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MSE News: Q&A: Help to Buy 95% mortgages launch brought forward by Government
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Former_MSE_Guy
Posts: 1,650 Forumite
"There could be an uplift in the number of mortgages available for borrowers with small deposits as the Government will bring in the second part of its Help to Buy scheme three months early ...."
Read the full story:
Q&A: Help to Buy 95% mortgages launch brought forward by Government
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Q&A: Help to Buy 95% mortgages launch brought forward by Government
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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Comments
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No news at all, and definitely not "the full story" just more re-hashed rumours. After reading this article no one will be any the wiser!
"The first lot of these deals should be available from next week but none of the lenders who have signed up to the scheme so far have released a date." So how can they be available from next week? No doubt the government will browbeat the part owned state banks into making a gesture.0 -
At least they'll know there's no flaming equity loan!
I'm tired of explaining that.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Let_Us_See wrote: »So how can they be available from next week?.
Presumably to start the process of vetting the applicants.
Thought that the funding starts in January.0 -
Let_Us_See wrote: »No news at all, and definitely not "the full story" just more re-hashed rumours. After reading this article no one will be any the wiser!
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Have to agree.
The article is full of inaccuracies and most certainly not up to the usual MSE high standards!“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
95% mortgages. What could possibly go wrong!I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »95% mortgages. What could possibly go wrong!
A 0.9% MIG appears to give some security.0 -
I hope this is in the poll question next week, or something generally about the government intervening to "boost the housing market"...0
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"We're only five years after the huge economic downturn caused primarily by people taking out mortgages they couldn't afford. So it's quite eyebrow raising to see the government encouraging those with smaller deposits to buy properties.
For individuals looking to get these mortgages, the first thing to do is to ensure you genuinely are able to afford the repayments. Don't think renting is a dirty word and that you must get on the housing ladder."
I do get sick and tired of those that harp on about how people shouldn't be allowed a mortgage if they can only save 5%.
Rent these days is generally far more expensive than a mortgage. Therefore a mortgage is often more affordable (if you can get one). Personally, I pay £800 a month rent for a property, when a mortgage on an equivalent property would cost around £550 a month (or less).
Whilst I'm paying that rent, how the hell am I meant to save for a deposit?!
Not a fan of the Tories at all, but this is the one thing they've introduced that will actually help 'normal' people.0 -
Thrugelmir wrote: »Presumably to start the process of vetting the applicants.
Thought that the funding starts in January.
My understanding is that the guarantee does not go in place until January. Therefore no funds released on these mortgages until then.
Applications from next week? One major lender has told us they expect to announce rates next week.
I can see chains failing this quarter if buyers take rates they cannot complete on for 12 weeks.
Madness - once again political expediency takes precedent over the good of the economy.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Not a fan of the Tories at all, but this is the one thing they've introduced that will actually help 'normal' people.
Yes, "normal people" are being given as much rope as they need.
Sorry, but with a 95% LTV mortgage you don't have enough buffer, so it's very easy to get into negative equity. If you then find yourself unable to keep up with payments (maybe out of work or if/when interest rates go up to 2x/3x/4x their current level) then you stand to lose everything and more.
I know it seems harsh but "easy money" doesn't do *anyone* any good in the long run.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0
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