Tuesday, July 5, 2011

More clutching at straws

Banks should offer 'mates mortgages' so friends can buy together, says housing minister

Mortgage experts [euphamistically] question practicality of MP's proposal.

Posted by dill @ 08:10 AM (1733 views)
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15 thoughts on “More clutching at straws

  • I seem to remember lots of people doing this in late eighties and early nineties when I lived in London, usually ended in tears.(Keys through the doors). My mate in East Dulwich/Peckham has just sold to a pair of friends desperate to get on the ladder, also needed a big help from bank of mum and dad.

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  • The best rated comment is

    “They really don’t get it do they, houses are OVERPRICED!! Wise FTB’s will stay off the market altogether until either wages increase or house prices drop.”

    And another cracker

    “Oi, Shapps, build some housing!”

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  • mark wadsworth says:

    Bizarre. It’s good fun renting a house together with friends, but these things tend to dissolve in acrimony over time and just fade away, leaving the last tenant still in occupation to deal with all the landlord type hassle. Times that by about ten because real money is at stake and that’s how much fun buying a quarter of a house is, the point of which escapes me.

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  • just read a similar article on sky they seem to think the average deposit is 20,000 quid or 20% of property value, i am curious what country are these people assessing their figures on, certainly not the uk

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  • I think a joint mortgage would make sense if both you and a friend had a talent for carpentry & DIY. You could buy an old wreck, do it up over a couple of years while living in it, then sell it for a profit. By setting (fairly) strict time limits on the project, you’d avoid some of the usual house-sharing stress. At the end of the project you’d sell the house (or one of you buys out the other), and you both have a net gain.

    But for most people, no no no. House-sharing is an evil that is curiously tolerated; but nobody should lock themselves into such a situation.

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  • Not Mr Shapps finest hour..

    – blokes get girlfriends, and the gals get boyfriends – that’s the way it is.

    Trying to set up home when your ‘mate’ is living in a house you have a half share of and all your savings tied up in is an obvious nightmare.

    Just build more Grant – and get on with it!

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  • [email protected] – have you been brainwashed too now? Why not go the whole hog, buy several and get a nice little BTL business going?!?!?

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  • Khards @2

    Either they don’t get it or they just want to recruit patsies to share the losses .

    The only think that could stop house prices dropping is if they are all brought by foreigners .

    Eventually I think we need some protection to reserve houses for British Citizens .

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  • My mates were buying together (I nearly did) in late eighties.

    There was a problem for all that did and that included two brothers who grew up sharing a bedroom.

    What is it with ministers suddenly becoming house price bubble entrepreneurs.

    If there ain’t enough or they’re too much, build more.

    How’s this for an idea – ban BTLers that should free up a few homes. Mind you that would stop a few of us shorting the housing market.
    How about – for every BTL mortgage taken out a new home must be built in the same area in addition to normal build level.

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  • timmy t,

    A lot of people have a part-time hobby, which in some cases also earns them extra money. Maybe they’re in a band, maybe they do the odd bit of photography, maybe they give piano lessons to the neighbours’ kid. If you and a mate have good DIY skills, then buying a run-down house together gives you a project to work on and you could earn maybe £20k each, tax free. It’s certainly not for the inexperienced though.

    So in other words, buying a house with a mate is only a good idea in very specific limited circumstances.

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  • general congreve says:

    Anyone thinking about buying together needs to read ‘He died with a Falafel in his hand’. The book is about renting with strangers, but until you’ve lived with your mates you don’t really know the true them, so it’s very applicable.

    Anyway, I want to know what Schnapps’ plan is for once everyone is crammed into houses with joint mortgages. What happens then? Do they get a bigger joint mortgage and jointly buy a bigger house? Or, while they are all paying a mortgage are they supposed to all save up enough money for a deposit on their own vastly overpriced place?

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  • general congreve says:

    And what happens when one mate loses his job? Does he get housing benefit to cover the shortfall? If so, not a bad way to get yourself a nice pad, in a nice area, paid for by the government.

    All club together, buy a house, buy a playstation, get laid off, get SMI or housing benefit to cover the mortgage, play playstation and drink beer with your mates all day, like you did when you were a student 🙂

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  • Rental John says:

    Best mates today… ‘where’d he go’ tomorrow?

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  • general congreve says:

    Just read the comments, it’s an HPC feeding frenzy! Daily Mail readers (bar a couple of idiots) most definitely get it. This is pretty typical:

    Yet another idiotic comment from this totally clueless Minister. The ONLY thing propping the housing market up at the moment are the billions being spent by the government on protecting these ‘assets’ aided by the equally clueless Mervyn King. Take these props away and the housing market will once again become affordable to FTB’s. Oh, but that would reduce the ‘assets’ on the banker’s balance sheets, so not likely to happen is it? What this government and the BoE is doing is nothing short of criminal.

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  • A generation of first time buyers have already been priced out. There is also a growing generation of first time buyers (like me) who have decided they will never pay the ridiculous asking prices even if they can afford it. So there are even more people who will not get involved in feeding the cartel. Once the cash rich people have left then the market will naturally collapse. It’s a question of when and not if the prices will collapse.

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