Saturday, February 27, 2021

More Money for Houses

Sunak's budget expected to offer first-time buyers mortgage guarantee

The government have decided to provide incentives to mortgage lenders to offer 95% mortgages for first-time buyers. There don't seem to be many details. I expect the incentive will be UK taxpayers underwriting a share of the loan and hence share of risk if the borrower defaults. at a time of significantly rising national debt, I find this policy questionable.

Posted by Quiet Guy @ 11:24 PM (1632 views)
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4 thoughts on “More Money for Houses

  • Guarantee to the lenders. The extra debt the FTB will be able to take on will be theirs to service for the rest of their lives. This will increase prices and therefore make the mortgage trap even deadlier. Who should be celebrating? Glad to see the Government have found a way to inflate the bubble a little further, without having to extend the Stamp Duty holiday. Creative shystering.

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  • LandOfConfusion says:

    BBC was talking about this a few days ago and apologies about being like a broken record with regards to that ‘news’ organisation but, once again they managed to find & interview an affected but otherwise clueless mug. And of course there are only “concerns” that “it might” push up house prices. Meanwhile that bastion of left-wing values, the FT, interviewed an actual expert who pointed out this wasn’t likely aimed at FTB’ers but rather appeared to be aimed at propping up the housing market.

    Interesting though that there’s no immediate commitment on more money, only guarantees that they’ll bail out banks whenshould the hosing market go backwards. Of course they presumably weren’t going to do that anyway so this is totally new and unplanned policy.

    And in other news CPI+household prices reached 0.9% back in January, up from 0.6% (Nov) and 0.8% (Dec).

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  • I stand corrected: Stamp Duty has been extended.

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  • stamp Duty Holiday that is 🙂

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