Bournemouth council to offer mortgage deals to first-time buyers

Bournemouth Echo: SUPPORT: Leader Cllr John Beesley SUPPORT: Leader Cllr John Beesley

PEOPLE looking to buy their first home in Bournemouth are being offered an alternative way to get a mortgage.

Bournemouth Borough Council is set to offer deals to first-time buyers – applicants will need to have a five per cent deposit, have lived in the borough for 12 months, be planning to buy in Bournemouth and demonstrate that they can repay the loan.

Mortgages will also be available to key workers and loan periods will range from 10 to 30 years.

The announcement comes in the wake of debate over interest rate hikes, the future of the housing market and fears that it might get out of control.

Speaking to the annual Mansion House dinner in London on Thursday night, Bank of England Governor Mark Carney said that more spare capacity needed to be used in the economy before interest rates were raised.

At the same event, Chancellor George Osborne announced reforms to planning laws to increase housing supply and said that, although the housing market did not pose an imminent threat to economic stability, it could do so in the future if it was not controlled.

But mortgage lenders have said that a mortgage cap was unlikely to be the first thing to cool the market.

Bournemouth’s mortgages are being offered under the Housing Act, as part of the Community Finance Initiative. Through the so-called ‘Bank of Bournemouth’, the council has already started lending money to businesses.

Leader Cllr John Beesley said: “The development of Bournemouth Community Finance has been built on market research that indicated that younger people in Bournemouth are finding it difficult to gain their first steps on the housing ladder or get finance to grow their businesses.

“The Community Finance Initiative shows our commitment to helping residents and key workers live in Bournemouth and support the housing market in the town.”

Liz Wilkinson, executive director for finance, added: “Many people have a proven track record of meeting regular rental payments, but are currently struggling to get mortgages.

“This is largely because high rents are making it difficult for first-time buyers to save a sufficient deposit.

“Our research showed that 73 per cent of potential first-time buyers in Bournemouth are struggling to save the necessary deposits required by lenders. This is all about making mortgages more accessible to local people.”

For information contact communityfinance@bournemouth.gov.uk or 01202 451118.

Comments (47)

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7:06am Sat 14 Jun 14

BIGTONE says...

FAIL!
FAIL! BIGTONE
  • Score: 0

7:33am Sat 14 Jun 14

High Treason says...

Do we have a council to run the area for the benefit of the residents or do we have a council that is attempting to compete with JP Morgan. They outsource, create partner companies, BH Live etc and now loans to business and mortgages. If like their other disastrous business decisions, the surf reef for one, guess who pays for their incompetence. If a business is unable to get a loan from a bank or people are unable to obtain a mortgage from the usual providers they are a bad risk.
Do we have a council to run the area for the benefit of the residents or do we have a council that is attempting to compete with JP Morgan. They outsource, create partner companies, BH Live etc and now loans to business and mortgages. If like their other disastrous business decisions, the surf reef for one, guess who pays for their incompetence. If a business is unable to get a loan from a bank or people are unable to obtain a mortgage from the usual providers they are a bad risk. High Treason
  • Score: 18

7:44am Sat 14 Jun 14

samsmith says...

It's not exactly a new idea. My Mum and Dad who lived in Southampton in the 70s were able to get their mortgage through the council as my Mum was a teacher. The council earnt money through the interest. The only difference is that the house they bought then was about £7000 and not the £200,000 it is probably worth now.
It's not exactly a new idea. My Mum and Dad who lived in Southampton in the 70s were able to get their mortgage through the council as my Mum was a teacher. The council earnt money through the interest. The only difference is that the house they bought then was about £7000 and not the £200,000 it is probably worth now. samsmith
  • Score: 12

8:13am Sat 14 Jun 14

Moro99 says...

If you have a 5% deposit the bank will lend. What is the interest rate?
If you have a 5% deposit the bank will lend. What is the interest rate? Moro99
  • Score: 10

8:13am Sat 14 Jun 14

Carolyn43 says...

It definitely isn't a new idea. We bought our first house in 1965 for £3,375 in East London and the only way first time buyers could get a mortgage was through their local authority, and then it was 3 times the husband's income only. A wife either had to stop work immediately on marriage or stopped work when they got pregnant and stayed home to look after children. Wives were only expected go to work if they had no children. As it was expected that all couples would have children, the wife's income was ignored.

Building Societies wouldn't lend to a first time buyer even if you'd been saving with them, and banks only offered overdrafts to a few and loans over a maximum of 5 years - all means tested.
It definitely isn't a new idea. We bought our first house in 1965 for £3,375 in East London and the only way first time buyers could get a mortgage was through their local authority, and then it was 3 times the husband's income only. A wife either had to stop work immediately on marriage or stopped work when they got pregnant and stayed home to look after children. Wives were only expected go to work if they had no children. As it was expected that all couples would have children, the wife's income was ignored. Building Societies wouldn't lend to a first time buyer even if you'd been saving with them, and banks only offered overdrafts to a few and loans over a maximum of 5 years - all means tested. Carolyn43
  • Score: 11

8:29am Sat 14 Jun 14

Bpl333 says...

It's not a brand new idea, but a new idea that can help people get on the property ladder....
The councils have to find ways of increasing revenue whilst helping the local community..
It's not a brand new idea, but a new idea that can help people get on the property ladder.... The councils have to find ways of increasing revenue whilst helping the local community.. Bpl333
  • Score: 8

8:32am Sat 14 Jun 14

we-shall-see says...

Why have they chosen to lend to anyone who has lived in the area for only 12 months? Why not restrict the lending to those who were born here or have lived here for many years?

I can see the greedy amongst us taking advantage of the cheap interest rates to buy a house, then sell it on for profit and so on. Either that or buy to rent it out and make a fortune on rent - probably from taking in benefit claimants and getting the council to pay the rent. Double whammy!

Not so sure this a good idea, since if most people cannot get a mortgage through a bank, there is obviously a risk .....
Why have they chosen to lend to anyone who has lived in the area for only 12 months? Why not restrict the lending to those who were born here or have lived here for many years? I can see the greedy amongst us taking advantage of the cheap interest rates to buy a house, then sell it on for profit and so on. Either that or buy to rent it out and make a fortune on rent - probably from taking in benefit claimants and getting the council to pay the rent. Double whammy! Not so sure this a good idea, since if most people cannot get a mortgage through a bank, there is obviously a risk ..... we-shall-see
  • Score: 4

8:57am Sat 14 Jun 14

Bpl333 says...

We have a growing uni area. To keep the top talent from the uni in the area you want them to stay. If they get a job and you can offer a mortgage then, that is good news....

There is always a risk but at the moment with government cuts, the council has to do something....
We have a growing uni area. To keep the top talent from the uni in the area you want them to stay. If they get a job and you can offer a mortgage then, that is good news.... There is always a risk but at the moment with government cuts, the council has to do something.... Bpl333
  • Score: 2

9:04am Sat 14 Jun 14

contric says...

will lloyds bank be coming round to fix the pot holes and cut the grass and empty the bins i pay money for this not for it to be lent to anyone the councils job is to provide services and as nearly everything they touch is a disaster another one is looming and to throw it open to anyone who has lived here for 12 months is a disgrace local homes should only go to bournemouth born people
will lloyds bank be coming round to fix the pot holes and cut the grass and empty the bins i pay money for this not for it to be lent to anyone the councils job is to provide services and as nearly everything they touch is a disaster another one is looming and to throw it open to anyone who has lived here for 12 months is a disgrace local homes should only go to bournemouth born people contric
  • Score: 5

9:33am Sat 14 Jun 14

boardsandphotos says...

contric wrote:
will lloyds bank be coming round to fix the pot holes and cut the grass and empty the bins i pay money for this not for it to be lent to anyone the councils job is to provide services and as nearly everything they touch is a disaster another one is looming and to throw it open to anyone who has lived here for 12 months is a disgrace local homes should only go to bournemouth born people
Isn't the job of the Council to provide services to the community? Is this not a service that will help those that live in the borough?

