Nationwide calls time on the Bank of Mum & Dad.

[stockhausen]

Nationwide has decided that in order to get a mortgage with a 10% deposit, a prospective house buyer must now prove that they were given a maximum of 25% of that deposit by a parent or grandparent - they must show that the remaining 75% comes from their personal savings.

Whilst I applaud the idea of encouraging young people to save, I do wonder what reason Nationwide believes that parents have for saving money?

I have also heard suggestions that the Government wants banks to set negative interest rates so that you will have to "pay" a bank to keep your money. It seems that the Government's rationale is that everyone should dig into their savings in order to get the economy moving again.

I guess that the problem of paying for care home can be dealt with tomorrow - or at least, after the next election.

Didn't someone say something about imaginary money trees a while back?

edited:
On the basis of further study it does appear that Nationwide are (quite reasonably) doing this in order to ensure that people who may, with the help of their parents, have "scraped" together a deposit, are actually capable of saving and thus keeping up their repayments. In the current economic climate with the risk of many job losses I guess that that makes complete sense.


I am less convinced by the Government's apparent enthusiasm for a negative interest rate in order to encourage people to

Spend, Spend, Spend today because you needn't care about tomorrow!​

 

[stockhausen]

The controversial new policy states that borrowers looking to get a mortgage that will cover 90 per cent of the cost of their home must prove that no more than a quarter of their deposit was gifted to them. The rule does not apply to customers looking for deals at 85 per cent loan-to-value or lower. (The Independent)

It does appear (quite reasonably) that Nationwide are doing this in order to ensure that people who may have "scraped" together a deposit, with the help of their parents, are actually capable of saving and thus keeping up their repayments. In the current economic climate with the risk of many job loses I guess that that makes complete sense.


I am less convinced by the Government's apparent enthusiasm for negative interest rate to encourage people to Spend, Spend, Spend today because you needn't care about tomorrow!

 

[stockhausen]

A ban on BTL and reintroduction of the Fair Rents Act would do wonders for the housing market. . . .

What was / is the "Fair Rents Act"?

I agree entirely about Buy To Let but in reality, it is just another form of investment in a free market - where does one stop?
What about private medicine, private dental treatment?

 

[stockhausen]

How are they comparable? Most people don't have an option of who they rent from as the majority of housing stock available to them is privately owned. . . .

Yes, I agree with that.

. . .
Flip it around - if there was only private medicine and private dental treatment - what do you think would happen to prices? . . .

We are well on the way to having only private medicine already and that will inevitably become more marked when American suppliers are given free rein. To all practical purposes we are in the position where we already have only private dental treatment.

In answer to your question, medical and dental treatment will become more expensive and a decent service will be denied to many - just like housing.

. . . We need more council houses to increase supply and push rents down.

You definitely will get no argument from me on that front - the evil people who sold off the council housing stock and didn't replace it should burn in hell.

 

[stockhausen]

. . .
I can show you homes for £20k.
. . .
Some people need to get a grip. Especially those complaining about London House prices.
. . .

Based on what I have heard from people who live in London, you need to get a grip on reality pal

BTL is unquestionably the dirty face of greed.

 

[stockhausen]

If they don't earn enough money to buy in London then move elsewhere.
. . .

As I said, you want to get a grip on reality pal. If you buy and rent out property you may be able to choose where you live, not all of us have that luxury - we live where there are jobs in the businesses for which we have the skills.

. . . We live in a capitalist country and being a landlord is nothing to do with greed. . . .

Indeed we do and BTL has everything to do with greed.

. . . Affordable homes are out there. . . .

Yeah, right - somewhere.

. . . Problem is people want to live where they cannot afford. . . .

No, people have to live where the jobs are.


ps - Ferraris are for Landlords nowadays rather than for City Spivs.

 

[stockhausen]

. . .
It's always renters who have an issue with landlords. They blame them for their own circumstances. It's amazing how they will never foot any of the blame on their own door.
. . .

Renters always have an issue with Landlords - quite so, so long as they are getting the rent, Landlords simply don't care.

Some (not all) Landlords are absolute charlatans, they don't maintain the property and if the tenant complains, the Landlord gives them notice to quit and finds some other sucker who they can milk for a while.

You seem to have a preoccupation with flash cars, that perhaps indicates where your interests and motivations lie?

 

[stockhausen]

There are good and bad people in every profession.
For every good doctor there is a bad one.
For every good lawyer there is a bad one.
And for every good landlord there is a bad one.

You cannot say that it's any different in any other profession. . . .

Both Doctors and Lawyers go through years of intensive relevant training, Landlords do not.
Both Doctors and Lawyers are controlled (to a greater or lesser degree) by Professional bodies tasked with ensuring their Professionalism, Landlords are not.

I have never before heard of being a Landlord described as being a member of a "Profession"

 

[stockhausen]

I thought proffesion was different to professional. With proffesion basically meaning what's you job and a professional basically being a job that requires a degree.

I would suggest that your understanding is misguided. I am perfectly happy with Wikipedia's:

"A profession is an occupation founded upon specialized educational training."​

However, I am equally happy to go along with the Cambridge Dictionary's:

"Any type of work that needs special training or a particular skill . . ."​

I don't consider being a Buy To Let Landlord to be a Profession; it is not like being a Gas Fitter, a Plumber or a Bricklayer which might be nearer to qualifying as a Profession.

 

[stockhausen]

GPs are useless. . . .

Yeah, right, OK.

However, can GPs get you a mortgage at good rates, despite the involvement of Mummy and Daddy, that is the question?


You can console yourself that as online consultations become more typical you will be able to speak to someone in the Far East / Russia / China who will diagnose your condition and send you to their local "Agent" who will supply you with some useless placebo
- unless -
You can afford to consult a US based online diagnostician who will also send you to their local "Agent" who will supply you with some useless placebo - at a huge cost.

I can just imagine the sequence:

Automated online Consultant: Waddya you wan?
You: I'm sick, really sick
Automated online Consultant: Yeah? Waddya you wan? I got Morphine, you wan enuff to kill yosel or just to chill?
You: I'm sick, really really sick, I just want to feel better
Automated online Consultant: You wastin my time! Why you wastin my time? Get a life!

Click.​

 

[stockhausen]

Pmsl @ landlords replacing carpets and ovens at each new tenancy.

Been renting various properties for about 20 years now, extremely rare to get either of those unless it's newly renovated for btl.

Normally it's the exiting tenants responsibility to get carpets professionally cleaned (and provide proof) and clean things like the oven.

Absolutely.

In my experience, most Landlords go to town at the end of a Tenancy, trying to find any possible excuse to withhold all or most of the deposit.