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New Building Society Grandparent-Backed Ponzi Mortgages

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Now you can ask your grandparents to guarantee your mortgage: 'Family loans' will let parents and other relatives help young people onto the housing ladder

  • Parents, grandparents and other relatives will be able to combine finances
  • This will help secure and guarantee mortgage and reduce repayment costs
  • Home loans will make it easier for young to get on to housing ladder with deposits of as little as 5 per cent of propertys value.
  • Building society is first to be launched since Ecology in 1981

http://www.dailymail.co.uk/news/article-2690741/Launch-family-mortgage-New-plans-allow-parents-grandparents-use-wealth-guarantee-loans.html

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If it looks like a ponzi...smells like a ponzi and tastes like a ponzi...its a ponzi.

But unfortunately its a government backed ponzi, a totalitarian HP rise loving govt. who will print, borrow and steal forever more.

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Redemption recycling is the key to ponzi longevity. Bernie Madoff knew all about that. In fact I suspect Osborne and Carney have probably got a landline into the Butner Federal Correctional Complex where Bernie's serving a 150 year sentence for investor fraud.

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Shit. All my grandparents died before I was born - how am I ever going to get a home?

Can you forge their signature? Put their address as 'Plot 9, The Cemetary'.

Kirsty says you're just not trying.

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What's the problem?

There's no rancid reckless excess by victims other homeowners and big softies won't find an excuse for - it's the job of society to bailout the victims. Go go forever HPI "They just wanted a home."

A further option allows parents and other relatives who are asset rich but do not have spare cash to use their house as security. For example, a parent could pledge £40,000 to help a buyer with a £10,000 deposit secure a £200,000 mortgage, but only pay up if the borrower defaults.

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What is debt based money anyway, a negative red figure on a computer screen.....if the money gets the home so be it whatever the cost.....the whole family can personally guarantee it, signing up today not knowing what tomorrow will bring....all or nothing.

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But unfortunately its a government backed ponzi, a totalitarian HP rise loving govt. who will print, borrow and steal forever more.

Fortunately, there is an election next year.

Although, having said that, the election is the reason for this latest round of madness.

LibLabCon have proven themselves to be the same, on the issue of the housing bubble, so UKIP it must be.

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Our policy makers and regulators are stupid for allowing this to happen. Why would you pass liabilities up the chain to older generations? That doesn't make sense.

We should be allowing people to leverage their unborn children's future productivity by roping them into the debt, not their parents and grandparents. That way you can start to write mortgages on combined life of 2 generations c. 60 years and we can drive asset prices and debt levels even higher. It worked really nicely in Japan until it didn't.

This sort of thing is doing absolutely nothing to promote and exacerbate inter-generational inequality and should be banned.

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Our policy makers and regulators are stupid for allowing this to happen. Why would you pass liabilities up the chain to older generations? That doesn't make sense.

We should be allowing people to leverage their unborn children's future productivity by roping them into the debt, not their parents and grandparents. That way you can start to write mortgages on combined life of 2 generations c. 60 years and we can drive asset prices and debt levels even higher. It worked really nicely in Japan until it didn't.

This sort of thing is doing absolutely nothing to promote and exacerbate inter-generational inequality and should be banned.

Our policymakers and bankers are thick as thieves.

One lot benefit from more debt created in teh ystem and hence more rentier based income from their model that now destroys more business/innovtiona nd development than it creates. the other lot gain from more tax - leveragig up generated more tax from them to waste.

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FAMILY MORTGAGE

We know millions of young people still live at home or are struggling paying expensive rent. The Family Mortgage offers a new way to combine your family’s financial strength and share the load. Help the people you love take the next financial step in their lives.

The principle behind the Family Mortgage is simple. Most young adults don’t have a lot of money. That means they will only have a small deposit to put down on a property and they miss out on most of the better mortgage rates. At the same time, families may have savings and property that could be used as security for a buyer. The Family Mortgage brings these wider family assets into the mortgage calculation, helping to reduce the cost for the buyer but not asking family members to hand it over as a gift.

http://www.familybuildingsociety.co.uk/Mortgages/FamilyMortgage/Family-mortgage-home.aspx

And if you don't fancy using a relative's overpriced and unaffordable property as a ponzi piggybank, you can let this bunch of c-bombs take care of your savings direct:

http://www.familybuildingsociety.co.uk/Savings/Savings-home.aspx

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Am sure the preferred way to do this mortgage will be to simply add charges to grandparents houses rather than accept a cash deposit. Grandparents or who ever will be encouraged to either remortgage, take a lifetime equity release or a secured second charge loan. Looks to me like the banks just want as many houses as possible on their books. Why would that be?

:o

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so what happens when the guarantors die?

some old ditty with Alzheimer's, who now has the right to die, but their damn grandson objects because they will be evicted?

Edited by Snagger

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The Family Building Society is the first mutual to be established since the Ecology Building Society in 1981, and is backed by £113m of capital.

http://www.telegraph.co.uk/finance/personalfinance/building-societies/10964971/Family-Building-Society-aims-to-help-parents-to-help-children.html

Someone up the chain has allowed this to happen. First new one in 30 years and it's a blatant ponzi bubble-inflating effort. They can shove it up their rear aperture.

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