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MSE News: Government reveals more details of Help To Buy guarantee scheme
Former_MSE_Helen
Posts: 2,382 Forumite
"The Government today insisted only credit-worthy borrowers will be able to buy homes under its new Help to Buy scheme..."
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Government reveals more details of Help To Buy guarantee scheme
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Government reveals more details of Help To Buy guarantee scheme
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
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Racking up future debt. Great idea """"0
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Is this available for remortgages?0
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Is this available for remortgages?
No.
It's a shameless program to keep house prices overinflated by encouraging sub prime lending putting tax payers money at risk.
Any one would think there is an election coming in 2 years.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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To some people it will be a good scheme. Even with paying a premium on the new builds, if you have only 5% deposit you will get much better rates than buying an older property with bigger deposit.
House prices will always be overinflated, dont kid yourself in thinking they will drop...0 -
Tony_MechEng wrote: »To some people it will be a good scheme. Even with paying a premium on the new builds, if you have only 5% deposit you will get much better rates than buying an older property with bigger deposit.House prices will always be overinflated, dont kid yourself in thinking they
will drop...
Really?, so can you explain why in the recession of the early 90,s house prices outside London fell through the floor.Interest rates rose to 15% in the past and keys were being handed back to the banks hand over fist.. Don't kid yourself house prices will always be overinflated.
Truth is until stupid people wake up and realise house prices need to be in line with earnings then they won't fall to an affordable level. We need a massive house building programme to build cheap,affordable houses.The house builders won't flood the market as the current situation suits them just fine with nice high profit margins and sitting on huge landbanks..
Why should I as a taxpayer subsidise someones house owning asperations when in truth most can't afford one.
When the Condems run out of ideas on how to prop up the housing market what do you think will happen?......sh*t will hit the fan big time.0 -
Never again, Learn our lesson, hahaha.
I talked to a twenty something woman, and she doesn't even know who Simon and Garfunkel were.
There are 21 year old graduates who probably don't remember the subprime crisis, because they were 15 years old. Subprime probably means skanky women whom you don't want to pick up on Friday nights to them.
Idiots want to borrow at 95%, and lenders want to lend to them at 8% high risk rate, because they have worked out you lose a few, but the overall return is still good. Is there a bigger word than idiot: try Braindead Moron. Only a BM government would step in and guarantee the loan and promise to pay the blood sucking lender, who is getting the high risk rate of return, WITHOUT THE RISK.0 -
Disagree. If you don't want 'debt' don't buy a house. You are buying an asset, not taking on debt. All this is allowing you do is get a better rate of funding on that asset. I will most definitely be partaking!
You contradicted yourself in the first sentance....
Lol, you are joking........Any asset can and does rise/fall in value and if you owe more than the asset is worth at any one time thats a debt my friend, anything you buy with borrowed money is debt.........You need to read some books on economics before you buy a house.......;)
PS : Look at the Gold market.Are you telling me that if you buy a Gold sovereign it will always rise in value?........
If you do partake I hope you have a plan to repay the 20% government funded contribution other than HPI (Thats House Price Inflation by the way)..0 -
Thank you for the advice but I work in the industry and know what I'm talking about. I'm not saying the asset can't fluctuate in value. But for me it is about opportunity cost. If I am to be lent 15% of the value for 5 years at 0% (which I already have) and I can invest it @ > loan interest rate (+ / - the fall....or rise in asset value) it is profitable. For me, being in the investment industry, I have full faith in being able to do that, hence I find it a good thing. I am not saying it is good for everyone.....but what I was saying is that making a comment about just viewing it as taking on debt is inaccurate. It is 'debt' that you NEED to take on to buy a house. It is only making it CHEAPER debt. But of course, if you have a particularly pessimistic view on the housing market, don't do it!0
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