As many have said already, this is not a new concept, local authorities have been doing this for decades so what's the issue?

As for your last comment "local homes should only go to Bournemouth born People" - is that just via Council supported Mortgages or is that a more wide spread philosophy you hold? I mean, I know the fear mongers keep shouting "close our borders" but I didn't realise it had got down to a town level.
[quote][p][bold]contric[/bold] wrote: will lloyds bank be coming round to fix the pot holes and cut the grass and empty the bins i pay money for this not for it to be lent to anyone the councils job is to provide services and as nearly everything they touch is a disaster another one is looming and to throw it open to anyone who has lived here for 12 months is a disgrace local homes should only go to bournemouth born people[/p][/quote]Isn't the job of the Council to provide services to the community? Is this not a service that will help those that live in the borough? As many have said already, this is not a new concept, local authorities have been doing this for decades so what's the issue? As for your last comment "local homes should only go to Bournemouth born People" - is that just via Council supported Mortgages or is that a more wide spread philosophy you hold? I mean, I know the fear mongers keep shouting "close our borders" but I didn't realise it had got down to a town level. boardsandphotos
  • Score: 5

10:52am Sat 14 Jun 14

Jo__Go says...

In times of plenty, a great idea. When councils are struggling to fund front-line services, I'm not sure this is the best use of funds...
In times of plenty, a great idea. When councils are struggling to fund front-line services, I'm not sure this is the best use of funds... Jo__Go
  • Score: 2

11:01am Sat 14 Jun 14

muscliffman says...

If the Council are to apply the usual lending criteria to these mortgages then the borrower could and would simply obtain their loan from the usual banking sources. So what exactly is the point?

We can only presume that these mortgages will in some way differ from those normally available or more likely not available - but in what way? Will they be offered to buyers who present too great a risk for the usual lenders, and/or to those buying property from 'favoured' Council developments. Does the expression 'key worker' as quoted suggest these mortgages will be principally restricted to public sector employees offering better terms than those available to the rest of us from the normal marketplace?

Sadly because of this administration's track record most local residents will understandably view this new fiscal venture with great suspicion, I am sure most of us would far rather our Council concentrated on traditional things like emptying the bins and fixing the roads whilst leaving the risky money market to the plentiful private institutions already adequately serving it.
If the Council are to apply the usual lending criteria to these mortgages then the borrower could and would simply obtain their loan from the usual banking sources. So what exactly is the point? We can only presume that these mortgages will in some way differ from those normally available or more likely not available - but in what way? Will they be offered to buyers who present too great a risk for the usual lenders, and/or to those buying property from 'favoured' Council developments. Does the expression 'key worker' as quoted suggest these mortgages will be principally restricted to public sector employees offering better terms than those available to the rest of us from the normal marketplace? Sadly because of this administration's track record most local residents will understandably view this new fiscal venture with great suspicion, I am sure most of us would far rather our Council concentrated on traditional things like emptying the bins and fixing the roads whilst leaving the risky money market to the plentiful private institutions already adequately serving it. muscliffman
  • Score: 2

11:15am Sat 14 Jun 14

Azphreal says...

'“This is largely because high rents are making it difficult for first-time buyers to save a sufficient deposit. ' So how does this scheme help then? They are still having to pay the high rents so can not get a deposit together to pay the council. I hope that a body not connected to the council in ANY WAY is given oversight of thos scheme.
'“This is largely because high rents are making it difficult for first-time buyers to save a sufficient deposit. ' So how does this scheme help then? They are still having to pay the high rents so can not get a deposit together to pay the council. I hope that a body not connected to the council in ANY WAY is given oversight of thos scheme. Azphreal
  • Score: 0

11:20am Sat 14 Jun 14

Sir Beachy Head says...

These mortgages will be for 'key workers only' e.g teachers, nurses, police, fire brigade. Professionals.

the Spaniards behind the bar in wetherspoons won't be getting one.

Sounds like good idea all round.
These mortgages will be for 'key workers only' e.g teachers, nurses, police, fire brigade. Professionals. the Spaniards behind the bar in wetherspoons won't be getting one. Sounds like good idea all round. Sir Beachy Head
  • Score: -3

11:32am Sat 14 Jun 14

Lord Spring says...

Will this offer be to freehold properties only or will it include leasehold ones . If the borrower defaults it then becomes a council property to let out .
Will this offer be to freehold properties only or will it include leasehold ones . If the borrower defaults it then becomes a council property to let out . Lord Spring
  • Score: 3

11:34am Sat 14 Jun 14

Baysider says...

Azphreal wrote:
'“This is largely because high rents are making it difficult for first-time buyers to save a sufficient deposit. ' So how does this scheme help then? They are still having to pay the high rents so can not get a deposit together to pay the council. I hope that a body not connected to the council in ANY WAY is given oversight of thos scheme.
No you're right because the banking sector has made such a fabulous success of regulating itself hasn't it...
[quote][p][bold]Azphreal[/bold] wrote: '“This is largely because high rents are making it difficult for first-time buyers to save a sufficient deposit. ' So how does this scheme help then? They are still having to pay the high rents so can not get a deposit together to pay the council. I hope that a body not connected to the council in ANY WAY is given oversight of thos scheme.[/p][/quote]No you're right because the banking sector has made such a fabulous success of regulating itself hasn't it... Baysider
  • Score: 4

11:38am Sat 14 Jun 14

Broomers2003 says...

contric wrote:
will lloyds bank be coming round to fix the pot holes and cut the grass and empty the bins i pay money for this not for it to be lent to anyone the councils job is to provide services and as nearly everything they touch is a disaster another one is looming and to throw it open to anyone who has lived here for 12 months is a disgrace local homes should only go to bournemouth born people
I was born in Poole, lived in that authority for my first two years, before my parents moved to Bournemouth, where I lived for 30 years and worked for 15. And you're telling me I shouldn't be entitled to buy a home in Bournemouth under this scheme?!!!
[quote][p][bold]contric[/bold] wrote: will lloyds bank be coming round to fix the pot holes and cut the grass and empty the bins i pay money for this not for it to be lent to anyone the councils job is to provide services and as nearly everything they touch is a disaster another one is looming and to throw it open to anyone who has lived here for 12 months is a disgrace local homes should only go to bournemouth born people[/p][/quote]I was born in Poole, lived in that authority for my first two years, before my parents moved to Bournemouth, where I lived for 30 years and worked for 15. And you're telling me I shouldn't be entitled to buy a home in Bournemouth under this scheme?!!! Broomers2003
  • Score: 7

11:48am Sat 14 Jun 14

bluethinking says...

muscliffman wrote:
If the Council are to apply the usual lending criteria to these mortgages then the borrower could and would simply obtain their loan from the usual banking sources. So what exactly is the point?

We can only presume that these mortgages will in some way differ from those normally available or more likely not available - but in what way? Will they be offered to buyers who present too great a risk for the usual lenders, and/or to those buying property from 'favoured' Council developments. Does the expression 'key worker' as quoted suggest these mortgages will be principally restricted to public sector employees offering better terms than those available to the rest of us from the normal marketplace?

