then sell them and use the money to build more. Thus creating jobs instead of just taking lending risk from banks on overpriced houses. These schemes are just bank bailouts in advance in case of any house price falls. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted November 12, 2012 Share Posted November 12, 2012 It's not going to cost nothing to people not on the scheme who want to buy their first or a larger house. A council sponsored liar loan enabling people to buy something they cannot really afford, means other people have to pay more to compete. How many houses could a land owning council build with £15m? Then sell them and use the money to build more. Thus creating jobs instead of just taking lending risk from banks on overpriced houses. These schemes are just bank bailouts in advance in case of any house price falls. I agree...its market manipulation for a socialist wet dreamer. They will say it will cost nothing....as you say, everyone else pays...specially the recipients who are not having to worry about the price so much. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted November 12, 2012 Share Posted November 12, 2012 I don't know anything about Nottingham but re these schemes in general which of the following might apply? 1. Councillors are really naive and think saddling people with too much debt to buy an overpriced houses "helps" them. 2. Profile of a typical councillor will be an aged house owner with an asset value to protect, these schemes help do that 3. Councils have councillors with property industry interests (builders, surveyors, estate agents, etc) or family and friends do so they are shaping policy to help their business interests 4. The government (i.e. taxpayers) are ultimately lenders of last resort for these schemes, government owned Lloyds are doing these schemes, so it's a way of protecting their existing mortgages from negative equity by propping prices up. Surely the real way to help people is build affordable houses and create jobs while doing it? These council schemes are not just for new builds. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted November 12, 2012 Share Posted November 12, 2012 snip Surely the real way to help people is build affordable houses and create jobs while doing it? These council schemes are not just for new builds. the market would of course be doing just that...but it is being fiddled about with from all angles...the landbanks, the planning, the baleouts, the purchase schemes...its all about asset values...not sure why a council or Government should be concerning itself with a value of a privately owned asset. Quote Link to comment Share on other sites More sharing options...
Jail Them All Posted November 12, 2012 Share Posted November 12, 2012 the market would of course be doing just that...but it is being fiddled about with from all angles...the landbanks, the planning, the baleouts, the purchase schemes...its all about asset values...not sure why a council or Government should be concerning itself with a value of a privately owned asset. Stumped here myself, especially since the councils are supposed to be making cuts. What are they trying to prevent / fix which causes them to allocate this money? What is their motivation?? Quote Link to comment Share on other sites More sharing options...
Patfig Posted November 12, 2012 Share Posted November 12, 2012 It's not going to cost nothing to people not on the scheme who want to buy their first or a larger house. A council sponsored liar loan enabling people to buy something they cannot really afford, means other people have to pay more to compete. How many houses could a land owning council build with £15m? Then sell them and use the money to build more. Thus creating jobs instead of just taking lending risk from banks on overpriced houses. These schemes are just bank bailouts in advance in case of any house price falls. very nicely said Quote Link to comment Share on other sites More sharing options...
Liquid Goldfish Posted November 12, 2012 Share Posted November 12, 2012 (edited) Last time I checked, the special mortgage for these schemes, which are all taken out through LLoyds was pretty rubbish. It's meant to give the equivalent of a 75% LTV loan but was about 2% higher than the best 75% mortgages and higher even than some 90% mortgages. Edited November 12, 2012 by oldsport Quote Link to comment Share on other sites More sharing options...
mfp123 Posted November 12, 2012 Share Posted November 12, 2012 (edited) so now people are being loaned money to help them get a loan, which they couldn't ordinarily get. no doubt if you cant get hold of the first 5% you could get a loan to sort that out for you. so you could take out a loan that will allow you to obtain a loan that will allow you to get a loan to buy a house. Edited November 12, 2012 by mfp123 Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted November 12, 2012 Share Posted November 12, 2012 Last time I checked, the special mortgage for these schemes, which are all taken out through LLoyds was pretty rubbish. It's meant to give the equivalent of a 75% LTV loan but was about 2% higher than the best 75% mortgages and higher even than some 90% mortgages. The people are taking the mortgages out because they cannot afford a 25% deposit. It's low hanging fruit for the banks to charge a higher interest rate than for people who can afford. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted November 12, 2012 Share Posted November 12, 2012 so now people are being loaned money to help them get a loan, which they couldn't ordinarily get. It's not new. These schemes are spreading across councils like a virulent disease. Just a few mentioned of those on here http://www.housepricecrash.co.uk/forum/index.php?showtopic=169240 http://www.housepricecrash.co.uk/forum/index.php?showtopic=173078 http://www.housepricecrash.co.uk/forum/index.php?showtopic=175423 http://www.housepricecrash.co.uk/forum/index.php?showtopic=183489 Shifting lending risk from banks to our council tax (ultimately income tax) while interest rates are at a 300 year low. Quote Link to comment Share on other sites More sharing options...
