Budget 2021: Mortgage guarantee to help buyers with 5% deposit

Then why worry about it, focus on the things you can change or you'll just be miserable for the rest of your life.
To accept the things I cannot change; Courage to change the things I can; And wisdom to know the difference. Forever and ever in the next.

Or something like that.
 
I don't know why they don't just do longer loan periods like they do in Switzerland. 50yr mortgages are the norm due to house prices being higher. You still have a 20% deposit here but your loan period is much longer meaning you're better off every month.

Are their interest rates lower than ours? If you ever want to feel depressed, look at your mortgage and figure out how much you are giving to the bank over the course of your mortgage. "Oooh, 1.8% interest rate, thats low. Wait a second, I am still giving the bank £150k over the life of my £300k mortgage...".

Housing needs to stop being an investment that grows far faster than inflation and it shouldn't be something that people profit off. Allowing people to own multiple homes just pushes the prices up and means that the poor schmucks at the bottom of the ladder are just paying off the mortgages of those at the top. In what world is it fair for person A to buy a property with a low deposit, rent it to person B for 20 years, have person B pay off their mortgage for them and they now have a property that they have paid almost nothing for and is probably worth 50-100% more than they "paid" for it.

Person A:
Buys house at £300k with 10% deposit so pays £30k (20 year mortgage)
Person B rents it for 20 years and pays off mortgage and obviously is giving landlord more in rent than mortgage payment each month.
House goes from £300k - £600k in that time.

Person A now has a £600k asset they paid £30k for, they have made money along the way (difference between mortgage payment and rent) and they are now getting that rent payment without a mortgage.

Its insane and there should be something in place to stop people building up large property portfolios that someone else has paid for.
 
To accept the things I cannot change; Courage to change the things I can; And wisdom to know the difference. Forever and ever in the next.

Or something like that.

Yes.
I'm disgusted about the amount of litter in my park so I go litter picking.
I can't change the housing market so go with the game. You have to find a balance
 
I'm vegan for the reasons mentioned,, the help the planet one is secondary to me not wantimg to support the animal holocaust around us.
House wise I have never been able to afford average house prices so I buy for half that and roll my sleeves up, hence I'm mortgage free (this bit took 9 yrs) in a stunning (even by 1m plus standards) house, its not difficult
Boom
 
Could happen too. I guess that's why 95 percent mortgages are a great 'in my lifetime' fix.

It invests a whole load more people in the 'I don't want house prices to crash' club.
Only when it gets to breaking point will it all fall away.


Got to say for the demographic the tories represent. It's a great play to keep things going for that generation. And those already in.

If this country is good at one thing, it's kicking the can down the road.
 
Are their interest rates lower than ours? If you ever want to feel depressed, look at your mortgage and figure out how much you are giving to the bank over the course of your mortgage. "Oooh, 1.8% interest rate, thats low. Wait a second, I am still giving the bank £150k over the life of my £300k mortgage...".
UBS quoting 1.2% in 2021

Then why worry about it, focus on the things you can change or you'll just be miserable for the rest of your life.
Exactly. Pick your fight. If you feel like you want to spend the only years you will have in existence fighting a battle to change something, because you believe so strongly in it. Then 100% do it. Make a difference and fight your fight. If you don't, and want to continue to dwell on the **** state of humanity, wasting each second of your life, then I feel really sorry for you.
 
To be honest I think more of us should be miserable, given what is happening in the world.

Being blissfully ignorant / burying heads in the sand is exactly what I'm talking about. "I'm alright, Jack."

You don't anymore have to look to Africa to see poverty (in fact Africa now has a thriving middle class content who also couldn't give a damn :p). You can see it in this country and it's on the increase.

The stats, the trends - they paint a fairly bleak picture of the future. It may well not come crumbling down in our lifetimes, but I wouldn't bet on it.
 
To be honest I think more of us should be miserable, given what is happening in the world.

Being blissfully ignorant / burying heads in the sand is exactly what I'm talking about. "I'm alright, Jack."

