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Will Boris go through with his 95% mortgage prop?


Will Boris go through with his 95% mortgage prop?  

81 members have voted

  1. 1. Will he actually do it or will be pull out?

    • Yes he will
      55
    • No he won't
      26


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I think it will fall by the wayside as there are many other plates to juggle, and this requires overhauling the system in the face of significant opposition. Far too much detail for Boris to deal with. Great article in The Telegraph this morning on this - quote:

https://www.telegraph.co.uk/property/uk/boris-johnsons-madcap-first-time-buyer-plan-wont-get-ground/

”But the real problem is that lenders must play ball for it to work, and given the current uncertainty in the market, that seems unlikely. The plan relies on making banks give mortgages to people they don't want to lend to. You can create rules that stop banks lending, but you can't make rules that force banks to lend.

In any case, the Government doesn’t have the power to stop stress testing. That is down to the Bank of England, which may not be as keen to expose lenders to more risky lending while memories of the collapse of Northern Rock are still relatively fresh in the mind.

It seems that as lenders withdrew mortgages from the market, the system was working as it was designed to. And by the time this policy gets off the ground, lenders may well have started lending to these kinds of buyers again.”

 

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Yes, I think it will. It'll be the sugar pill to wash down loads of other bad shit though.

Politically this could be spun in a way that is very difficult to criticise. That means not making it available to the masses.

What if it simply became a perk for nurses/teachers? The banks would be happier, their loans are guaranteed but people in those types of careers generally have bigger job stability.

It would also be a hidden incentive to recruit people without massive payrises/disincentive for people to leave (if the support was only valid when you are employed).

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Its waffle.

Not only was he waffling about 95% mortgages, he was also waffling about ~30 year fixed mortgages.

The longest off the shelf mortgage Ive seen in the UK has been 10 years.

 

 

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We are simply spending more money than we earn, people take more in pensions and health services than they pay in..... all are ever more dependent on the public purse both those with plenty along with those with little......all holding their hands out for more "please sir"......give an inch, now want the full mile and looks like will get it........lower interest rates to zero, then print more money borrowing from the future, spend now default later.......does the future know what the present is adding to the tab they will be in hock for......in injin's  infamous words, printy, printy.

the currency slip sliding away. ;)

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No i very much doubt it ...I didnt take it seriously when I heard it over the weekend.

This lot have a habit of leaking ideas to test the water and I doubt that this got a good reception. Besides Sunak seems determined to start raking the money back into the Treasury. I believe that Sunak is part of a Thatcherite cabal that includes Patel and Sharma...I doubt that Boris is in a position to start receiving resignation letters from two of them at least...especially Sunak.

It is better that they take their HPC medicine early and blame it on the pandemic, that way they can have a buoyant economy at election time.

Maybe he was just trying to look sympathetic to house owners.

 

Had they not panicked and spent like drunk sailors over the past 6 months; that would be a different story!

 

However, stranger things have happened.

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We are simply spending more money than we earn, people take more in pensions and health services than they pay in..... all are ever more dependent on the public purse both those with plenty along with those with little......all holding their hands out for more "please sir"......give an inch, now want the full mile and looks like will get it........lower interest rates to zero, then print more money borrowing from the future, spend now default later.......does the future know what the present is adding to the tab they will be in hock for......in injin's  infamous words, printy, printy.

the currency slip sliding away. ;)

A wage is a claim on wealth against work done.

Debt is a claim on wealth against work yet to be done.

What happens when the future is suddenly very uncertain...not so much wrt an individuals viability, but as to whether the old environment will still exist?

What if the old "Normal" has gone forever...what happens to debt then?

 

 

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It is better that they take their HPC medicine early and blame it on the pandemic, that way they can have a buoyant economy at election time.

Sunak, although being a puppet for Cummings, has come out of this with serious credability - he could become a stalking horse against BoJo - but only when Cummings deems it fit.  Sunak's real test will be when he breaks free from Cummings.

I agree about having an early HPC, have said get it done within 2010 and 2015 and get a recovery going by the next GE. The problem is Tories have long memories of the kicking they got from Labour on the 90s crash (16% interest rates, -ve equity etc).

They could easily blame COVID and use the post virus bounce back to engineer GE growth.

But no the id*ot won't..

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A wage is a claim on wealth against work done.

Debt is a claim on wealth against work yet to be done.

What happens when the future is suddenly very uncertain...not so much wrt an individuals viability, but as to whether the old environment will still exist?

What if the old "Normal" has gone forever...what happens to debt then?

 

 

+1

The value of the Debt is either written off, so that the future work retains value - giving Deflation

The value of the Debt is removed by 'printing', so that the future work is now against multiple lots of paper - Inflation

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Sunak, although being a puppet for Cummings, has come out of this with serious credability - he could become a stalking horse against BoJo - but only when Cummings deems it fit.  Sunak's real test will be when he breaks free from Cummings.

I agree about having an early HPC, have said get it done within 2010 and 2015 and get a recovery going by the next GE. The problem is Tories have long memories of the kicking they got from Labour on the 90s crash (16% interest rates, -ve equity etc).

They could easily blame COVID and use the post virus bounce back to engineer GE growth.

But no the id*ot won't..

Cummings is one more indiscretion from obscurity. His hubris will destroy him in the near/mid term.

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+1

The value of the Debt is either written off, so that the future work retains value - giving Deflation

The value of the Debt is removed by 'printing', so that the future work is now against multiple lots of paper - Inflation

Does that work with multiple variables?

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Cummings is one more indiscretion from obscurity. His hubris will destroy him in the near/mid term.

Don't underestimate him.  With the Civil Service changes and 'consolidation' of SPADS under him, he doesn't need a high profile. Obscurity suits him.

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How much effect would 95% mortgage boost actually have since the income multiplier is going to be the key point of affordability, say at best you get 5x income on a 95% and an average income of 27k gives you a max mortgage of 135K on 142K house. to buy uk average 235k house you'd need a household income of 45K

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What do they mean by this, if it's HTB, perhaps with the new rules on regional price caps and FTB only which come in next year, but available on existing property, quite possibly. The long term bit would presumably require the government to lend to banks at fixed rates over an equally long period.

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every comment on every article is negative.  

was it the same for HTB ?

 

 

Other than the VIs I think so...I recall many scaving comments from respected sources.

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every comment on every article is negative.  

was it the same for HTB ?

 

 

One expects people recall that HTB actually just lead to a help to buy yachts for building execs - £110m bonus being the most extreme example

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  • 433 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% +
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      • Even
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      • up 5%



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