Sadly because of this administration's track record most local residents will understandably view this new fiscal venture with great suspicion, I am sure most of us would far rather our Council concentrated on traditional things like emptying the bins and fixing the roads whilst leaving the risky money market to the plentiful private institutions already adequately serving it.
This is part of the governments ever increasing hp inflation bribe to vote con at the next election. What ever your politics the world wide crash of 2008/9 should underline how bad fractional reserve banking is especially for the wider economy. Especially using an "asset" of housing as the leveraging tool to achieve it. Have a read about fractional reserve banking and understand how savers depositors money is not lent out, that's held as the reserve. So how is the money created?
[quote][p][bold]muscliffman[/bold] wrote: If the Council are to apply the usual lending criteria to these mortgages then the borrower could and would simply obtain their loan from the usual banking sources. So what exactly is the point? We can only presume that these mortgages will in some way differ from those normally available or more likely not available - but in what way? Will they be offered to buyers who present too great a risk for the usual lenders, and/or to those buying property from 'favoured' Council developments. Does the expression 'key worker' as quoted suggest these mortgages will be principally restricted to public sector employees offering better terms than those available to the rest of us from the normal marketplace? Sadly because of this administration's track record most local residents will understandably view this new fiscal venture with great suspicion, I am sure most of us would far rather our Council concentrated on traditional things like emptying the bins and fixing the roads whilst leaving the risky money market to the plentiful private institutions already adequately serving it.[/p][/quote]This is part of the governments ever increasing hp inflation bribe to vote con at the next election. What ever your politics the world wide crash of 2008/9 should underline how bad fractional reserve banking is especially for the wider economy. Especially using an "asset" of housing as the leveraging tool to achieve it. Have a read about fractional reserve banking and understand how savers depositors money is not lent out, that's held as the reserve. So how is the money created? bluethinking
  • Score: 6

12:51pm Sat 14 Jun 14

bosco1 says...

Has anyone like residents been consulted about this new Venture of the Council lending money. Was it voted as a yes/no ? It really is out of the councils depth to be able to lend money and vet people in a proper manner.The mortgage lenders at the moment have been hit by asking lots more questions when applying for a mortgage, will the council be following these new rules on lending.? Let the lenders lend money and the council stick to the jobs we pay for.
Has anyone like residents been consulted about this new Venture of the Council lending money. Was it voted as a yes/no ? It really is out of the councils depth to be able to lend money and vet people in a proper manner.The mortgage lenders at the moment have been hit by asking lots more questions when applying for a mortgage, will the council be following these new rules on lending.? Let the lenders lend money and the council stick to the jobs we pay for. bosco1
  • Score: 0

1:05pm Sat 14 Jun 14

boardsandphotos says...

bosco1 wrote:
Has anyone like residents been consulted about this new Venture of the Council lending money. Was it voted as a yes/no ? It really is out of the councils depth to be able to lend money and vet people in a proper manner.The mortgage lenders at the moment have been hit by asking lots more questions when applying for a mortgage, will the council be following these new rules on lending.? Let the lenders lend money and the council stick to the jobs we pay for.
You'd be surprised at the level of information Councils are able to access, try not paying your council tax for a couple of months and see how much information they have about you at the click of a button.
[quote][p][bold]bosco1[/bold] wrote: Has anyone like residents been consulted about this new Venture of the Council lending money. Was it voted as a yes/no ? It really is out of the councils depth to be able to lend money and vet people in a proper manner.The mortgage lenders at the moment have been hit by asking lots more questions when applying for a mortgage, will the council be following these new rules on lending.? Let the lenders lend money and the council stick to the jobs we pay for.[/p][/quote]You'd be surprised at the level of information Councils are able to access, try not paying your council tax for a couple of months and see how much information they have about you at the click of a button. boardsandphotos
  • Score: 0

1:10pm Sat 14 Jun 14

BmthNewshound says...

It doesn't matter who is offering the mortgage, the combination of high property prices and low wages mean that for many people owning a property in Bournemouth will never be achievable.
.
This scheme appears to be to hand over taxpayers money to people who have been turned down by traditional lenders (building societies and banks). There is probably a good reason why lenders will not lend to these people and Beesley should be honest about the high risk of bad debts which will ultimately be funded by the taxpayer.
.
It seems that Beesley won't be satisfied until he's bankrupt Bournemouth.
It doesn't matter who is offering the mortgage, the combination of high property prices and low wages mean that for many people owning a property in Bournemouth will never be achievable. . This scheme appears to be to hand over taxpayers money to people who have been turned down by traditional lenders (building societies and banks). There is probably a good reason why lenders will not lend to these people and Beesley should be honest about the high risk of bad debts which will ultimately be funded by the taxpayer. . It seems that Beesley won't be satisfied until he's bankrupt Bournemouth. BmthNewshound
  • Score: -1

1:15pm Sat 14 Jun 14

contric says...

if the scheme goes ahead its exactly for people like broomers who should benefit not someone who has been here for 12 months and i own a few properties and why shouldn,t i charge what rent i can get for them i think baysider ans azphreal would expect me to rent them out for as low as i could get and if you dont like the rent charged here move to burnley rochdale or some other place where you can afford it
if the scheme goes ahead its exactly for people like broomers who should benefit not someone who has been here for 12 months and i own a few properties and why shouldn,t i charge what rent i can get for them i think baysider ans azphreal would expect me to rent them out for as low as i could get and if you dont like the rent charged here move to burnley rochdale or some other place where you can afford it contric
  • Score: -1

1:28pm Sat 14 Jun 14

boardsandphotos says...

contric wrote:
if the scheme goes ahead its exactly for people like broomers who should benefit not someone who has been here for 12 months and i own a few properties and why shouldn,t i charge what rent i can get for them i think baysider ans azphreal would expect me to rent them out for as low as i could get and if you dont like the rent charged here move to burnley rochdale or some other place where you can afford it
Ha! The Irony...

In your first comment you state that people shouldn't be able to buy a house in Bournemouth if they've only lived here for 12 months, yet in your second comment you are quite happy to send 'those that can't afford it' presumably even 'Bournemouth Born' people off to other cheaper parts of the country where the rent is cheaper...
[quote][p][bold]contric[/bold] wrote: if the scheme goes ahead its exactly for people like broomers who should benefit not someone who has been here for 12 months and i own a few properties and why shouldn,t i charge what rent i can get for them i think baysider ans azphreal would expect me to rent them out for as low as i could get and if you dont like the rent charged here move to burnley rochdale or some other place where you can afford it[/p][/quote]Ha! The Irony... In your first comment you state that people shouldn't be able to buy a house in Bournemouth if they've only lived here for 12 months, yet in your second comment you are quite happy to send 'those that can't afford it' presumably even 'Bournemouth Born' people off to other cheaper parts of the country where the rent is cheaper... boardsandphotos
  • Score: 3

1:44pm Sat 14 Jun 14

contric says...

i look on bournemouth poole x,church as one my youngest was born in poole and although he is 22 he has a mortgaged property in moordown with the help of mum and dad but people on here should stop expecting things on the cheap and as i said if you cant afford living here move elsewhere or stop whining
i look on bournemouth poole x,church as one my youngest was born in poole and although he is 22 he has a mortgaged property in moordown with the help of mum and dad but people on here should stop expecting things on the cheap and as i said if you cant afford living here move elsewhere or stop whining contric
  • Score: 0

1:56pm Sat 14 Jun 14

samsmith says...

