Sunday, Sep 10, 2006

Can't afford a mortgage on your own? Ask a friend...

The Times: First-time buyers offered group home loans

More than three quarters of those still living with their parents said they would consider clubbing together with family and friends to buy a home of their own, according to HSBC.
The bank said it had seen a 50% rise in group mortgage applications this year alone after 93% of those seeking to buy their first home said affordability was a problem.

Carina Kemp, head of mortgages at HSBC, said: "First-time buyers are thinking more laterally about how to get on the ladder. More people are clubbing together with friends or family to buy a home and this is a trend we expect to continue."

Also reported at: http://scotlandonsunday.scotsman.com/uk.cfm?id=1335892006

Posted by little professor @ 06:24 PM (559 views)
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19 Comments

1. tyrellcorporation said...

'clubbing together to buy a home of their own' - surely a glaring contradiction!!!

Sunday, September 10, 2006 07:33PM Report Comment
 

2. uncle chris said...

So what happens when one wants to sell but the other 4 don't, are they trapped into the mortgage forever or will the others lose out and have to sell. Suppose one gets married and wants to move their spouse and children in.There is so much potential here to get trapped into an agreement that is totally inflexible to what the future may bring. I cannot believe the banks are touting this as the way forward, but then again I can't believe a great deal that the banks are doing.

Sunday, September 10, 2006 08:21PM Report Comment
 

3. J. B. M. C. said...

Articles like this simply reinforce my belief that we are reaching the end of the bubble.

Sunday, September 10, 2006 09:20PM Report Comment
 

4. japanese uncle said...

"Nature called me! Please!"

"Sorry mate, it's taken."

The aftermath of this conversation is simply too horrible to envisage.

Sunday, September 10, 2006 10:31PM Report Comment
 

5. This comment has been removed as it was found to be in breach of our Blog Policies.

 

6. Micthemike said...

what a joke the whole thing, the lenders must be really getting desperate,anything to keep the pyramid moving or seeming too, anybody with half a brain would know that the market is way over the top, why would they wont to get on to the so called property ladder.

Monday, September 11, 2006 12:59AM Report Comment
 

7. European-bear said...

Supply and demand. When there is shortage of housing (as in the UK) it goes to those that can afford to buy. The banks by allowing such silly schemes will only suceed in putting the price up, not really help anyone and expose borrowers to all sorts of problems. streching the lending crieria as HPI happens from the tradition x3 salary is one of the most important causes of thge present high prices. If the banks had not, the prices would have stopped going up a long time ago! Ultimately, I am hoping that a bank or two goes under when the crash happens. That may prevent such stupidness happening again. If you owe the bank a million, you should be worried. If you owe the bank a 100 million, the bank should be worried.

Monday, September 11, 2006 07:12AM Report Comment
 

8. Geed said...

Clearly the UK is full of "less than half brains".

Monday, September 11, 2006 07:44AM Report Comment
 

9. waitingfor hpc said...

i agee. this is a strange plan which is short term like all the current thinking in the housing market. The irony is the cliche ' in the long term you can not go wrong with housing'.

Monday, September 11, 2006 08:25AM Report Comment
 

10. george monsoon said...

Stupid is as stupid does. Correct me if I am wrong, but didn't this kind of thing raise its chewing-gum head just before the last crash in the early 90's ??

Three quarters of those living with their parents? That is a bold suggestion, i.e. that three quarters of all adults living with their parents are financial morons.

Monday, September 11, 2006 09:17AM Report Comment
 

11. inbreda said...

I had thought that HSBC was a fairly safe place to keep my savings, but after reading this I think I'll have to move the lot.

Monday, September 11, 2006 01:04PM Report Comment
 

12. Nearly30 said...

Being nearly 30 myself - still living in my parents pocket [house] - albeit only to save on housing cost (I pay for everything else).
I can tell you that after nearly a decade of being desperate to be independant, the "three quarters of all adults living with their parents are financial morons" is not an easy thing to take or even accept!!! The HPC wil come - but what is the trigger - a recession I don't doubt - which means for my generation even more hardship and no homeownership - you see we are the ones most likely to be in short-term low wage contract work. Aye and there's the rub!!! It is a no way out situation!! We either stay put and save - for what? Or try and move on and - dare I say it - have a life!!! If my friends and I go through another decade like the last we will all go bonkers!!!

