FROM OTHER NEWS SITES
DAILY TELEGRAPH Jeremy Hunt and the secret BSkyB memo to David Cameron - Thu, 24 May 2012 20:55:45 GMT
Jeremy Hunt and the secret BSkyB memo to David Cameron - Thu, 24 May 2012 21:00:14 GMT
FINANCIAL TIMES Insults fly over troubled HP buyout - Thu, 24 May 2012 20:29:27 GMT
Insults fly over troubled HP buyout - Thu, 24 May 2012 18:29:53 GMT
BBC NEWS BBC News - Business - Thu, 24 May 2012 10:04:29 GMT
BBC News - Business - Thu, 24 May 2012 10:29:35 GMT
Poll
Current Issues
New Issue
Special supplement
Special supplement
Jobs
Jobs of the Week
Upcoming Events
NACFB: Maximise Your Membership Roadshow, Bristol
Shapps wants mates mortgages to solve FTB crisis
Banks should offer “mates mortgages” to help groups of friends buy a home together, Housing Minister Grant Shapps will propose today.
Shapps said: “If there are mates who are perfectly capable of paying monthly mortgage payments but are struggling to fund a deposit of their own, there should be straightforward options to unite with their friends and take the first step on to the housing ladder together.”
Britannia is one of a small number of lenders that allows up to four friends to buy together through its Share to Buy scheme. However, just 1,300 borrowers have taken out such a loan making the appetite for a “mates mortgages” plan questionable.
David Hollingworth, head of communications at London & County, said: “The proposal is absolutely full of risks. People get into enough strife when they rent a flat together over basic things like “who finished off the milk?” and “who is going to do the washing up?” It will be even worse if they have a mortgage to fight over.”
Melanie Bien, director of communications at Private Finance, added: “It is one thing to rent with friends, which is traumatic enough, let alone to get a mortgage with them.”
- Job numbers rise in financial services
- The economy will improve over the next year
- Consulco joins the Astl
- FSA bans two insurance brokers for misconduct
- Jump wants to tackle life cover issues
- Competitor intelligence is the key to success
- Cambridge launches 95 per cent deal
- OFT revokes debt collector licence
Mike Fitzgerald wrote:
I think that Grant Shapps new mates scheme will cause more problems than it solves.However at least we now have a Housing Minister that is trying to help First Time buyers.He has spoken out in favour of Interst only mortgages for the right type of client.At least he is trying to help the market.First Time buyers are rare at the moment and rates at higher loan to values are expensive.The goverment and lenders should get together and look at a new mortgage indemnity scheme that will allow lenders to lend at slightly lower rates.This will help buyers to get on the housing ladder-Mike Fitzgerald The EMBA Group Ltd
05 July 2011 15:25:25 GMT
Recommend? (0)Martin Tapper wrote:
Agreed, it is another positive attempt to help get the market moving, but it does not really grasp the nettle firmly enough. FTBs are only a part of the equation. More needs to be done to release the log jam in the market as a whole. Stamp duty moratorium for the whole market, with a gradual feed back to higher levels as the economy gets back on its feet.
05 July 2011 18:03:12 GMT
Recommend? (0)Grahame R Harwood wrote:
Another hair brained idea from a politician - God help us all!!
05 July 2011 19:27:14 GMT
Recommend? (1)Have Your Say