The BOMAD Mortgage

[Noallegiance]

.......... No........ Seriously.......

https://www.dailymail.co.uk/news/article-6638369/amp/Lloyds-Bank-launches-mortgage-mum-dad-help-young-people-homeowners.html?ico=amp_moreTopStories

[One percent]

Desperate. I was looking at flats on rightmove here in londonistan and they are not selling. On the market for months. I’m guessing that the only way is down and this is a last gasp money grab attempt 

[kibuc]

I'm 100% behind the idea, as long as were not the ones bailing Lloyd's and their feckless borrowers out in 3 years' time. 

[georgist]

3 hours ago, kibuc said:

I'm 100% behind the idea, as long as were not the ones bailing Lloyd's and their feckless borrowers out in 3 years' time. 

You will be, by proxy. The additional credit supplied will push up prices further, forcing others to bid against them and themselves taking on more debt than would occur without this product.

[MrXxx]

Really not going to make much difference. Those who have `tapped` BOMAD have done it already, those BOMAD who have the money but don't trust their offspring are hardly likely to sign a contract that makes their savings liable in the case of default, and those BOMAD who would have used current equity in home can see (from the current surge in media articles) that house prices are only going in one direction for the short/mid term, so are unlikely to put their own home at risk.

[UnconventionalWisdom]

20 minutes ago, MrXxx said:

Really not going to make much difference. Those who have `tapped` BOMAD have done it already, those BOMAD who have the money but don't trust their offspring are hardly likely to sign a contract that makes their savings liable in the case of default, and those BOMAD who would have used current equity in home can see (from the current surge in media articles) that house prices are only going in one direction for the short/mid term, so are unlikely to put their own home at risk.

Yep, i don't really see how this is much different to just giving the kids the money. You still need to have the savings. 

Last ditch attempt