Boris promoting 5% mortgages

[Whammyyammy]

so boris is wanting 5% deposit mortgages for 1st time buyers, aibu to think this is more about saving the economy rather than helping people, nevertheless it will help.

www.google.com/amp/s/www.independent.co.uk/news/uk/politics/boris-johnson-speech-mortgage-deposit-housing-crisis-renting-b833340.html%3famp

Do you not think saving the economy will help people?

What’s the difference between helping people and saving the economy?

I never understand why people say things like "the government is only doing this to save the economy, not for the people". Well yes, of course! That's the government's job. Individuals can take advantage or not of the opportunities offered to them. (The issue is when the gov doesn't offer opportunities in a fair or even manner)

Also a strong economy is better for everyone's general well being.

Well people NEED the economy to be ok.

If a first time buyer gets a good mortgage deal & the economy is helped, I’d say that is a win win situation to be honest. Not sure what the point of your thread is?

With that scheme I can easily buy a 2 bed house in my area (albeit a "worse" area) than rent my £550/m 160ft studio flat. I have a decent deposit in savings and pay the rent directly out of my income. The discrepancy is so huge between renting and buying it's a big step up in some areas and situations. I think it's a good scheme but I would need the crunch the numbers for my extra living costs and bills for a bigger house before I committed. The incentive is there.

Sorry 160sqft - my flat is not just a 160ft line

Id need a 100% mortgage with how hard this economical disaster has hit my family

I haven’t read the details of this news. Is the idea of this mortgage to support first time buyers only or all single-home owners. Say we have 5% for our next house (outgrown the current one for example)cans this is the only property we will own as we will sell the previous one for deposit. Will it be considered in this scheme or is it just the first time buyers?

What a stupid comment op. Of course he wants to save the economy, that’s going to help all of us, what do you expect him to do? And if first time buyers get a good deal along the way then great

As I understand it the earnings multiple is also a barrier to buying? But pleased with the 5%.

Why have you got two threads with different opinions? Reeks of trying to simply stir shit uo

There were 5% mortgages for years for FTBs. I take it they will do away with income requirements? Wouldn't that though be irresponsible lending?

I imagine there would still be the same hurdles as now, in regard to current situation and income. DH and I have recently started saving for a mortgage, our joint income is good and we're renting at the moment. Saving a 10% or 15% deposit is going to take a long time, so being able to get a mortgage with a 5% deposit will get us on the ladder much faster.

@Bookriddle

Id need a 100% mortgage with how hard this economical disaster has hit my family

Same. With a 3 year payment holiday.

Well you could get a mortgage with 5 per cent deposit until March 20th!

I can imagine this being a good thing if you live up north but it’s utter pointless for everyone in the southeast. With a single average salary of say 30k, you’d be hard pushed to find anything but a tiny studio at 120-130k. So unless the banks are willing to lend at least 6-8 times the average salary nothing will improve for the majority of first time buyers.

@SchrodingersImmigrant

There were 5% mortgages for years for FTBs. I take it they will do away with income requirements? Wouldn't that though be irresponsible lending?

Exactly - encouraging people to spend on houses they actually cannot afford and pressuring banks into irresponsible lending (which could end up damaging the economy, not saving it at all - anybody remember the sub-prime mortgage crisis in the States which ruined hundreds of thousands of lives?) instead of addressing the housing shortage or even (gasp) looking at land reform policies, all of which could contribute to lower house prices, meaning people could AFFORD their housing and the banks would not have to lower lending criteria.

Is there a way to calculate rent in an area and then base the mortgage on that? So if someone is paying more in rent than they would in mortgage, even if the house price is more than five times their salary, they can still afford that place perhaps. Unless he brings in something like this, nothing is going to change much for anyone except very high earners or two-income families/partners in the south east

Land reform will never happen. Especially with a Tory government many of whom are the descendants of major land owners.

What's the difference?

Are people really splitting out the economy and people?

Even after all the job losses.

We have land reform in Scotland. Several estates have been bought up by locals. Works up until a bit of infrastructure goes wrong - say a bridge needs fixed - before the land owner would pay , now it is the poor bugger whose land it is on. He quite often doesn't.

@SpaceRaiders

Land reform will never happen. Especially with a Tory government many of whom are the descendants of major land owners.

I know...wishful thinking. It just infuriates me that this is so obviously manufactured to sound good to the very people who will lose the most if the economy crashes as a result of irresponsible lending, and BJ knows it.

Haha Haha. Because saving the economy would such a terrible aim for a government to have..? I despair

@cdtaylornats

We have land reform in Scotland. Several estates have been bought up by locals. Works up until a bit of infrastructure goes wrong - say a bridge needs fixed - before the land owner would pay , now it is the poor bugger whose land it is on. He quite often doesn't.

Bridge is an extreme example, isn’t it? Also, rather than saying that land reforms actually can be improved, you are using this to bash the whole idea itself. Before people start saying there is no magic money tree, I would like to see where the existing tax money is going and who is benefiting from it. Until I have that in front of me, I will not trust anyone saying there is no magic money tree because this tree comes out the moment we have to award contracts to undeserving companies.