The Debt Time-Bomb in a 'Bargain' Home ; Developers Peddling Shared Equity May Force Homeowners to Sell Up After Ten Years

Summary

---

HOW about owning 100 per cent of your home for 75 per cent of the cost? It sounds too good to be true, but these are the sort of offers being advertised by developers - big and small - up and down the country. They have huge appeal, especially to young people who would otherwise find it hard to buy.

Unfortunately, these schemes are not quite what they seem. Lenders, mortgage brokers, housing associations and others are all urging extreme caution, warning purchasers that these deals could store up massive problems for the future. Buyers should consider alternative routes to ownership, they say.

See the full content of this document

Extract

---

The Debt Time-Bomb in a 'Bargain' Home ; Developers Peddling Shared Equity May Force Homeowners to Sell Up After Ten Years

The reason for the offers is that homebuilders are in desperate trouble, with some verging on bankruptcy, and others slashing prices and cutting staff.

Persimmon, the nation's biggest homebuilder, last week said profits had plunged by more than 60 per cent over the past year while the ...

See the full content of this document

---