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OnlyMe

Cml Calls For Policy Changes To Assist Ftbs

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Market must be knackered again. This pissant organisation who represent members that are the cause of the problem always comes out with this rubbish when the latest set of market skewing activities begin to backfire.

http://www.qck.com/20177.html?searchsite=news-now

Flexible housing options are the most effective means to get first-time buyers (FTBs) onto the property market, according to the Council of Mortgage Lenders (CML).

Last week saw the CML state that homeownership may become increasingly difficult for people looking to purchase their own property due to the combination of student debt and house prices.

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No disrespect to yourself, Only Me, but I can't be bothered clicking the article.

Does anyone else feel this way by now, about this stuff? :unsure:

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Megaflop,

No problem, I will just highligt one sentence.

In order to help solve this problem, the CML is urging the government to "work with lenders to develop innovative ways of helping young people who want to buy their own home".

Translated this means "owning" less for more money, and paying more money into the lenders' back pockets in interest.

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Allow more exotic loans -- prices will rise further (and lenders will make more money), then you have the same problem again.

Allow fewer exotic loans (i.e. regulate lending more) and prices will fall, and the idea of the "struggling FTB" will fade away.

Bet they aren't suggesting that though.

frugalista

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Someone in the VI area told me to sit tight and not go for a shared ownership scheme as the mortgage lenders would soon becoming up with their own equivalent of shared-ownership to help FTBs. I.e. the mortgage company would own the percentage of the property (hah, in addition to the loan payments).

Heaven help us if that's the way it goes.

VI predicted would be around autumn this year it would be announced.

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Someone in the VI area told me to sit tight and not go for a shared ownership scheme as the mortgage lenders would soon becoming up with their own equivalent of shared-ownership to help FTBs. I.e. the mortgage company would own the percentage of the property (hah, in addition to the loan payments).

Heaven help us if that's the way it goes.

VI predicted would be around autumn this year it would be announced.

Your either BUY a home or you DONT!

These shared ownerships are a red herring.

They only every quote your purchase price, NEVER including the RENT part of it.

They never show how you can possibly afford to buy the rest of it (oh yeah! Your 2% wage increase when running costs are more like 6%)

From what I can gather (someone correct me if Im wrong) - When the price of the property increases, the cost of buying the other half increases.

They then say that RENT is dead money and are taking rent from you!!!

If people go for that, then they deserve everything they get. Stupidity at this level is not acceptable!!

TB

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Maybe they should offer FTBs mortgages that are no-profit to the banks.

Then they could give all FTBs strict 3.5x income mortgages that are at a lower rate, and then just to make sure it works they could double the cost of all lending to BTLs.

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Someone in the VI area told me to sit tight and not go for a shared ownership scheme as the mortgage lenders would soon becoming up with their own equivalent of shared-ownership to help FTBs. I.e. the mortgage company would own the percentage of the property (hah, in addition to the loan payments).

Heaven help us if that's the way it goes.

VI predicted would be around autumn this year it would be announced.

This sounds similar to a government initiative that is due to come on line this autumn. I think the buyer will buy 70% (?) of the property and the rest will be owned 50/50 split between the mortgage lenders and the government.

It is a hybrid of exisitng shared ownership schemes - but the money will be limited and directed at priority groups.

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This sounds similar to a government initiative that is due to come on line this autumn. I think the buyer will buy 70% (?) of the property and the rest will be owned 50/50 split between the mortgage lenders and the government.

It is a hybrid of exisitng shared ownership schemes - but the money will be limited and directed at priority groups.

We are witnessing the end of homeownership in this country. We're switching to bank ownership.

The sad thing is that most people won't realise this until they reach 65 and find they have to sell their 'share' of the house back to the bank to pay their rent. :(

It's a beautiful little scam when you think about it. Capitalist exploitation dressed up as socialist redistribution.

If we could harness the energy generated by George Orwell spinning in his grave, we'd have an answer to the energy crises too. :huh:

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This woe is me pleading from the VI's is yet another indicator IMHO that we are at a market top, as affordability is out the window for a lot of people. What happens to markets when affordability is a problem, why it comes down of course...it ain't rocket science.

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how richly ironic!

there was a small piece in the metro yesterday morning which revealed that the cml was predicting that houseprices would rise by 5.2% in the next 12 months.

i wonder how they fail to see the link between that and the dearth of first time buyers in the current market..? :huh:

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http://www.ifaonline.co.uk/public/showPage.html?page=329589

Mortgage lending stable - CML Friday 19th May 2006: 12:00

By Matthew

West Gross mortgage lending totalled £25.1bn in April - the highest April lending figure on record

..........

They certainly have made monkies out of the Bank of England, not difficult I know.

It has got to the point where there has to be a concerted effort to talk up inflationary problems (the problems having exisied for years), which has started the trashing of the stock market, again.

Shame all concerned can't keep their gobs shut and run sound monetary lending policies in the first place, maybe then business would invest and prosper rather than being knocked from pillar to post.

Edited by OnlyMe

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  • 338 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
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      • up 5%



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