bosco1 wrote:
Has anyone like residents been consulted about this new Venture of the Council lending money. Was it voted as a yes/no ? It really is out of the councils depth to be able to lend money and vet people in a proper manner.The mortgage lenders at the moment have been hit by asking lots more questions when applying for a mortgage, will the council be following these new rules on lending.? Let the lenders lend money and the council stick to the jobs we pay for.
Totally agree but I would say the larger risk is on the borrower than the lender. And as said before it is not a new venture for councils to do. Quite mainstream when you were a wee nipper.
Plus if revenues from lending can support 'the jobs we pay for', there is a lesser burden on the supply of money for these jobs coming from our rates.
[quote][p][bold]bosco1[/bold] wrote: Has anyone like residents been consulted about this new Venture of the Council lending money. Was it voted as a yes/no ? It really is out of the councils depth to be able to lend money and vet people in a proper manner.The mortgage lenders at the moment have been hit by asking lots more questions when applying for a mortgage, will the council be following these new rules on lending.? Let the lenders lend money and the council stick to the jobs we pay for.[/p][/quote]Totally agree but I would say the larger risk is on the borrower than the lender. And as said before it is not a new venture for councils to do. Quite mainstream when you were a wee nipper. Plus if revenues from lending can support 'the jobs we pay for', there is a lesser burden on the supply of money for these jobs coming from our rates. samsmith
  • Score: 3

2:04pm Sat 14 Jun 14

Lord Spring says...

Sir Beachy Head wrote:
These mortgages will be for 'key workers only' e.g teachers, nurses, police, fire brigade. Professionals.

the Spaniards behind the bar in wetherspoons won't be getting one.

Sounds like good idea all round.
The Spaniards will not be keen to serve Hollandaise Sauce with your meal in the Moon today
[quote][p][bold]Sir Beachy Head[/bold] wrote: These mortgages will be for 'key workers only' e.g teachers, nurses, police, fire brigade. Professionals. the Spaniards behind the bar in wetherspoons won't be getting one. Sounds like good idea all round.[/p][/quote]The Spaniards will not be keen to serve Hollandaise Sauce with your meal in the Moon today Lord Spring
  • Score: 4

2:12pm Sat 14 Jun 14

Kiki1973 says...

Where are people getting the idea that this is an option if banks and building societies turn people down? It says nothing about that in the article.... This is just another option, one that has actually been tested and widely used in the past and is still used in many places, not a new concept. What this will do that other lenders don't do, is keep the borrower in the borough. With other lenders, you can keep your mortgage but change the property, something I would presume to be precluded in this scheme. Lastly, where are people getting the idea that this is costing the council? This will make money for them.... Lenders make money, that's how banks turn big profits, from the interest charges. So where is the down-side? Attracting key workers with incentives, returning to a tried and tested model, retaining key workers and making profit.... Don't understand why there's negativity to this?
Where are people getting the idea that this is an option if banks and building societies turn people down? It says nothing about that in the article.... This is just another option, one that has actually been tested and widely used in the past and is still used in many places, not a new concept. What this will do that other lenders don't do, is keep the borrower in the borough. With other lenders, you can keep your mortgage but change the property, something I would presume to be precluded in this scheme. Lastly, where are people getting the idea that this is costing the council? This will make money for them.... Lenders make money, that's how banks turn big profits, from the interest charges. So where is the down-side? Attracting key workers with incentives, returning to a tried and tested model, retaining key workers and making profit.... Don't understand why there's negativity to this? Kiki1973
  • Score: 6

2:16pm Sat 14 Jun 14

Sir Beachy Head says...

Lord Spring wrote:
Sir Beachy Head wrote:
These mortgages will be for 'key workers only' e.g teachers, nurses, police, fire brigade. Professionals.

the Spaniards behind the bar in wetherspoons won't be getting one.

Sounds like good idea all round.
The Spaniards will not be keen to serve Hollandaise Sauce with your meal in the Moon today
No indeed. They don't like up um as Jonesy would say. Mind you they lost their first game in 2010 and went on to win.
I never go in on a Saturday, far too busy and sweaty in there.
[quote][p][bold]Lord Spring[/bold] wrote: [quote][p][bold]Sir Beachy Head[/bold] wrote: These mortgages will be for 'key workers only' e.g teachers, nurses, police, fire brigade. Professionals. the Spaniards behind the bar in wetherspoons won't be getting one. Sounds like good idea all round.[/p][/quote]The Spaniards will not be keen to serve Hollandaise Sauce with your meal in the Moon today[/p][/quote]No indeed. They don't like up um as Jonesy would say. Mind you they lost their first game in 2010 and went on to win. I never go in on a Saturday, far too busy and sweaty in there. Sir Beachy Head
  • Score: 0

3:40pm Sat 14 Jun 14

M0Z says...

The council could get its fingers badly burned here. If they start lending a couple of hundred thousand pounds a time, it’ll very quickly build to an enormous amount – backed only by property assets that, in my opinion, are over valued. I remember when the London property bubble of the late 1980s burst – prices in Bournemouth fell much worse – about 40% between 1989 and 1994 (more like 50% in real terms, due to high inflation at the time). I’m not suggesting a correction would be that severe today, but I do think the likelihood of a 95% mortgage going into negative equity is very real.

Plenty of people handed keys back to their lenders and walked away when they went negative, others had their properties repossessed when they fell into unmanaged arrears. But today, wouldn’t this present a real dilemma if the mortgage lender was the council, who might then have obligations to re-house the homeless mortgagee? And even worse if the mortgagee was a ‘key worker’ council employee who’d lost their job for some reason? I fear it could create an underclass of untouchables – mortgagees that couldn’t be sacked or repossessed because of the political consequences.

And then there’s interest rates. We’ve had an unprecedented long run of low rates that many first time buyers might think is normal. But it’s widely known that base rates will slowly creep from 0.5% to 2.5%, with the first hikes later this year. The impact of that on the cost of any type of borrowing will be substantial. People that can’t obtain a commercial mortgage are probably the least able to cope with such rises. Anyone struggling to get a six times multiple on combined income may well be maxing out their credit cards to help fund the 5% deposit, stamp duty and legal costs – maybe other debts as well – predicted rate rises could slaughter them. And I suspect the first rate rise might trigger the start of a correction (in 1989 it was the withdrawal of joint MIRAS that caused an immediate and sustained collapse, even though by itself it was a fairly small trigger).

Overall it just seems the wrong thing for the council to be doing. These schemes don’t help – they just inflate house prices further, at worst they could also saddle the taxpayer with big long term problems.
The council could get its fingers badly burned here. If they start lending a couple of hundred thousand pounds a time, it’ll very quickly build to an enormous amount – backed only by property assets that, in my opinion, are over valued. I remember when the London property bubble of the late 1980s burst – prices in Bournemouth fell much worse – about 40% between 1989 and 1994 (more like 50% in real terms, due to high inflation at the time). I’m not suggesting a correction would be that severe today, but I do think the likelihood of a 95% mortgage going into negative equity is very real. Plenty of people handed keys back to their lenders and walked away when they went negative, others had their properties repossessed when they fell into unmanaged arrears. But today, wouldn’t this present a real dilemma if the mortgage lender was the council, who might then have obligations to re-house the homeless mortgagee? And even worse if the mortgagee was a ‘key worker’ council employee who’d lost their job for some reason? I fear it could create an underclass of untouchables – mortgagees that couldn’t be sacked or repossessed because of the political consequences. And then there’s interest rates. We’ve had an unprecedented long run of low rates that many first time buyers might think is normal. But it’s widely known that base rates will slowly creep from 0.5% to 2.5%, with the first hikes later this year. The impact of that on the cost of any type of borrowing will be substantial. People that can’t obtain a commercial mortgage are probably the least able to cope with such rises. Anyone struggling to get a six times multiple on combined income may well be maxing out their credit cards to help fund the 5% deposit, stamp duty and legal costs – maybe other debts as well – predicted rate rises could slaughter them. And I suspect the first rate rise might trigger the start of a correction (in 1989 it was the withdrawal of joint MIRAS that caused an immediate and sustained collapse, even though by itself it was a fairly small trigger). Overall it just seems the wrong thing for the council to be doing. These schemes don’t help – they just inflate house prices further, at worst they could also saddle the taxpayer with big long term problems. M0Z
  • Score: 4