You don't anymore have to look to Africa to see poverty (in fact Africa now has a thriving middle class content who also couldn't give a damn :p). You can see it in this country and it's on the increase.

The stats, the trends - they paint a fairly bleak picture of the future. It may well not come crumbling down in our lifetimes, but I wouldn't bet on it.
I take absolute exception to the idea that anyone should be miserable. That's a really dumb thing to say. And I'm a miserable ****.

Stay on topic please, I followed this thread because the subject matters to me, I don't care for the political/philosophical nonsense it's descended into.
 
I take absolute exception to the idea that anyone should be miserable. That's a really dumb thing to say. And I'm a miserable ****.

Stay on topic please, I followed this thread because the subject matters to me, I don't care for the political/philosophical nonsense it's descended into.
Report the posts that you feel are off-topic and let the mods decide, then. Otherwise people are free to discuss things in whatever manner they wish, including discussion of the wider context, and even "philosophical nonsense," should they wish.

Alternatively - there's an ignore function.
 
Stay on topic please, I followed this thread because the subject matters to me, I don't care for the political/philosophical nonsense it's descended into.
Second thing.. can you please explain to me (and others) how housing is not a political issue?

Because it very much seems that housing policy is set by the government, and Labour and the Tories (etc) have very different ideas of what that housing policy should be.

Things like "Right to Buy" have massively affected the housing market. Policies such as not allowing local councils to build up their housing stock (they must sell every new house they build).

How you can claim that political discussion is off-topic/nonsense I genuinely don't know. You're welcome to say that my opinion is nonsense if you like, but housing very much is a political issue (as are most things, tbh).
 
Coupling mortgage interest rates to the base rate is another scandal, it's so insane no other country in Europe does this, and neither does the US.

Not particularly - it's a fairly simple concept and from the POV of a bank it's just the case of using swaps as needed...


Don't you think you're forgetting something? Something that happened in the late 2000s? People refer to it as the Global Financial Crisis? Don't you forget what caused it? And don't you see we're exactly repeating those same steps?

LOL

Eh? In your previous reply you quoted me literally talking about the financial crisis and one reply on you're pretending that I've never heard of it? Are you trying to have a discussion here or are you feigning amnesia or something? See the post linked below for a recap before replying again pls if you're going to throw in comments like that

https://www.overclockers.co.uk/forums/posts/34603898/

The good old "uproot your life so you can afford a roof over your head" argument. Funny, if everyone does that, those so-called affordable places won't remain affordable. And when there's an influx of London workers into remote areas, the locals in those areas are going to get priced out. Or maybe they now need to uproot their lives and move somewhere else.

You can't solve a massive, multi-million housing shortage by relocating people.

OK, so where are you going to build in Central London? You can build some towerblocks perhaps, are you going to turn it into Hong Kong or something?
 
Not particularly - it's a fairly simple concept and from the POV of a bank it's just the case of using swaps as needed...

Of course if your goal is to maximise bank profits, it's so simple. You can decouple the two, like it is in Eurozone, the US, Canada, Australia, etc. If their banks can handle it, so can ours.

Eh? In your previous reply you quoted me literally talking about the financial crisis and one reply on you're pretending that I've never heard of it? Are you trying to have a discussion here or are you feigning amnesia or something? See the post linked below for a recap before replying again pls if you're going to throw in comments like that

https://www.overclockers.co.uk/forums/posts/34603898/

Seems like you forgot your own comment then, in this post, when you mocked people who were claiming in early 00s that housing was going to crash when that's exactly what happened and they were proven right.

OK, so where are you going to build in Central London? You can build some towerblocks perhaps, are you going to turn it into Hong Kong or something?

Exactly. England's population density is similar to Japan's. UK's is only slightly less (already 2x that of France). We should build housing similar to the likes of Japan, South Korea, Singapore, Hong Kong, etc...

Build taller, build high speed rail commutes and cities from scratch. If they can do it, so can we.
 
