Help to get into debt

[GastonJ]

A scheme designed to make it easier to get a mortgage will start from next week, the Conservatives have said, as their party conference opens.
The second phase of Help to Buy, which allows people in England to get 95% mortgages, was due to start in January.

The Help to Buy initiative aims to make it easier to afford a deposit for a property.
The government will guarantee 15% of a mortgage, allowing lenders to provide up to 95% mortgages at reduced risk.
In an interview in the Sun on Sunday, the prime minister said he was eager to get young people on the housing ladder.
Mr Cameron said: "The need is now. I have always wanted this to come in and frankly the earlier the better.
"What concerns me is that you can't buy a house or a flat even if you are doing OK, you have got decent job prospects and good earnings.
"I am not prepared to be a prime minister of a country with caps on aspiration."

BBC News - Conservatives bring forward second phase of Help to Buy

So you don't have enough money to buy a house, the Conservatives will help to get you into debt you can't afford by the rest of us underwriting 15% of your mortgage so if you default we can pay for that as well. That makes no sense at all. He should have said

Mr Cameron said: "The need to be a tw@ is now - it is conference week after all. I have always wanted to get everyone else in debt that they can't afford and I look forward to my new job on many boards of banks who I have helped once I get kicked out of office. "What concerns me is that you can't buy a house or a flat even if you have no money, you have got decent prospects of losing your job and a good chance of losing your earnings. "I am not prepared to be a prime minister of a country which stops people getting way over their head in debt"

What they should be doing is building homes at a reasonable price that people can afford instead of inflating the price of houses and getting people into unneeded debt which is what this will do.

[Snowy79]

I tend to look it as giving people a chance to own their own home. There's plenty of people out there who are in as secure a job as you can get but won't get a Mortgage as they haven't the deposit. People moan there's not enough Social housing well won't this free up houses ? Everyone that's in rented accomodation or a council house that moves into their own home could free up at least one.

Or maybe we should ban credit catrds and loans. After all we don't want to get people in debt. Bloody Tories what are they like.

[ifred]

I just love all the great opportunities the gov keep give me to bail out all the hair-brain schemes and needy in the world!
The best part of it is I don't have to vote for it or even sign up they do it for me in my name,
Have they already forgot the 2007/8 market crash!!? caused by AAA investments based on mortgages lent to UN-investable mortgage borrowers started in the USA.
What did Ca-moron got to Eton for to learn table tennis and barbecuing
Now if only he could give me 15% interest on my hard earned savings I might agree.

[GastonJ]

Affordable housing is the key, not lending people even more money they can't afford, which leads to property price rises, more borrowing than people can afford and more debt. Affordable housing means that there is less of a deposit to save though still the same percentage. Underwriting 15% of a mortgage people can't really afford (which is why it's having to be underwritten because the banks and building societies don't believe the borrowers could pay it.... otherwise the banks wouldn't be asking for it to be underwritten now would they. Baks like to have it both ways, then if it drops through Mr Taxpaer pays the 15% and the bank get a house to sell) isn't really a sound footing for a life of mortgage paying really and only serves to increase prices.

[ifred]

Now if the Tories really believe in this scheme how about they underwrite the 15% against their personal properties and investments instead of Betty and Fred taxpayer?
They will do very nicely when the debt is payed off in 25-40 years time the will have supported the country in a time of need after all they have a few bob more at the end of the week after their champagne lunches etc. Poor Betty and Fred can't afford the odd bottle of whiskey to pour on the fire to make it burn nicely.
Sorry the bankers say "I can't see the profit in that so for that reason he's out and won't be investing today"