Tories float plan for more long-term mortgages to boost house buying

[Eddie_George]

The Conservatives are working on a series of schemes to help first time buyers to be unveiled at the Budget in March.

The Times reports that Housing Secretary Michael Gove says there will be “definitely” be schemes aimed at boosting demand from younger would-be buyers.

These include much longer term fixed rate mortgages with government guarantees against default - similar to loans currently available in the United States.

Gove tells the paper: “We have been asking the question, how can we ensure that people with decent incomes who are finding it difficult because of the scale of deposit required to get on the ladder?

“I don’t want to pre-empt anything but it’s about looking at some of the rigidities in the mortgage market that they don’t have in other jurisdictions.”

Other options include a new version of Help To Buy, which used to offer first time buyers equity loans for up to 40 per cent of the purchase price of properties with the need for only five per cent deposits.

The Times also speculates that the government is considering changes to stamp duty to help FTBs further.

YouGov polling for The Times shows only 11 per cent of 24 to 49 year olds say they will vote Conservative at the next election; 43 per cent of over-65s say they will.

Meanwhile the government used the New Year break to announce that the Budget will take place on March 6.

Chancellor of the Exchequer Jeremy Hunt has commissioned the independent Office for Budget Responsibility to prepare an economic and fiscal forecast to be presented to Parliament on the same day.

Just before Christmas the government reported that the UK economy shrank between July and September 2023. Gross domestic product contracted by 0.1 per cent in the third quarter.

 

https://www.introducertoday.co.uk/breaking-news/2024/1/tories-float-plan-for-more-long-term-mortgages-to-boost-house-buying

 

Edited January 3 by Eddie_George

[Si1]

Hahahaha. Oh sh#t.

[Social Justice League]

The current Tories party, which isn't Tory in any way, is in full on retarded desperation mode.

Astonishing to see this level of complete meltdown, but I guess this is the end result of bringing up 'politicians' like Sunak in Thatchers Britain.

Edited January 3 by Social Justice League
Typo

[MARTINX9]

Michael Gove has a habit of making announcements to the media - which never materialise as actual policy as he hasn't cleared them with No10 and No11. So we shall see.

Of course by now most young people have seen through these schemes - which don't help FTBs but make it harder for them to buy as they just drive up prices. 

And in the end people on average wages just can't avoid the prices anyway. 

So too little too late - they ain't voting Tory.

Edited January 3 by MARTINX9

[Maghull Mike]

Too late, just like stopping the boats

[Blobsy]

Who cares what they say. They are a busted flush.

[winkie]

1 hour ago, MARTINX9 said:

Michael Gove has a habit of making announcements to the media - which never materialise as actual policy as he hasn't cleared them with No10 and No11. So we shall see.

Of course by now most young people have seen through these schemes - which don't help FTBs but make it harder for them to buy as they just drive up prices. 

And in the end people on average wages just can't avoid the prices anyway. 

So too little too late - they ain't voting Tory.

The Tory party don't care about young people.....no political party talks about young people, the education debt they hold, their housing problems, availability  and affordability, the jobs that either don't pay or dead end jobs with few prospects.......millions of young people still living with parents unable to live in the system they are priced out of, priced out of having own stable family life...... highly skilled, highly paid jobs......not enough to go around,  no future, no hope.....no help.....help that is not wanted, why should having help be the only way out of the mess?

 

[Stewy]

5 hours ago, Maghull Mike said:

Too late, just like stopping the boats

In which case people will rush to take advantage of what could be a short-term scheme, before it's too late and Labour pull it? 

[onlooker]

6 hours ago, winkie said:

The Tory party don't care about young people.....no political party talks about young people, the education debt they hold, their housing problems, availability  and affordability, the jobs that either don't pay or dead end jobs with few prospects.......millions of young people still living with parents unable to live in the system they are priced out of, priced out of having own stable family life...... highly skilled, highly paid jobs......not enough to go around,  no future, no hope.....no help.....help that is not wanted, why should having help be the only way out of the mess?

 

No politician cares about young people. If they did, they would not be so enthusiastic to import more competition for housing, education, health and maybe even jobs.

Edited January 4 by onlooker

[winkie]

6 minutes ago, onlooker said:

No politician cares about young people. If they did, they would not be so enthusiastic to import more competition for housing, education, health and maybe entente jobs.