4:06pm Sat 14 Jun 14

rozmister says...

contric wrote:
i look on bournemouth poole x,church as one my youngest was born in poole and although he is 22 he has a mortgaged property in moordown with the help of mum and dad but people on here should stop expecting things on the cheap and as i said if you cant afford living here move elsewhere or stop whining
Not everyone has mummy and daddy to fund their housing. If your child hadn't been born into your family they wouldn't have had an opportunity to buy a house, if that was the case would you have been telling him to move hundreds of miles away where housing are cheaper? It's a bit rich to say people want things cheap when your child only got ahead because of you.
[quote][p][bold]contric[/bold] wrote: i look on bournemouth poole x,church as one my youngest was born in poole and although he is 22 he has a mortgaged property in moordown with the help of mum and dad but people on here should stop expecting things on the cheap and as i said if you cant afford living here move elsewhere or stop whining[/p][/quote]Not everyone has mummy and daddy to fund their housing. If your child hadn't been born into your family they wouldn't have had an opportunity to buy a house, if that was the case would you have been telling him to move hundreds of miles away where housing are cheaper? It's a bit rich to say people want things cheap when your child only got ahead because of you. rozmister
  • Score: 4

4:36pm Sat 14 Jun 14

beautifulcornwall says...

we-shall-see wrote:
Why have they chosen to lend to anyone who has lived in the area for only 12 months? Why not restrict the lending to those who were born here or have lived here for many years?

I can see the greedy amongst us taking advantage of the cheap interest rates to buy a house, then sell it on for profit and so on. Either that or buy to rent it out and make a fortune on rent - probably from taking in benefit claimants and getting the council to pay the rent. Double whammy!

Not so sure this a good idea, since if most people cannot get a mortgage through a bank, there is obviously a risk .....
To right, in Cornwall there are many estate agent windows advertising houses and cottages for sale with the proviso that any prospective buyer must have lived in Cornwall for 5 years and in some cases much longer, this stops the buying up of properties for holiday let and also buying up to make a quick profit later on.
[quote][p][bold]we-shall-see[/bold] wrote: Why have they chosen to lend to anyone who has lived in the area for only 12 months? Why not restrict the lending to those who were born here or have lived here for many years? I can see the greedy amongst us taking advantage of the cheap interest rates to buy a house, then sell it on for profit and so on. Either that or buy to rent it out and make a fortune on rent - probably from taking in benefit claimants and getting the council to pay the rent. Double whammy! Not so sure this a good idea, since if most people cannot get a mortgage through a bank, there is obviously a risk .....[/p][/quote]To right, in Cornwall there are many estate agent windows advertising houses and cottages for sale with the proviso that any prospective buyer must have lived in Cornwall for 5 years and in some cases much longer, this stops the buying up of properties for holiday let and also buying up to make a quick profit later on. beautifulcornwall
  • Score: 2

4:50pm Sat 14 Jun 14

old duffa says...

The point is if the council have large funds stashed away and want to make money on interest and lend to people to buy property in bournemouth

in that case use the money and buy some houses/flat off local developers and then rent them out to key workers

also i paid the council £20,000 the other day for affordable contribution for a 1 bed flat,they are happy to take 20k,but only left me 15 k profit,and i put the money up,work that one out
The point is if the council have large funds stashed away and want to make money on interest and lend to people to buy property in bournemouth in that case use the money and buy some houses/flat off local developers and then rent them out to key workers also i paid the council £20,000 the other day for affordable contribution for a 1 bed flat,they are happy to take 20k,but only left me 15 k profit,and i put the money up,work that one out old duffa
  • Score: 0

4:55pm Sat 14 Jun 14

Broomers2003 says...

contric wrote:
i look on bournemouth poole x,church as one my youngest was born in poole and although he is 22 he has a mortgaged property in moordown with the help of mum and dad but people on here should stop expecting things on the cheap and as i said if you cant afford living here move elsewhere or stop whining
Thanks for clarifying the Bmth/Poole/Xch thing. As someone who has lived in the area for so long and contributed to the local economy, paying my taxes, in a steady reliable job that pays well etc, I think I'd be eligible for such a scheme.
If this scheme had launched 16 months ago I'd have enquired further, however a year ago next week I completed on my first property in Poole and am very happy to stay there!
[quote][p][bold]contric[/bold] wrote: i look on bournemouth poole x,church as one my youngest was born in poole and although he is 22 he has a mortgaged property in moordown with the help of mum and dad but people on here should stop expecting things on the cheap and as i said if you cant afford living here move elsewhere or stop whining[/p][/quote]Thanks for clarifying the Bmth/Poole/Xch thing. As someone who has lived in the area for so long and contributed to the local economy, paying my taxes, in a steady reliable job that pays well etc, I think I'd be eligible for such a scheme. If this scheme had launched 16 months ago I'd have enquired further, however a year ago next week I completed on my first property in Poole and am very happy to stay there! Broomers2003
  • Score: 0

4:57pm Sat 14 Jun 14

Baysider says...

contric wrote:
if the scheme goes ahead its exactly for people like broomers who should benefit not someone who has been here for 12 months and i own a few properties and why shouldn,t i charge what rent i can get for them i think baysider ans azphreal would expect me to rent them out for as low as i could get and if you dont like the rent charged here move to burnley rochdale or some other place where you can afford it
Do me a favour and don't put words into my mouth eh! Unless you can direct me to my post that says anything like what you suggest why not just shut up and stop second guessing what I may or may not think about a subject. As far as I can see I'm one of the very few on here whose opinion changes with the facts or experience rather than blindly following a dogmatic agenda.
[quote][p][bold]contric[/bold] wrote: if the scheme goes ahead its exactly for people like broomers who should benefit not someone who has been here for 12 months and i own a few properties and why shouldn,t i charge what rent i can get for them i think baysider ans azphreal would expect me to rent them out for as low as i could get and if you dont like the rent charged here move to burnley rochdale or some other place where you can afford it[/p][/quote]Do me a favour and don't put words into my mouth eh! Unless you can direct me to my post that says anything like what you suggest why not just shut up and stop second guessing what I may or may not think about a subject. As far as I can see I'm one of the very few on here whose opinion changes with the facts or experience rather than blindly following a dogmatic agenda. Baysider
  • Score: 0

5:09pm Sat 14 Jun 14

contric says...

good luck broomers i wish you all the luck as i said if they go ahead with this and i dont agree with it i hope your succesful and if you want to have a go if things dont work out you are entitled to as a local as for the outsiders moaning they helped to cause the problem by moving here so the quicker they leave the better us true bournemouth people will feel but also if i was to see an opportunity in this scheme i will certainly take it
good luck broomers i wish you all the luck as i said if they go ahead with this and i dont agree with it i hope your succesful and if you want to have a go if things dont work out you are entitled to as a local as for the outsiders moaning they helped to cause the problem by moving here so the quicker they leave the better us true bournemouth people will feel but also if i was to see an opportunity in this scheme i will certainly take it contric
  • Score: 1

