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

[dlockers]

That's a huge tl;dr to agree with the sentiment albeit with caveats (it has got better at some point ). It sounds like you sit in the financial advisor space. Most of these products are advertised on QVC in-between craft sets, fronted by Eamon Holmes. The fact ERC is optional and products like home reversion still exists, and they solicit their products versus wait for them to be advised is part of the problem. The virtue of what was said still stands. It is a predatory industry praying on the vulnerable to release capital for huge profit for the finance provider.

Buyer beware, except in this instance its Barry with little pension who has been convinced he can remodel his house and not pay a penny. Thanks Eamon.

 

[Theophany]

That's a huge tl;dr to agree with the sentiment albeit with caveats (it has got better at some point ). It sounds like you sit in the financial advisor space. Most of these products are advertised on QVC in-between craft sets, fronted by Eamon Holmes. The fact ERC is optional and products like home reversion still exists, and they solicit their products versus wait for them to be advised is part of the problem. The virtue of what was said still stands. It is a predatory industry praying on the vulnerable to release capital for huge profit for the finance provider.

Buyer beware, except in this instance its Barry with little pension who has been convinced he can remodel his house and not pay a penny. Thanks Eamon.

I mean it sounds like you have a broader issue with advertising (or maybe Eamonn Holmes? I can get behind that). How is any company going to sell their product or service without telling people it exists and what the potential benefits of it are? At least with a lifetime mortgage it has to clear multiple hurdles with professionals to ensure it's a suitable option for the person wanting to take one out.

 

[Puzzled]

I do wonder (with no kids) what will happen at end of life and how you balance not running out of money with having loads left over

I'll likely donate to charity. But obviously want to spend most

Don't worry the care home will take care of all that for you

I think a lot of people expecting an inheritance from their parents who have been able to benefit from insane house price increases are going to be in for a bit of shock when they realise how expensive care is in later years.

 

[413x]

Don't worry the care home will take care of all that for you

I think a lot of people expecting an inheritance from their parents who have been able to benefit from insane house price increases are going to be in for a bit of shock when they realise how expensive care is in later years.

To be honest, that's probably what will happen!

 

[Lethal`]

It would be great to hear what do you guys think!!

I think you're spamming the forum...

 

[Converge]

that's unfair to say to a new member, where did that rudeness comes from?

That you believe you’re being subtle with what you’re doing is what is particularly amusing.

 

[Deleted member 651465]

Probably shouldn't sign up with "branding" in your email address, to be fair

 

[Armageus]

Probably shouldn't sign up with "branding" in your email address, to be fair

 

[LuckyBenski]

Probably shouldn't sign up with "branding" in your email address, to be fair

Amazing!

 

[fez]

Don't worry the care home will take care of all that for you

I think a lot of people expecting an inheritance from their parents who have been able to benefit from insane house price increases are going to be in for a bit of shock when they realise how expensive care is in later years.

Care homes, inheritance tax and parents just spending it on nice holidays, new cars etc.

My parents have a comfortable retirement but by the time they are dead it will all be long gone. They go on 3 nice holidays a year, get a newish car every 3-4 years, go on a load of mini breaks every year and eventually they will need care which will take the rest.

If someone now had the sort of earnings my parents did during their career they would be looking at retiring at probably 70 (both parents retired before 60), having a much smaller house, very little savings and a generally very frugal retirement.

The gravy train is over for this generation i'm afraid. Our parents and the current super wealthy have plundered it. The idea of leaving the world in a better state than you found it has well and truly gone and successive generations have been writing cheques for their successors to pay. I'm glad I'm mid 30s with a house already because its a complete mess. The future looks utterly bleak for the future generations and thats ignoring things like the environment that is going to implode in the next 30 years or so.

 

[413x]

Care homes, inheritance tax and parents just spending it on nice holidays, new cars etc.

My parents have a comfortable retirement but by the time they are dead it will all be long gone. They go on 3 nice holidays a year, get a newish car every 3-4 years, go on a load of mini breaks every year and eventually they will need care which will take the rest.

If someone now had the sort of earnings my parents did during their career they would be looking at retiring at probably 70 (both parents retired before 60), having a much smaller house, very little savings and a generally very frugal retirement.

The gravy train is over for this generation i'm afraid. Our parents and the current super wealthy have plundered it. The idea of leaving the world in a better state than you found it has well and truly gone and successive generations have been writing cheques for their successors to pay. I'm glad I'm mid 30s with a house already because its a complete mess. The future looks utterly bleak for the future generations and thats ignoring things like the environment that is going to implode in the next 30 years or so.

