Intergenerational mortgage Prop arrives

[hurlerontheditch]

 

[Mikhail Liebenstein]

Just heard this on Sky News too. 

This is basically a long term rental and return to multi-generation living - perhaps ending in feudalism. 

Maybe wedding dowries will return too. After all women and children cost money to keep and so only fair the brides family make a contribution, even if she is also looking after the in-laws. 

 

 

[hurlerontheditch]

2 minutes ago, Mikhail Liebenstein said:

Just heard this on Sky News too. 

This is basically a long term rental and return to multi-generation living - perhaps ending in feudalism. 

Maybe wedding dowries will return too. After all women and children cost money to keep and so only fair the brides family make a contribution, even if she is also looking after the in-laws. 

 

 

Bonkers 

[Blobsy]

D-e-s-p-e-r-a-t-i-o-n

[Si1]

What do we think the chances of it happening are??

[hurlerontheditch]

1 minute ago, Si1 said:

What do we think the chances of it happening are??

Slim but there is a chance. The sheeple

have been fed bricks and mortar for generations.

[Si1]

https://www.telegraph.co.uk/politics/2022/07/01/fifty-year-mortgages-pass-children-new-plan-boost-home-ownership/

Even the telegraph isn't positive.

[TheResponsibleHouseBuyer]

Well they had to find another prop for HPC somewhere, might as well be this.

I KNEW THIS WAS COMING!

it was either mortgage holiday (short term to defeat inflation/rise IRs) or extending the mortgage period.

There is always a tool in the toolbox for these governments to increase HPI.

[Shamus]

So angry to hear this. It's totally ********. Will this almost double current prices - insane! 

You will own nothing and be happy... 

Edited July 1, 2022 by Shamus
.

[Bruce Banner]

Not this again .

It comes up every few years and the estate agents, builders, and others who make their living off the housing market, push like mad to reignite a falling market... it never works though, just fizzles out and gets forgotten until the next time they get desperate.

It's never been pushed by a PM before though, but we've never had a PM like BJ before and hopefully we never will again.

[TheResponsibleHouseBuyer]

3 minutes ago, Shamus said:

So angry to hear this. It's totally ********. Will this almost double current prices - insane! 

You will own nothing and be happy... 

What it is saying is that if you are filthy rich (or a bank or investment arm of a kind) just buy up as many houses or land as you can then sell it back to someone and you will have a lifetime of guaranteed rent to be paid. You can pick when you want the increase. 

So lets remove BTL landlords but replace them with corporate BTL landlords that will choke everyone for many years.

[Mikhail Liebenstein]

27 minutes ago, Si1 said:

https://www.telegraph.co.uk/politics/2022/07/01/fifty-year-mortgages-pass-children-new-plan-boost-home-ownership/

Even the telegraph isn't positive.

Well they are the most anti inheritance tax of the papers. This is a form of regressive inheritance tax.

[Mikhail Liebenstein]

3 minutes ago, Bruce Banner said:

Not this again .

It comes up every few years and the estate agents, builders, and others who make their living off the housing market, push like mad to reignite a falling market... it never works though, just fizzles out and gets forgotten until the next time they get desperate.

It's never been pushed by a PM before though, but we've never had a PM like BJ before and hopefully we never will again.

He needs donations!!!!!

Cleary Carrie has drained him dry.

 

 

[Habeas Domus]

It does show that someone is getting desperate.

For this to work, either the parents have to conveniently die just as the children are ready to start their own family, or more likely have 3 generations living under one roof until they snuff it.

[bluegnu]

Hahah, pretty much every reply to that tweet is panning it 😄

[btd1981]

"one day, son, all of this won't quite be yours either"

[BaldED]

Has has been so eloquently put in the twitter feed.

Jesus. F*ucking. Christ.

[SE10]

5 hours ago, Si1 said:

What do we think the chances of it happening are??

Not much would be my take

 

 

[henry the king]

7 hours ago, Bruce Banner said:

Not this again .

It comes up every few years and the estate agents, builders, and others who make their living off the housing market, push like mad to reignite a falling market... it never works though, just fizzles out and gets forgotten until the next time they get desperate.

It's never been pushed by a PM before though, but we've never had a PM like BJ before and hopefully we never will again.

Boris just says things. It means nothing. He was talking about benefits to houses in his speech last time. Where did that go? Nowhere. This will go nowhere either because it probably isn't workable. 

Another thing he said is they are looking at just building loads of houses quickly on government land. Again, totally unworkable due to labour shortages and material shortages. 

But they are just considering everything. They obviously want props, but currently they have nothing concrete coming so there is nothing to worry about. And the remove of HTB is a MASSIVE prop being removed. So unless it is replaced by something very large, it will cause prices to go down anyway.

Remember the government is broke. That is why all these props are just smoke and mirrors. The props to worry about are like HTB where it commits money. Money into the system is what will cause prices to go up. We are too close to 2008 for banks to get told "lend more in this risky way" and they say "yeh sure". They just won't do it. They think housing is going down and we are going into recession. They aren't going to lend out shitloads of money in dodgey mortgages just because Boris says they can.

[skinnylattej]

7 hours ago, Mikhail Liebenstein said:

 

Cleary Carrie has drained him dry.

 

 

Careful!

[Lucky Larry]

Last roll of the dice , we've increased the multiples people can borrow , reduced rates to zero so they can make the repayments and now we will extend the repayment time by 100% and make their children pay it. Unfortunately mortgages have helped balance the bankers books by making an IOU a tier 1 asset , fortunately if this is all they can come up with then the can has met the end of the road, unfortunately it will take a few banks down as well.

[DarkHorseWaits-NoMore]

I'm surprised MIRUS hasn't made a come back yet. Get the taxpayer to subsidise mortgage repayments again, helping all those struggling distressed Tory voting home owners lenders and builders.

[LetsBuild]

So as well as all the credit checks, presumably the bank are now going to want checks from the fertility clinic?

Unable to have kids or unable to adopt? No shelter for you!

[JB1973]

Isn't a really long term mortgage basically as close to interest only as possible for normal residential without being "interest only"? BTL with the bank as landlord.

[rantnrave]

21 minutes ago, Lucky Larry said:

Last roll of the dice , we've increased the multiples people can borrow , reduced rates to zero so they can make the repayments and now we will extend the repayment time by 100% and make their children pay it. Unfortunately mortgages have helped balance the bankers books by making an IOU a tier 1 asset , fortunately if this is all they can come up with then the can has met the end of the road, unfortunately it will take a few banks down as well.

This. Intergenerational mortgages are in effect the end of the line - the last prop after everything else has been done. I believe these were implemented in Japan just before the bubble there massively popped. It does however leave absolutely no doubt that the current government views house price falls as a very serious electoral liability. As said in another post here, they've not got the funds to throw at the market though.