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they will be "paid" back but at a loss. The loss should have been absorbed by banking and good lending standards instead the government has seen fit to disrupt the fundamentals of credit risk which will obviously lead to disaster but since the govt can keep printing no one is going to go against them until a total loss of confidence e.g ERM failure.

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A solo first-time-buyer buying a typical £400,000 one-bedroom flat in London with a £160,000 loan - worth 40pc of the property - would have to pay a staggering £2,666 a month just to pay the loan off within five years.

If mortgage costs and living costs are added, this would mean they would have to earn £5,000 a month - or a salary of £90,000 a year - to comfortably pay off the loan.

7 years of ZIRP, 3 years of HTB and then someone can actually type out ridiculous statements like the above.

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Peter Gettins, of London & Country, said that many borrowers might not realise they would then have to give back this 40pc - and this could cause problems when they tried to buy their next property.

More sand in the gears of an already low-volume market.

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they will be "paid" back but at a loss. The loss should have been absorbed by banking and good lending standards instead the government has seen fit to disrupt the fundamentals of credit risk which will obviously lead to disaster but since the govt can keep printing no one is going to go against them until a total loss of confidence e.g ERM failure.

Which brings me to repost this excellent video that never ever gets old

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Said it before, will say it again, HTB is a scandal in the making. Cameron says he regrets not launching it sooner, one day he will regret launching it at all.

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How can you 'not realise' you're 160k in debt?

If there's debt forgiveness I'd like a rent refund, please.

If we were to follow Steve Keen's model, that is pretty much what would happen. Everyone would get x amount of cash but if you have debts you would have to use it to pay those down first. The fairest debt forgiveness I have heard of, so, no doubt that it won't be like that!

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How can you 'not realise' you're 160k in debt?

If there's debt forgiveness I'd like a rent refund, please.

It's likely built in. From Help to Buy in England - Terms and Conditions, as set out by Harlequin Homes (h/t long time lurking):

1.9 If, on the sale of the property, the price of the property has fallen and there is insufficient money from the sale to repay the equity loans after the mortgage has been paid the purchaser will lose any deposit paid. The HCA will not however seek to recover the balance of their equity, not otherwise paid out of the proceeds of sale, from the purchaser.

1.10 The purchaser may repay the equity loan to the HCA at any time following legal completion. Repayment whether in full or by instalments will be based on the market value of the property at the time of the repayment(s) and the purchaser will have to arrange and pay for the valuation of the property at that time. The minimum instalment value is 10% of the total of the equity loans.

Thread here. (With a bit of confusion in the middle but we did confirm it direct from the HTB legal pack in the end as well.)

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Surprised some HPC aren't leading the fight on behalf of HPI mega owners (have to share mad gainz) SAMs, 20 years ago.

Oh... no real bailout for the SAMs awww - the innocence.

http://www.theguardian.com/money/2012/jun/08/shared-appreciation-mortgage-bank-of-scotland

Has HTB London begun yet? If so, no one is dragging buyers into it.

Pretty thin stuff, but some on the selling side encouraging FTBs to offer lower prices. It's a market, not a constant bailout festival for HPIers and those who want to pay ever higher prices, and wanting as much help as possible to outbid someone else by crazy sums. Who'd have thunk it?

C9UDczJ8.jpg

Click img to expand

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How can you 'not realise' you're 160k in debt?

If there's debt forgiveness I'd like a rent refund, please.

Because there's no such thing as personal responsibility when you're being sold to. You're simply "mis"-sold too in one way or another.

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Has anyone got to the bottom of why the Telegraph have stopped their comments on articles?

I rang them up, and the 'customer services' guy was rather sheepish when I asked him. He said it was due to a website upgrade, but they didn't know when comments would be back up.

I said, tongue in cheek, that probably after the referendum, and he chocked. They blatantly have an agenda.

Nothing like free speech, hey.

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It's likely built in. From Help to Buy in England - Terms and Conditions, as set out by Harlequin Homes (h/t long time lurking):

Thread here. (With a bit of confusion in the middle but we did confirm it direct from the HTB legal pack in the end as well.)

Thanks - why do I keep forgetting this?

HtB is a terrible policy. The government now has a direct and explicit financial interest in house price inflation.

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Thanks - why do I keep forgetting this?

HtB is a terrible policy. The government now has a direct and explicit financial interest in house price inflation.

If you think about it, its actually just another loose money QE policy. More free money to the property sellers, to spend on the range rovers etc, caribbean holidays etc. QE money going straight to the rich (right where its intended to go to). Once the new rates kick in after 5 years, life gets harder for the owner, more interest, perhaps take an extra job to pay for it, work more hours, pay more tax? Sounds like a perfect cam-osborne tory scum policy to me... And on the plus side guaranteed HPI!

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Thanks - why do I keep forgetting this?

HtB is a terrible policy. The government now has a direct and explicit financial interest in house price inflation.

Because it's totally bonkers?

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Politically, we've seen Labour blow itself up with Blair and Brown.

No the Cons are doing the same, proping up housing and encouraging people to jump in.

And they wonder why politicians are unpopular.

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Politically, we've seen Labour blow itself up with Blair and Brown.

No the Cons are doing the same, proping up housing and encouraging people to jump in.

And they wonder why politicians are unpopular.

Potentially they may be playing a more subtle game and propping up housebuilders whilst taking the heat out of the market from the investor side of things. We'll see with time.

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Potentially they may be playing a more subtle game and propping up housebuilders whilst taking the heat out of the market from the investor side of things. We'll see with time.

UKs problem is politicians try to be too clever.

Running down banks exposures to house builders.

Then what? Risk is not destroyed, just shuffled.

Like the clever idea of betting UK economy on finance as it apeasrsto be more profitable. Suckered by a load of accounting sleighhts of hand.

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UKs problem is politicians try to be too clever.

Running down banks exposures to house builders.

Then what? Risk is not destroyed, just shuffled.

Like the clever idea of betting UK economy on finance as it apeasrsto be more profitable. Suckered by a load of accounting sleighhts of hand.

Oh yeah, I'm not saying it's a good idea!

I just think that their overall aims may be a little more complicated than simply wanting to support house prices.

Of course there is always the distinct possibility that different measures have wholly incompatible and competing agendas.

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If we were to follow Steve Keen's model, that is pretty much what would happen. Everyone would get x amount of cash but if you have debts you would have to use it to pay those down first. The fairest debt forgiveness I have heard of, so, no doubt that it won't be like that!

Sounds a good idea, although it should not go to those who decided to live off benefits rather than working or studying.

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