OK, so where are you going to build in Central London? You can build some towerblocks perhaps, are you going to turn it into Hong Kong or something?
There's plenty of brownfield sites in London, the problem is they just build 'luxury apartments' for Russian oligarchs or Arab sheiks because there's no legal impetus or regulation to ensure they are for the average London worker. You only have to look at the big development sites for 5mins to see what wasted opportunities they are. Try Battersea for the obvious one, that's 20,000 homes up the spout. Totally pointless. Or Royal Wharf, that's nearly 4,000 homes. That's just off the top of my head.

This is why I disagree vehemently with anyone simply suggesting 'build more' to solve the crisis. There's no point building more when (a) they are all 'luxury' apartments and priced as such or (b) if they are anywhere remotely affordable then they are bought up by aforementioned oligarchs or sheiks. Or worse, landlords.
 
There's plenty of brownfield sites in London, the problem is they just build 'luxury apartments' for Russian oligarchs or Arab sheiks because there's no legal impetus or regulation to ensure they are for the average London worker. You only have to look at the big development sites for 5mins to see what wasted opportunities they are. Try Battersea for the obvious one, that's 20,000 homes up the spout. Totally pointless. Or Royal Wharf, that's nearly 4,000 homes. That's just off the top of my head.

This is why I disagree vehemently with anyone simply suggesting 'build more' to solve the crisis. There's no point building more when (a) they are all 'luxury' apartments and priced as such or (b) if they are anywhere remotely affordable then they are bought up by aforementioned oligarchs or sheiks. Or worse, landlords.

Building has to be combined with regulations to ensure that houses are:

1) Sold at no profits
2) Affordable and offered to FTBs and councils only
3) Only owner occupied
4) Can never be sold at above inflation rate growth
5) Only sold to British citizens and ILR holders, no foreign ownership

Building a million houses with these restrictions every year for the next 15 years will sort out our housing crisis.
 
Building has to be combined with regulations to ensure that houses are:

1) Sold at no profits
2) Affordable and offered to FTBs and councils only
3) Only owner occupied
4) Can never be sold at above inflation rate growth
5) Only sold to British citizens and ILR holders, no foreign ownership

Building a million houses with these restrictions every year for the next 15 years will sort out our housing crisis.
With rules like that I think you'd be better off renting?
 
Of course if your goal is to maximise bank profits, it's so simple. You can decouple the two, like it is in Eurozone, the US, Canada, Australia, etc. If their banks can handle it, so can ours.

Any evidence that a tracker maximizes profits to banks over a fixed? you're free to choose either - I don't think you'll find an obvious free lunch here.

Seems like you forgot your own comment then, in this post, when you mocked people who were claiming in early 00s that housing was going to crash when that's exactly what happened and they were proven right.

Nope, I've not forgotten that at all - I'm talking about 20 years later - pay attention to what I've said. If you find yourself throwing in questions like - has this poster forgotten that the financial crisis happened when he's mentioned it in a recent post you'd only just quoted him in then perhaps your take/interpretation is a bit off, if not just made completely in bad faith.

Exactly. England's population density is similar to Japan's. UK's is only slightly less (already 2x that of France). We should build housing similar to the likes of Japan, South Korea, Singapore, Hong Kong, etc...

Build taller, build high speed rail commutes and cities from scratch. If they can do it, so can we.

Sure and is a property in central Tokyo or a desirable area of HK affordable as a result? Again, think about it, you can build more to try and increase supply, you're not going to change the fact that people will want to compete for desirable locations and the losers will have to make some other choice like only being able to rent in a desirable area or having to move elsewhere.
 
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With rules like that I think you'd be better off renting?

Maybe (if you need flexibility), but if you want a stable long-term home to live in, those rules are not a problem.

In London you're almost always better off renting anyway, with rental yields now at ~3% :D or even 2.5% if you negotiate a bit. Makes buying completely pointless.
 
Maybe (if you need flexibility), but if you want a stable long-term home to live in, those rules are not a problem.

In London you're almost always better off renting anyway, with rental yields now at ~3% :D or even 2.5% if you negotiate a bit. Makes buying completely pointless.
Have you been to London?

Only good for meetings and lunch :p
 
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