Who are the politicians working for, whose best interests do they pander to......is it money and power talking?......is there another way or is this the only way?

[onlooker]

2 minutes ago, winkie said:

Who are the politicians working for, whose best interests do they pander to......is it money and power talking?......is there another way or is this the only way?

It’s the easy way, in the face of vociferous left wing agitation. Politicians always choose the easy way over any other.

[NoHPCinTheUK]

If they implement a new HTB I will jump on that boat. Sorry, but this time around I won’t just pay the bill. 
 

 

[Stewy]

9 minutes ago, NoHPCinTheUK said:

If they implement a new HTB I will jump on that boat. Sorry, but this time around I won’t just pay the bill. 
 

 

Very sensible - rather than complaining about the unfairness of the world for two decades 😉

✓✓✓

[winkie]

45 minutes ago, onlooker said:

It’s the easy way, in the face of vociferous left wing agitation. Politicians always choose the easy way over any other.

.......best not to divide people into 'wings' begin to lose your argument, most people are not polarised one side or the other, they sit somewhere  in the middle, they only want the best for the country, want the country to work, people to reach their potential telos....don't put them in boxes, compartmentalise. 

Edited January 4 by winkie

[onlooker]

44 minutes ago, winkie said:

.......best not to divide people into 'wings' begin to lose your argument, most people are not polarised one side or the other, they sit somewhere  in the middle, they only want the best for the country, want the country to work, people to reach their potential telos....don't put them in boxes, compartmentalise. 

Contrariwise, I think most people are either left or right wing in their views and as a result criticise the other side, and excuse their own side on pretty well every issue.

Immigration however is an issue which cuts across this, in that both right and left wing leaders favour it, though right wing leaders must say they don't. While right and left wing supporters are against it, though left wing footsoldiers feel they must say they do support more of it.

[Armus]

They’re not getting back in to power so it’s pretty much irrelevant what they say, unless Labour implement the policies.

[winkie]

13 minutes ago, onlooker said:

Contrariwise, I think most people are either left or right wing in their views and as a result criticise the other side, and excuse their own side on pretty well every issue.

Immigration however is an issue which cuts across this, in that both right and left wing leaders favour it, though right wing leaders must say they don't. While right and left wing supporters are against it, though left wing footsoldiers feel they must say they do support more of it.

That is your opinion and you are entitled to that, free country, free will......unless can provide verified and checked data, would be interesting to see if it exists, but still only a  sample of a few people.......no one right or wrong way......no black nor white, just shades of grey.

[14stFlyer]

11 minutes ago, onlooker said:

though left wing footsoldiers feel they must say they do support more of it.

I don’t.  I like to see high levels of migration into and out of the U.K. and think this healthy for our society. However, I am quite happy with the idea of Net Zero migration overall (we control inward migration to match outward) and most of the left wingers I talk to are supportive of this view.  I think the sides to this argument are shifting asi t becomes more and more obvious who gains from large scale net migration, and who loses.   

[Staffsknot]

The Tories are trying the same daft policies over and over again.

This does not help young people at all but is the 'we need an election bribe' tripe

[Pebbles]

3 hours ago, NoHPCinTheUK said:

If they implement a new HTB I will jump on that boat. Sorry, but this time around I won’t just pay the bill. 
 

 

If some people on this forum complaining about being priced out had done the same when the first htb was announced then there would be less complaints now. This is yet again Another one of my predictions coming true in demand side boosts for the market. I think people who are still expecting significant nominal falls now are quite frankly barking mad. Pre election bribes a government incoming who wanted support for mortgages last year falling interest rates and falling inflation. I hope I'm wrong I've got the cash to take advantage but I can't see much if any falls now.

[cnick]

We're from the government and we're here to help......

Rough translation......We're from the government and we're here to take all necessary steps to enslave you.

?

[PeanutButter]

12 hours ago, Blobsy said:

Who cares what they say. They are a busted flush.

when will the big housing developers start offering bungs to the labour party?