5:09pm Sat 14 Jun 14

contric says...

good luck broomers i wish you all the luck as i said if they go ahead with this and i dont agree with it i hope your succesful and if you want to have a go if things dont work out you are entitled to as a local as for the outsiders moaning they helped to cause the problem by moving here so the quicker they leave the better us true bournemouth people will feel but also if i was to see an opportunity in this scheme i will certainly take it
good luck broomers i wish you all the luck as i said if they go ahead with this and i dont agree with it i hope your succesful and if you want to have a go if things dont work out you are entitled to as a local as for the outsiders moaning they helped to cause the problem by moving here so the quicker they leave the better us true bournemouth people will feel but also if i was to see an opportunity in this scheme i will certainly take it contric
  • Score: 0

5:39pm Sat 14 Jun 14

boardsandphotos says...

beautifulcornwall wrote:
we-shall-see wrote:
Why have they chosen to lend to anyone who has lived in the area for only 12 months? Why not restrict the lending to those who were born here or have lived here for many years?

I can see the greedy amongst us taking advantage of the cheap interest rates to buy a house, then sell it on for profit and so on. Either that or buy to rent it out and make a fortune on rent - probably from taking in benefit claimants and getting the council to pay the rent. Double whammy!

Not so sure this a good idea, since if most people cannot get a mortgage through a bank, there is obviously a risk .....
To right, in Cornwall there are many estate agent windows advertising houses and cottages for sale with the proviso that any prospective buyer must have lived in Cornwall for 5 years and in some cases much longer, this stops the buying up of properties for holiday let and also buying up to make a quick profit later on.
Welcome to Cornwall, welcome to the dark ages, beware of the dragons...
[quote][p][bold]beautifulcornwall[/bold] wrote: [quote][p][bold]we-shall-see[/bold] wrote: Why have they chosen to lend to anyone who has lived in the area for only 12 months? Why not restrict the lending to those who were born here or have lived here for many years? I can see the greedy amongst us taking advantage of the cheap interest rates to buy a house, then sell it on for profit and so on. Either that or buy to rent it out and make a fortune on rent - probably from taking in benefit claimants and getting the council to pay the rent. Double whammy! Not so sure this a good idea, since if most people cannot get a mortgage through a bank, there is obviously a risk .....[/p][/quote]To right, in Cornwall there are many estate agent windows advertising houses and cottages for sale with the proviso that any prospective buyer must have lived in Cornwall for 5 years and in some cases much longer, this stops the buying up of properties for holiday let and also buying up to make a quick profit later on.[/p][/quote]Welcome to Cornwall, welcome to the dark ages, beware of the dragons... boardsandphotos
  • Score: 0

6:08pm Sat 14 Jun 14

beautifulcornwall says...

boardsandphotos wrote:
beautifulcornwall wrote:
we-shall-see wrote:
Why have they chosen to lend to anyone who has lived in the area for only 12 months? Why not restrict the lending to those who were born here or have lived here for many years?

I can see the greedy amongst us taking advantage of the cheap interest rates to buy a house, then sell it on for profit and so on. Either that or buy to rent it out and make a fortune on rent - probably from taking in benefit claimants and getting the council to pay the rent. Double whammy!

Not so sure this a good idea, since if most people cannot get a mortgage through a bank, there is obviously a risk .....
To right, in Cornwall there are many estate agent windows advertising houses and cottages for sale with the proviso that any prospective buyer must have lived in Cornwall for 5 years and in some cases much longer, this stops the buying up of properties for holiday let and also buying up to make a quick profit later on.
Welcome to Cornwall, welcome to the dark ages, beware of the dragons...
I do believe that I would rather put up with the dragons who run our local councils than the muppets who run Dorset councils.
[quote][p][bold]boardsandphotos[/bold] wrote: [quote][p][bold]beautifulcornwall[/bold] wrote: [quote][p][bold]we-shall-see[/bold] wrote: Why have they chosen to lend to anyone who has lived in the area for only 12 months? Why not restrict the lending to those who were born here or have lived here for many years? I can see the greedy amongst us taking advantage of the cheap interest rates to buy a house, then sell it on for profit and so on. Either that or buy to rent it out and make a fortune on rent - probably from taking in benefit claimants and getting the council to pay the rent. Double whammy! Not so sure this a good idea, since if most people cannot get a mortgage through a bank, there is obviously a risk .....[/p][/quote]To right, in Cornwall there are many estate agent windows advertising houses and cottages for sale with the proviso that any prospective buyer must have lived in Cornwall for 5 years and in some cases much longer, this stops the buying up of properties for holiday let and also buying up to make a quick profit later on.[/p][/quote]Welcome to Cornwall, welcome to the dark ages, beware of the dragons...[/p][/quote]I do believe that I would rather put up with the dragons who run our local councils than the muppets who run Dorset councils. beautifulcornwall
  • Score: -2

7:31pm Sat 14 Jun 14

bluethinking says...

BmthNewshound wrote:
It doesn't matter who is offering the mortgage, the combination of high property prices and low wages mean that for many people owning a property in Bournemouth will never be achievable.
.
This scheme appears to be to hand over taxpayers money to people who have been turned down by traditional lenders (building societies and banks). There is probably a good reason why lenders will not lend to these people and Beesley should be honest about the high risk of bad debts which will ultimately be funded by the taxpayer.
.
It seems that Beesley won't be satisfied until he's bankrupt Bournemouth.
No taxpayers money will be handed over. The money is clicked out of thin air once the agreement is signed. It's called fractional reserve banking. The council might have £100 million in cash sterling on deposit this means they can click upto 15 to 20 times that amount in new money to lend out. No tax payers money will be lent out no risk as no existing money was brought to the table and no loss if it's not paid back. Think about it.
[quote][p][bold]BmthNewshound[/bold] wrote: It doesn't matter who is offering the mortgage, the combination of high property prices and low wages mean that for many people owning a property in Bournemouth will never be achievable. . This scheme appears to be to hand over taxpayers money to people who have been turned down by traditional lenders (building societies and banks). There is probably a good reason why lenders will not lend to these people and Beesley should be honest about the high risk of bad debts which will ultimately be funded by the taxpayer. . It seems that Beesley won't be satisfied until he's bankrupt Bournemouth.[/p][/quote]No taxpayers money will be handed over. The money is clicked out of thin air once the agreement is signed. It's called fractional reserve banking. The council might have £100 million in cash sterling on deposit this means they can click upto 15 to 20 times that amount in new money to lend out. No tax payers money will be lent out no risk as no existing money was brought to the table and no loss if it's not paid back. Think about it. bluethinking
  • Score: 4

8:52pm Sat 14 Jun 14

M0Z says...