For the record - we are not financial morons - we are the generation you get when you saddle them with 20,000 debt at 21, low wages, contract work, no career-development, no pension, no home-ownership - and as a consequence any extra money earned is too low to invest [and there is nothing worth investing in] is blown on useless cr@p, just to cheer ourselves up a bit!!!!

P.S. My generation's parents are SKINs - buying all extra housing stock for buy-to-lets for their pensions!!! Retiring at 60!!!

Cheers Tony & Gordon!!!!

Monday, September 11, 2006 09:34PM Report Comment
 

13. indiablue19 said...

Inbreda...

Point taken. Tell me where you find that looks safe. HSBC seem to have lost the plot.

Monday, September 11, 2006 10:28PM Report Comment
 

14. inbreda said...

Think you might be asking the impossible India

The more I think about it the more exposed I think the entire banking system is. It was months ago when I first read a post on HPC that predicted total meltdown in the banking system. All sounded paranoid at the time, but now I'm not so sure.

Personally I've bought gold, sold most shares except India and Japan allshares, and I've started trading currency selling USD for Thai Baht. Keeping cash, and (just starting) spreading my savings around several banks. Seems a bit desperate, but I can't think of anything else to do.

Tuesday, September 12, 2006 12:08AM Report Comment
 

15. Gothin said...

Can anybody give a hint as to the best way to invest in Gold (I realise nobody can give investment advice)?

I don't believe banks will be unsafe in the future, just more concerned about the effect of hidden inflation, gold tends to do well in such circumstances (as it already has).

Tuesday, September 12, 2006 09:30AM Report Comment
 

16. miniftse said...

You hit the nail on the head Nearly30, I've always thought having children is a selfish act, and when the children are screwed by their parents to the extent they've been by the baby boomers, I think my reasoning is justified; god help the next generation if we do to them what the baby boomers did to us!

Tuesday, September 12, 2006 09:39AM Report Comment
 

17. george monsoon said...

Nearly30 - sorry mate, my comment was very badly worded. I was trying to point out the flaw in this articles argument that over three quarters of people who live with their parents would entertain the idea of joint ownership. I myself rent, unhappy with the fact that I may never ever be able to afford a home of my own.

The mention of joint ownership makes me feel like the VI's are just rubbing it in a little bit harder.

Tuesday, September 12, 2006 10:06AM Report Comment
 

18. Nearly30 said...

George Monsoon - no worries - just can't believe how modern politics and economics can bankrupt an entire generation and expect them to mortgage their future from aged 18 an expect everything to be all ok!!

Recent reports have suggested my generation freeze their good eggs - just in-case they don't get their life sorted before 40!!! What has this country (UK) come to???

Don't know what to make of the home share idea or freezing of good-eggs (who comes up with these ideas??? Not liberals!!!) - but I guess it's an modern economic symptom - collectivism for the disenfranchised professional poor - do they want us in an economic pogrom??? (a strong metaphor i know)

Tuesday, September 12, 2006 08:40PM Report Comment
 

19. nearly30 said...

George Monsoon - no worries - just can't believe how modern politics and economics can bankrupt an entire generation and expect them to mortgage their future from aged 18 an expect everything to be all ok!!

Recent reports have suggested my generation freeze their good eggs - just in-case they don't get their life sorted before 40!!! What has this country (UK) come to???

Don't know what to make of the home share idea or freezing of good-eggs (who comes up with these ideas??? Not liberals!!!) - but I guess it's an modern economic symptom - collectivism for the disenfranchised professional poor - do they want us in an economic pogrom??? (a strong metaphor i know)

Tuesday, September 12, 2006 08:40PM Report Comment
 

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