These 95 percent mortgages etc have (as everyone expected) just raised the bar and life long debt level.
I'm also glad I'm not having kids and not born now. I doubt I'd have anything to leave once the state pension gets cut and end of life care has to be self funded. And if you don't leave anything for kids how will they ever obtain and I pay offa mortgage? Especially if you're an average earner all way through life.

But I still think it has to stop at some point. These massive houses the boomer generation own will be unaffordable for most. So who's going to want them? Prices have to come down eventually.

No boom lasts forever.

 

[fez]

These 95 percent mortgages etc have (as everyone expected) just raised the bar and life long debt level.

Its just propping up a ridiculous market. No one really benefits from this apart from those selling and getting out. The housing market needs to drop to make it affordable. Making it easier to borrow more for longer just keeps it stupidly expensive.

And if you don't leave anything for kids how will they ever obtain and I pay offa mortgage? Especially if you're an average earner all way through life.

They will work their entire lives to pay off a mortgage and have a **** retirement and all of it will go on their care at some point.

But I still think it has to stop at some point. These massive houses the boomer generation own will be unaffordable for most. So who's going to want them? Prices have to come down eventually.

No boom lasts forever.

The boom has finished. The baby boomers have bleed it dry. There is still huge amounts to be made but thats been made by the scant few. All that is happening now is that we are making the gap between the rich and everyone else much larger. Our parents generation could work in an average job and look forward to a stable and well off retirement for their years of work. Our current generation can look forward to working from 18-70 and being rewarded with a meagre retirement and dealing with the inevitable environmental crisis looming. Its OK though because all those millionaires and billionaires have earned their money and **** the rest of us.

Until governments step in and start to take more from the mega rich, this only get worse. Amazon et al will keep reducing their workforce and making more profit and if they are clever they will reduce their tax bill at the same time.

 

[Puzzled]

UK house prices rose by 7.1% compared with a year ago, the Nationwide has said, prompting one analyst to suggest the market is "on the boil".

The building society said the average property price had risen by £15,916 in the last year, to reach £238,831.

The Nationwide said increased savings during lockdown meant some first-time buyers would be better placed to afford a home.

But prices could continue to rise as homes available did not match demand.

Lucy Pendleton, from independent estate agents James Pendleton, said: "This market is on the boil.

"Silly season might be just around the corner. That's when a seller's market becomes entrenched against a backdrop of very high demand and you start to see open houses for properties that are nothing special and a return of gazumping."

............

The Nationwide said that the longer-term outlook for the housing market was more "uncertain".

"If unemployment rises sharply towards the end of the year as most analysts expect, there is scope for activity to slow, perhaps sharply," Mr Gardner said.

Nicky Stevenson, managing director at estate agent Fine & Country, said: "Numbers like this won't last forever but the market may not begin to unwind until the busy summer season is out of the way."


https://www.bbc.co.uk/news/business-56941162

I doubt many have managed to save £15k over the last year, that is a hell of a lot of cancelled meals out / drinks / socialising to make those sort of savings.

Do you think the government (current and past) even think about what is going to happen when generation rent hit retirement? How on earth are they going to afford it, sure you can say they will just have to retire later but your health or employer might not give you that option.

Personally I hope that by the time I get old assisted / voluntary suicide is legal, at least that way when my health deteriorates I will have the choice of a quick escape rather than years of being kept barely alive in a care home.

 

[413x]

I doubt many have managed to save £15k over the last year, that is a hell of a lot of cancelled meals out / drinks / socialising to make those sort of savings.

Do you think the government (current and past) even think about what is going to happen when generation rent hit retirement? How on earth are they going to afford it, sure you can say they will just have to retire later but your health or employer might not give you that option.

Personally I hope that by the time I get old assisted / voluntary suicide is legal, at least that way when my health deteriorates I will have the choice of a quick escape rather than years of being kept barely alive in a care home.

I'm sure they don't. They will be dead by that point.
I always wonder what will happen then. There will surely be no state pension.
Personal debt is just growing and growing.

Now with 5.5x mortgage to earning multiples and 95 percent mortgages we are surely playing with fire.

I'm fully expecting horrendous poverty for anyone who has few assets by time they can no longer work. I mean you are hardly going to be able to tax the current working generation to pay for it.