bluethinking wrote:
BmthNewshound wrote:
It doesn't matter who is offering the mortgage, the combination of high property prices and low wages mean that for many people owning a property in Bournemouth will never be achievable.
.
This scheme appears to be to hand over taxpayers money to people who have been turned down by traditional lenders (building societies and banks). There is probably a good reason why lenders will not lend to these people and Beesley should be honest about the high risk of bad debts which will ultimately be funded by the taxpayer.
.
It seems that Beesley won't be satisfied until he's bankrupt Bournemouth.
No taxpayers money will be handed over. The money is clicked out of thin air once the agreement is signed. It's called fractional reserve banking. The council might have £100 million in cash sterling on deposit this means they can click upto 15 to 20 times that amount in new money to lend out. No tax payers money will be lent out no risk as no existing money was brought to the table and no loss if it's not paid back. Think about it.
Surely that’s nonsense. The money needs to be raised somehow, and if it’s not repaid there will be repercussions. Either government debt will become more expensive (bonds etc), or sterling exchange rates will weaken against our international lenders – or both. The idea that bad lending can be derivatised, traded and leveraged in the risk free way you suggest was the root cause of the 2008 collapse and our current debt crisis. The taxpayer will again be liable for the cost.
[quote][p][bold]bluethinking[/bold] wrote: [quote][p][bold]BmthNewshound[/bold] wrote: It doesn't matter who is offering the mortgage, the combination of high property prices and low wages mean that for many people owning a property in Bournemouth will never be achievable. . This scheme appears to be to hand over taxpayers money to people who have been turned down by traditional lenders (building societies and banks). There is probably a good reason why lenders will not lend to these people and Beesley should be honest about the high risk of bad debts which will ultimately be funded by the taxpayer. . It seems that Beesley won't be satisfied until he's bankrupt Bournemouth.[/p][/quote]No taxpayers money will be handed over. The money is clicked out of thin air once the agreement is signed. It's called fractional reserve banking. The council might have £100 million in cash sterling on deposit this means they can click upto 15 to 20 times that amount in new money to lend out. No tax payers money will be lent out no risk as no existing money was brought to the table and no loss if it's not paid back. Think about it.[/p][/quote]Surely that’s nonsense. The money needs to be raised somehow, and if it’s not repaid there will be repercussions. Either government debt will become more expensive (bonds etc), or sterling exchange rates will weaken against our international lenders – or both. The idea that bad lending can be derivatised, traded and leveraged in the risk free way you suggest was the root cause of the 2008 collapse and our current debt crisis. The taxpayer will again be liable for the cost. M0Z
  • Score: -1

8:59pm Sat 14 Jun 14

M0Z says...

contric wrote:
good luck broomers i wish you all the luck as i said if they go ahead with this and i dont agree with it i hope your succesful and if you want to have a go if things dont work out you are entitled to as a local as for the outsiders moaning they helped to cause the problem by moving here so the quicker they leave the better us true bournemouth people will feel but also if i was to see an opportunity in this scheme i will certainly take it
I’m not comfortable with your comments about ‘true Bournemouth people’ and that for others ‘the quicker they leave the better’. I was born and raised in the Thames Valley, but Bournemouth has been my home for the last 30 years – even though my work has often required a lot of UK & international travel. I’ve spent an awful lot of money in the local economy, paid a shed load of taxes and created businesses that currently employ dozens of longstanding local staff. Not crappy zero hours jobs on minimum wage in care homes, hospitality, tourism, call centres or financial services admin – I mean skilled permanent full time jobs typically earning £30k-£80k. The kind of jobs Bournemouth needs more of. The kind of jobs that allow people to afford mortgages. The kind of jobs that often require fresh thinking and experience from people outside the region to create and sustain them. I do however agree with you that relocating for work and lifestyle affordability is a normal thing to do, and that anyone trying to live beyond their own earnings shouldn’t assume the rest of us are willing or able to subsidise them.
[quote][p][bold]contric[/bold] wrote: good luck broomers i wish you all the luck as i said if they go ahead with this and i dont agree with it i hope your succesful and if you want to have a go if things dont work out you are entitled to as a local as for the outsiders moaning they helped to cause the problem by moving here so the quicker they leave the better us true bournemouth people will feel but also if i was to see an opportunity in this scheme i will certainly take it[/p][/quote]I’m not comfortable with your comments about ‘true Bournemouth people’ and that for others ‘the quicker they leave the better’. I was born and raised in the Thames Valley, but Bournemouth has been my home for the last 30 years – even though my work has often required a lot of UK & international travel. I’ve spent an awful lot of money in the local economy, paid a shed load of taxes and created businesses that currently employ dozens of longstanding local staff. Not crappy zero hours jobs on minimum wage in care homes, hospitality, tourism, call centres or financial services admin – I mean skilled permanent full time jobs typically earning £30k-£80k. The kind of jobs Bournemouth needs more of. The kind of jobs that allow people to afford mortgages. The kind of jobs that often require fresh thinking and experience from people outside the region to create and sustain them. I do however agree with you that relocating for work and lifestyle affordability is a normal thing to do, and that anyone trying to live beyond their own earnings shouldn’t assume the rest of us are willing or able to subsidise them. M0Z
  • Score: 4

9:20pm Sat 14 Jun 14

Sir Beachy Head says...

boardsandphotos wrote:
beautifulcornwall wrote:
we-shall-see wrote:
Why have they chosen to lend to anyone who has lived in the area for only 12 months? Why not restrict the lending to those who were born here or have lived here for many years?

I can see the greedy amongst us taking advantage of the cheap interest rates to buy a house, then sell it on for profit and so on. Either that or buy to rent it out and make a fortune on rent - probably from taking in benefit claimants and getting the council to pay the rent. Double whammy!

Not so sure this a good idea, since if most people cannot get a mortgage through a bank, there is obviously a risk .....
To right, in Cornwall there are many estate agent windows advertising houses and cottages for sale with the proviso that any prospective buyer must have lived in Cornwall for 5 years and in some cases much longer, this stops the buying up of properties for holiday let and also buying up to make a quick profit later on.
Welcome to Cornwall, welcome to the dark ages, beware of the dragons...
To be fair Cornwall has been ruined by people like Richard and Judy that buy a house and use it for 4 weeks a year. The locals are priced out by poor wages and lack of houses. In the winter villages are empty as all the owners are back in their main home in London.
[quote][p][bold]boardsandphotos[/bold] wrote: [quote][p][bold]beautifulcornwall[/bold] wrote: [quote][p][bold]we-shall-see[/bold] wrote: Why have they chosen to lend to anyone who has lived in the area for only 12 months? Why not restrict the lending to those who were born here or have lived here for many years? I can see the greedy amongst us taking advantage of the cheap interest rates to buy a house, then sell it on for profit and so on. Either that or buy to rent it out and make a fortune on rent - probably from taking in benefit claimants and getting the council to pay the rent. Double whammy! Not so sure this a good idea, since if most people cannot get a mortgage through a bank, there is obviously a risk .....[/p][/quote]To right, in Cornwall there are many estate agent windows advertising houses and cottages for sale with the proviso that any prospective buyer must have lived in Cornwall for 5 years and in some cases much longer, this stops the buying up of properties for holiday let and also buying up to make a quick profit later on.[/p][/quote]Welcome to Cornwall, welcome to the dark ages, beware of the dragons...[/p][/quote]To be fair Cornwall has been ruined by people like Richard and Judy that buy a house and use it for 4 weeks a year. The locals are priced out by poor wages and lack of houses. In the winter villages are empty as all the owners are back in their main home in London. Sir Beachy Head
  • Score: 1

12:40am Sun 15 Jun 14

HRH of Boscombe says...

Sir Beachy Head wrote:
These mortgages will be for 'key workers only' e.g teachers, nurses, police, fire brigade. Professionals.

the Spaniards behind the bar in wetherspoons won't be getting one.

