Friday, May 23, 2008

Adam Champion, from charity New Homes Mortgage Helpline, says: “The message to those on the edge of the market is why rent when you can buy?

Galliford Try Homes tries to lure house buyers

Galliford Try Homes is launching a range of initiatives to encourage hesitant buyers to purchase a new home. The home builder is linking up with New Homes Mortgage Helpline. The joint venture is designed to raise awareness of mortgage deals and developer incentives still available to prospective home buyers. Among the incentives is The Easy Start programme, which allows first-time buyers to purchase homes for 75% LTV, with Galliford deferring the remaining 25% to a maximum value of £75,000 for up to 10 years interest free.

Posted by jack c @ 01:06 PM (2174 views)
Please complete the required fields.



15 thoughts on “Adam Champion, from charity New Homes Mortgage Helpline, says: “The message to those on the edge of the market is why rent when you can buy?

  • developers in Epsom have been doing this for months, this is nothing new and should be seen as a private version of the governments b*llsh*t schemes. Wait a few months and the property will be worth 75% of what it is now and you will own it all now, not in ten years. PATHETIC

    Reply
    Please complete the required fields.



  • Why rent when I can buy?

    I can rent for 3.7% with no risk to my capital, or I can buy for about 7.8% with considerable risk to my capital.

    Reply
    Please complete the required fields.



  • @1. bystander – agreed most lenders at the moment won’t touch new build at more than 75% LTV

    Reply
    Please complete the required fields.



  • Sounds like a good deal doesn’t it?

    Question : Does their 25% equity reduce in value along with your 75%?

    Given that the government are going to be creating a social housing environment all around you in the units that don’t sell, your 75% could be reducing in value alot. And with extra leverage if their 25% stake doesn’t devalue.

    So there you are in your new 200k home in 3 years time with the value having fallen 30% to £140k. You still owing 150K + the 50k equity to the builder. 200k in debt, 60k of which is negative equity, surrounded by Chavs who moved in next door. Their contribution to your losses – not having a job.

    Be very careful buying new build. Whatever the offer.

    Reply
    Please complete the required fields.



  • So, they’re pushing a product where they suggest to their future lenders that if they’re worried about their jobs, then can insure themselves for 12 months. They SHOULD be advising woudl be borrowers that if they think they might lose their job within the next 12 months to take advantage of Gallifords gracious gift, then they OUGHT NOT to BUY at all!

    The developers will be giving a huge kick-back since the alternative is ruin. Why, if this is such a great deal, are we not seeing lots more new build??

    It’s a sub-prime mortgage dressed up to help developers stuffed full with houses they can’t sell that will ruin them as interest payments on loans erode all margins.

    Reply
    Please complete the required fields.



  • ontheotherhand says:

    Charity – New Homes Mortgage Helpline. Funny sounding charity to me. Who funds it? It doesn’t say anything about being a charity on its website.

    Reply
    Please complete the required fields.



  • A quick bit of digging and “The New Homes Mortgage Helpline is an Appointed Representative of Connells Limited”-

    Reply
    Please complete the required fields.



  • Surely if you have to make 25% of the value of a property repayable, interest free for 10 years, then this is the same as saying, the property is not worth what we are selling it to you for because if it was you woudl just pay for it in a normal manner!?

    Does anyone else agree or am I going mad?

    Reply
    Please complete the required fields.



  • mark wadsworth says:

    Golden rule – most things that describe themselves as a charity are in fact quangoes, or industry funded lobby or pressure groups. Or even worse, EU-funded.

    Reply
    Please complete the required fields.



  • Their losses on those 25% ‘discounts’ will be huge. Anyone buying a ‘junior’ obligation to pay £50k in ten year’s time would be unlikely to offer much more than £20k now, so to break even, the property needs to be over-priced by 15% in the first instance.

    So you effectively get a deposit free 90% mortgage, but then get a huge debt to pay later if you don’t throw in the towel first.

    – Better to rent!

    Reply
    Please complete the required fields.



  • An Bearin Bui says:

    JUST LOWER THE PRICES!!!! They really are desperate…

    Reply
    Please complete the required fields.



  • dohousescrashinthewoods says:

    So, less of a charity and more of an “attack force”.

    Great digging Jack C!

    Reply
    Please complete the required fields.



  • Balls to ‘Galliford Try Homes’.

    I’m absolutely sick of these companies trying to make out that they really want to help; the only persons these people want to help are themselves.

    Reply
    Please complete the required fields.



  • The message to those on the edge of the market should be :

    You’ve waited this long,so don’t get sucked into a declining market too early,with the notion of picking up a bargain that doesn’t exist.
    Deferred loans are very costly in the long run and the buyer has to rely on well performing future increases in the property’s equity to offset these costs. This is certainly not looking too helpful at the moment.

    Reply
    Please complete the required fields.



  • A desperate company with no scruples at all.This Adam Champion is about as incompetent as you can get in any professional person.Champion the blunderhorse!!

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>