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wsn03

first time buyers can crowdfund deposits

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Another thread on here points to Estate Agent Today website, what a great read if you want to see what's going on in the market - some headlines to make you very happy I'm sure! I thoroughly recommend reading through the headlines.

Then there are the special ones, this gem being titled - "Forget Mum and Dad - now first time buyers can crowdfund deposits".

https://www.estateagenttoday.co.uk/breaking-news/2017/9/forget-mum-and-dad--now-first-time-buyers-can-crowd-fund-their-deposit

Wonder what you get in return, use of their bathroom?

The article was written by a guy who won "Social media influencer of the year", so perhaps if he puts his weight behind it it will fly.

 

I'm sure this is going to work - who wouldn't want to contribute to total strangers to help them prop up the housing market? Wonder if I can crowd fund my summer holiday next year, I do have 3 kids, one from an ethnic minority, and we do need to go abroad (possibly in a new car, or we might fly, but it needs to be abroad).

 

Edited by wsn03

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30 minutes ago, wsn03 said:

Another thread on here points to Estate Agent Today website, what a great read if you want to see what's going on in the market - some headlines to make you very happy I'm sure! I thoroughly recommend reading through the headlines.

Then there are the special ones, this gem being titled - "Forget Mum and Dad - now first time buyers can crowdfund deposits".

https://www.estateagenttoday.co.uk/breaking-news/2017/9/forget-mum-and-dad--now-first-time-buyers-can-crowd-fund-their-deposit

Wonder what you get in return, use of their bathroom?

The article was written by a guy who won "Social media influencer of the year", so perhaps if he puts his weight behind it it will fly.

 

I'm sure this is going to work - who wouldn't want to contribute to total strangers to help them prop up the housing market? Wonder if I can crowd fund my summer holiday next year, I do have 3 kids, one from an ethnic minority, and we do need to go abroad (possibly in a new car, or we might fly, but it needs to be abroad).

 

Gawd, they are so desperate. Just let house prices fall naturally for ******s sake, no more props!

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So a load of random strangers will get together and give me a load of moola if I promise to pay them back? I'll only use this platform if it has the backing of Lendy Finance....then all investors can sleep safe in the knowledge that they'll get their money back :)

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"Here in the UK, meanwhile, for every pound that is lent to a business, £35 is lent to someone buying a property. What that means is that our obsession with home ownership is, in fact, inadvertently affecting business productivity within our economy.   "

 

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2 hours ago, TheCountOfNowhere said:

Property Pact, in its own words, "allows prospective home buyers to borrow money to help fund the gap between their existing deposit and the 'amount the bank want them to have' so that they can offer them a mortgage."

Hey bro, we heard you like debt, so we got a loan from your mates as collateral for a mortgage so you can pay while you pay

 

If the meme makes no sense, it's because this economy doesn't either

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Quote

What happens if interest rates rise?

The interest you will be asked to pay will always be the Bank of England base rate +5.5%. When interest rate rises, which is inevitable as it is currently at a record low, your interest rate will increase by exactly the amount by which the Bank of England base rate increases.
 
www.propertypact.co.uk/faq

:lol:

Edited by DrMartinSanchez

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Innovative or insanity? :rolleyes:

If you need this service to buy a house, you can't afford to buy a house. And the fact this company exists suggests the entire market as-is might not be working too well at present...

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Surely this is ********?

I highly doubt the crowdfunders are going to give the money away or going to want to lend it over as long a term as the mortgage which means 1 of 2 things.

1. Under affordability criteria the lending is now even less affordable given that the borrower now has an additional debt to repay.

Or.. ...

2. The estate agent industry is somehow suggesting that the borrowers lie about where the money comes from and hide the debt from the lender. In order for this to stand up to a credit check there would have to be no formal credit agreement in place in which case the debt is no more enforceable than a gamvling debt and there is actually nothing to stop the borrower defaulting on their crowdfunded loan the second they have the cash.

I suspect 2 is the more likely intended option (as 1 would make lenders less not more likely to lend).

So we effectively have an estate agents industry rag advocating widespread mortgage fraud by encouraging prospective house buyers to use a dodgy loan to inflate their deposit. Very ethical, but then would you expect anything less?

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  • 293 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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