Is Boris's 95% mortgage idea a wise move?

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 10 October 2020

⏱️ 52 minutes

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Summary

The cornerstone of the Prime Minister's Conservative Party speech this week was turning Generation Rent into Generation Buy with state-backed 95% mortgages.

The idea is that this will help first-time buyers frozen out by the need for big deposits - and combining it with long-term fixed rates will reduce risk?

But is this a good idea or a bad plan?

Is more help just what first-time buyers could do with, or is inflating the property market with more cheap money the last thing we need?

On this week's podcast, Simon Lambert, Georgie Frost and George Nixon talk mortgage plans and house prices.

Plus GDP is still rising but not as strongly, so is the V shaped recovery off and what will further lockdown measures do to it?

And what are the charts that tell the real story of the coronavirus economy?

Transcript

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0:00.0	Welcome to the This Is Money podcast brought to you in partnership with Charles Stanley Direct, the award-winning investment platform trusted by over 40,000 clients. Investment involves risk.
0:10.7	I'm Georgie Frost and alongside me and editor Simon Lambert today is reporter George Nixon.
0:15.5	And coming up, Boris's state-backed 95% mortgage plan to turn generation rent into generation buy.
0:23.6	A good idea or exactly what we don't need.
0:27.1	Talking of my favourite subject, house prices have boomed in lockdown.
0:30.5	So is Britain's property market like Wiley Coyote or a cockroach that will survive anything.
0:36.7	Meanwhile, the corona economy, it's growing, but not by as much as hoped.
0:41.1	But there is more to the economy than GDP figures.
0:44.1	So we take a look under the bonnet also today.
0:46.8	What to do if you're an expat who's been told your account will be shut due to Brexit?
0:51.3	And why are this money readers so interested in the Clana Xbox saga?
0:56.0	Are they all secret shopaholic gamers? And don't forgeting stuff to date. With all the latest
1:00.5	breaking money news, just go to this ismoney.co.com. Or download the app. But first, a grand plan by
1:07.6	Boris Johnson to turn generation rent into generation buy or yet more tinkering in
1:13.9	the housing market. That makes no difference the best and could actually make things worse.
1:17.7	We heard exactly this before David Cameron using those very words five years ago.
1:22.9	But the PM this time round wants to achieve his aim by boosting the availability of long-term mortgages for home buyers with a small deposit.
1:30.4	He said up to 2 million people who could afford repayments cannot currently get home loans.
1:36.9	All about deposits.
1:38.2	Okay.
1:38.9	Simon, what is the plan, first of and foremost, before we get into what we think of it?
1:43.2	Well, we asked the department of
	...

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