Liquid Goldfish Posted November 12, 2012 Share Posted November 12, 2012 (edited) It's not new. These schemes are spreading across councils like a virulent disease. Just a few mentioned of those on here http://www.housepricecrash.co.uk/forum/index.php?showtopic=169240 http://www.housepricecrash.co.uk/forum/index.php?showtopic=173078 http://www.housepricecrash.co.uk/forum/index.php?showtopic=175423 http://www.housepricecrash.co.uk/forum/index.php?showtopic=183489 Shifting lending risk from banks to our council tax (ultimately income tax) while interest rates are at a 300 year low. I've been following this story quite closely as it got me pretty annoyed. One thing I've noticed is that all the schemes seem to "help" a similar ratio of FTBs relative to their local population - and on that basis even if every council in the UK was involved they would only "help" about 30,000 FTBs over a period of 5 years - and a proportion of these may have found a way to buy anyway - so unless there's a massive expansion then thankfully I think it's only going to have a very marginal effect. Edited November 12, 2012 by oldsport Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted November 12, 2012 Share Posted November 12, 2012 I've been following this story quite closely as it got me pretty annoyed. One thing I've noticed is that all the schemes seem to "help" a similar ratio of FTBs relative to their local population - and on that basis even if every council in the UK was involved they would only "help" about 30,000 FTBs over a period of 5 years - and a proportion of these may have found a way to buy anyway - so unless there's a massive expansion then thankfully I think it's only going to have a very marginal effect. It's not just new builds. The idea is to create chains of sales. The Oldham Mortgage will initially assist around 50 families to realise their dreams of buying a first home – and will have an even wider knock-on effect. By allowing buyers to select homes from those on the open market experts predict it could lead to a knock-on effect of about 250 sales in total because first-time buyers really help to spark the property chain into life. http://oldhamcouncil.wordpress.com/2012/02/22/oldham-mortgage-a-hand-up-not-a-handout/ The "experts" are the estate agents surrounding the leader of the council! Quote Link to comment Share on other sites More sharing options...
mfp123 Posted November 12, 2012 Share Posted November 12, 2012 by lending money to acquire a deposit, its essentially shifting the risk from banks to the taxpayer. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted November 12, 2012 Share Posted November 12, 2012 by lending money to acquire a deposit, its essentially shifting the risk from banks to the taxpayer. Its also arranging a 95% mortgage.. Quote Link to comment Share on other sites More sharing options...
Liquid Goldfish Posted November 12, 2012 Share Posted November 12, 2012 (edited) It's not just new builds. The idea is to create chains of sales. But surely that's the same whenever a FTB buys, whether they are being "helped" by one of these LA schemes or not? All I was noting was that an extra 30,000 (maximum) FTBs (and chains) over 5 years isn't going to change much - it would only be 500 extra FTBs each month when there are already 20,000 FTBs every month - and that's if every council joins in. Edited November 12, 2012 by oldsport Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted November 12, 2012 Share Posted November 12, 2012 But surely that's the same whenever a FTB buys, whether they are being "helped" by one of these LA schemes or not? All I was noting was that an extra 30,000 (maximum) FTBs (and chains) over 5 years isn't going to change much - it would only be 500 extra FTBs each month when there are already 20,000 FTBs every month - and that's if every council joins in. I was just wondering if you thought it was new builds for FTBs which wouldn't create chains. Though now I wonder if we have had this same conversation before? As to whether it makes a difference it's something they shouldn't be doing because liar loans force other people to pay too much as well. If it is deemed a "success" it could be extended. Quote Link to comment Share on other sites More sharing options...
RufflesTheGuineaPig Posted November 12, 2012 Share Posted November 12, 2012 It's not new. These schemes are spreading across councils like a virulent disease. Just a few mentioned of those on here http://www.housepricecrash.co.uk/forum/index.php?showtopic=169240 http://www.housepricecrash.co.uk/forum/index.php?showtopic=173078 http://www.housepricecrash.co.uk/forum/index.php?showtopic=175423 http://www.housepricecrash.co.uk/forum/index.php?showtopic=183489 Shifting lending risk from banks to our council tax (ultimately income tax) while interest rates are at a 300 year low. The "best planned" schemes are the ones that offer guarantees. You know, the ones where the council don't have to pay anything up front, and someone else has to cleanup the mess later. Quote Link to comment Share on other sites More sharing options...
Liquid Goldfish Posted November 12, 2012 Share Posted November 12, 2012 Though now I wonder if we have had this same conversation before? I was just thinking the same!! As you say, the great danger is they'll extend it due to "popular demand" Quote Link to comment Share on other sites More sharing options...
200p Posted November 13, 2012 Share Posted November 13, 2012 Assuming the possibility of the ponzi is not allowed to collapse, it will not collapse. So it is safe to take up these schemes. As long as you don't lose your job or will ever want to move. Those at the top of the ponzi pyramid must look pretty safe now? Quote Link to comment Share on other sites More sharing options...
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