Sounds like good idea all round.
In a tourist town?
.
Lithuanian Choc Ice sellers and Polish pole dancers will be key workers
[quote][p][bold]Sir Beachy Head[/bold] wrote: These mortgages will be for 'key workers only' e.g teachers, nurses, police, fire brigade. Professionals. the Spaniards behind the bar in wetherspoons won't be getting one. Sounds like good idea all round.[/p][/quote]In a tourist town? . Lithuanian Choc Ice sellers and Polish pole dancers will be key workers HRH of Boscombe
  • Score: -3

1:46am Sun 15 Jun 14

guisselle says...

Good old fashioned class war is rearing up again as per usual! Key workers
in a tourist town can be cleaners cooks bar staff, where would Bournemouth
and Poole be without them? The point is our young people need to have a
home to be able to bring up their families. We live in an expensive area and
more homes need to be built. Currently there is a petition trying to stop new
building by Raglan housing association. I understand that green fields are
under threat and the area is near Wimborne and Broadstone, a popular catchment for schools.
Good old fashioned class war is rearing up again as per usual! Key workers in a tourist town can be cleaners cooks bar staff, where would Bournemouth and Poole be without them? The point is our young people need to have a home to be able to bring up their families. We live in an expensive area and more homes need to be built. Currently there is a petition trying to stop new building by Raglan housing association. I understand that green fields are under threat and the area is near Wimborne and Broadstone, a popular catchment for schools. guisselle
  • Score: 1

1:30pm Sun 15 Jun 14

rozmister says...

Sir Beachy Head wrote:
boardsandphotos wrote:
beautifulcornwall wrote:
we-shall-see wrote:
Why have they chosen to lend to anyone who has lived in the area for only 12 months? Why not restrict the lending to those who were born here or have lived here for many years?

I can see the greedy amongst us taking advantage of the cheap interest rates to buy a house, then sell it on for profit and so on. Either that or buy to rent it out and make a fortune on rent - probably from taking in benefit claimants and getting the council to pay the rent. Double whammy!

Not so sure this a good idea, since if most people cannot get a mortgage through a bank, there is obviously a risk .....
To right, in Cornwall there are many estate agent windows advertising houses and cottages for sale with the proviso that any prospective buyer must have lived in Cornwall for 5 years and in some cases much longer, this stops the buying up of properties for holiday let and also buying up to make a quick profit later on.
Welcome to Cornwall, welcome to the dark ages, beware of the dragons...
To be fair Cornwall has been ruined by people like Richard and Judy that buy a house and use it for 4 weeks a year. The locals are priced out by poor wages and lack of houses. In the winter villages are empty as all the owners are back in their main home in London.
Couldn't agree more. I lived there when I was younger and the wages are about half of Bournemouth wages but the rents are just as high. Even skilled jobs demanding qualifications still pay significantly less then in the South!
[quote][p][bold]Sir Beachy Head[/bold] wrote: [quote][p][bold]boardsandphotos[/bold] wrote: [quote][p][bold]beautifulcornwall[/bold] wrote: [quote][p][bold]we-shall-see[/bold] wrote: Why have they chosen to lend to anyone who has lived in the area for only 12 months? Why not restrict the lending to those who were born here or have lived here for many years? I can see the greedy amongst us taking advantage of the cheap interest rates to buy a house, then sell it on for profit and so on. Either that or buy to rent it out and make a fortune on rent - probably from taking in benefit claimants and getting the council to pay the rent. Double whammy! Not so sure this a good idea, since if most people cannot get a mortgage through a bank, there is obviously a risk .....[/p][/quote]To right, in Cornwall there are many estate agent windows advertising houses and cottages for sale with the proviso that any prospective buyer must have lived in Cornwall for 5 years and in some cases much longer, this stops the buying up of properties for holiday let and also buying up to make a quick profit later on.[/p][/quote]Welcome to Cornwall, welcome to the dark ages, beware of the dragons...[/p][/quote]To be fair Cornwall has been ruined by people like Richard and Judy that buy a house and use it for 4 weeks a year. The locals are priced out by poor wages and lack of houses. In the winter villages are empty as all the owners are back in their main home in London.[/p][/quote]Couldn't agree more. I lived there when I was younger and the wages are about half of Bournemouth wages but the rents are just as high. Even skilled jobs demanding qualifications still pay significantly less then in the South! rozmister
  • Score: 0

3:13pm Mon 16 Jun 14

MattGillett says...

The greatest risk to a lender is not default on the payments, it is fraud.
i.e. You lend £125,000 for a property, the solicitors pay the vendors and then suddenly the purchasers disappear and the money has been washed into an account somewhere with a fairly impenetrable banking system like Nigeria. I worry about the due diligence BBC have undertaken. In a post MMR environment, lending securely, on such a smale scale to housebuyers either wouldn't have sufficient controls OR would breach affordabilty or sutainabilty rules OR would make an opportunity loss.
The greatest risk to a lender is not default on the payments, it is fraud. i.e. You lend £125,000 for a property, the solicitors pay the vendors and then suddenly the purchasers disappear and the money has been washed into an account somewhere with a fairly impenetrable banking system like Nigeria. I worry about the due diligence BBC have undertaken. In a post MMR environment, lending securely, on such a smale scale to housebuyers either wouldn't have sufficient controls OR would breach affordabilty or sutainabilty rules OR would make an opportunity loss. MattGillett
  • Score: 2

6:00pm Mon 16 Jun 14

MattGillett says...

bluethinking wrote:
BmthNewshound wrote:
It doesn't matter who is offering the mortgage, the combination of high property prices and low wages mean that for many people owning a property in Bournemouth will never be achievable.
.
This scheme appears to be to hand over taxpayers money to people who have been turned down by traditional lenders (building societies and banks). There is probably a good reason why lenders will not lend to these people and Beesley should be honest about the high risk of bad debts which will ultimately be funded by the taxpayer.
.
It seems that Beesley won't be satisfied until he's bankrupt Bournemouth.
No taxpayers money will be handed over. The money is clicked out of thin air once the agreement is signed. It's called fractional reserve banking. The council might have £100 million in cash sterling on deposit this means they can click upto 15 to 20 times that amount in new money to lend out. No tax payers money will be lent out no risk as no existing money was brought to the table and no loss if it's not paid back. Think about it.
They still have to accept principal risk, I realise this can be indemnified, but on this scale that could only be realistically be done by using a 3rd party bank given the complexity of mortgage regulation. This doesn't appear to be the case.
Commercial loans are a possiblity but they don't seem to be offered in this article and would lead to potential conflicts of interest as a council.
[quote][p][bold]bluethinking[/bold] wrote: [quote][p][bold]BmthNewshound[/bold] wrote: It doesn't matter who is offering the mortgage, the combination of high property prices and low wages mean that for many people owning a property in Bournemouth will never be achievable. . This scheme appears to be to hand over taxpayers money to people who have been turned down by traditional lenders (building societies and banks). There is probably a good reason why lenders will not lend to these people and Beesley should be honest about the high risk of bad debts which will ultimately be funded by the taxpayer. . It seems that Beesley won't be satisfied until he's bankrupt Bournemouth.[/p][/quote]No taxpayers money will be handed over. The money is clicked out of thin air once the agreement is signed. It's called fractional reserve banking. The council might have £100 million in cash sterling on deposit this means they can click upto 15 to 20 times that amount in new money to lend out. No tax payers money will be lent out no risk as no existing money was brought to the table and no loss if it's not paid back. Think about it.[/p][/quote]They still have to accept principal risk, I realise this can be indemnified, but on this scale that could only be realistically be done by using a 3rd party bank given the complexity of mortgage regulation. This doesn't appear to be the case. Commercial loans are a possiblity but they don't seem to be offered in this article and would lead to potential conflicts of interest as a council. MattGillett
  • Score: 0

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