[Casual-observer]

38 minutes ago, Pebbles said:

If some people on this forum complaining about being priced out had done the same when the first htb was announced then there would be less complaints now. This is yet again Another one of my predictions coming true in demand side boosts for the market. I think people who are still expecting significant nominal falls now are quite frankly barking mad. Pre election bribes a government incoming who wanted support for mortgages last year falling interest rates and falling inflation. I hope I'm wrong I've got the cash to take advantage but I can't see much if any falls now.

Not saying you're wrong but you still need a growing healthy economy behind these long term mortgages for a head of steam to developed for HPI and that's the key element I don't see on the horizon. 

When HTB was first launched, House prices didn't immediately take off then either

 

 

[Unmoderated]

11 hours ago, winkie said:

The Tory party don't care about young people.....no political party talks about young people, the education debt they hold, their housing problems, availability  and affordability, the jobs that either don't pay or dead end jobs with few prospects.......millions of young people still living with parents unable to live in the system they are priced out of, priced out of having own stable family life...... highly skilled, highly paid jobs......not enough to go around,  no future, no hope.....no help.....help that is not wanted, why should having help be the only way out of the mess?

Because the don't vote. 

5 hours ago, onlooker said:

No politician cares about young people. If they did, they would not be so enthusiastic to import more competition for housing, education, health and maybe even jobs.

If the young voted then they would get taken care of. 

4 hours ago, winkie said:

Who are the politicians working for, whose best interests do they pander to......is it money and power talking?......is there another way or is this the only way?

Not really. Just votes. If you're in a group with a lower likelihood of voting you tend to not get taken care of. 

Abolishing or even means testing state pension would be political suicide even if you showered the money saved on take cuts and free uni fees. 

4 hours ago, NoHPCinTheUK said:

If they implement a new HTB I will jump on that boat. Sorry, but this time around I won’t just pay the bill. 

+1. I was complaining to friends doing this in 2013. I finally bought 4 years later after fairly big reflation of the market. 

3 hours ago, onlooker said:

Contrariwise, I think most people are either left or right wing in their views and as a result criticise the other side, and excuse their own side on pretty well every issue.

Immigration however is an issue which cuts across this, in that both right and left wing leaders favour it, though right wing leaders must say they don't. While right and left wing supporters are against it, though left wing footsoldiers feel they must say they do support more of it.

I used to think this but now I think everyone is essentially thinking the same thing. Really it comes down to fairness. Left-wingers complain life isn't fair and we should support those less fortunate. Right-wingers complain they've worked hard to get their money and it's not fair they have to pay so much tax - as a basic example. 

Learning this and seeing this perspective has helped me enormously in political debates.

3 hours ago, Armus said:

They’re not getting back in to power so it’s pretty much irrelevant what they say, unless Labour implement the policies.

Hmmm. I wouldn't count the chickens just yet.

2 hours ago, Staffsknot said:

The Tories are trying the same daft policies over and over again.

This does not help young people at all but is the 'we need an election bribe' tripe

imho all parties bribe the electorate. Labour bribe the poor and the public sector. Tories, in theory, bribe the older voters, homeowners and wealthy... though can't really call them the party of financial responsibility anymore given the debt pile they've left. 

Word out there is there's a very big income tax adjustment (higher rate threshold lifting to £100K) coming in the March budget. It salts the earth for future spending if Labour win and actually plays to Starmer's call for tax thresholds to increase with inflation. This is worth £100/month additional take home to anyone on £60K, £300 if £80K and £500 if on £100K. I imagine that would certainly buy a lot of votes. 

I know people who are staunch anti Tories but money talks. One, whom I am very close to at work, has kids in private school and earns a lot! Labour will jack her school fees by 20%. Tories will (possibly) give her £500 a month more.....

[MARTINX9]

4 hours ago, Armus said:

They’re not getting back in to power so it’s pretty much irrelevant what they say, unless Labour implement the policies.

But the question is will Labour keep the proposals in place - including help to buy and guaranteed taxpayer backed 35-40 year mortgages.

 

Its the sort of thing Rachel Reeves has previously indicated she was very keen on - even Jeremy Corbyn didn't have the courage to oppose the shameful help to buy scheme. A scheme which basically meant the govt providing a temporary subsidy to boost new build prices by 20% (40% in London). Essentially a massive transfer backed by the govt from first time buyers to developers and their shareholders. It was an evil policy!