We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

MSE News: Funding for Lending scheme scrapped for homebuyers

Former_MSE_Darryl
Former_MSE_Darryl Posts: 210 Forumite
in House buying, renting & selling
"A Government scheme to boost mortgage lending for homebuyers has been scrapped now house prices are rising..."
Read the full story:

Funding for Lending scheme scrapped for homebuyers

OfficialStamp.gif

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.
«13

Comments

  • zennith
    zennith Posts: 12,193 Forumite
    The Tories were warned that there Big Idea would effect the Housing Market.... ''Oh No It Wont'' said Gideon Osborne..... AHEM!!
  • FLAPJACK
    FLAPJACK Posts: 524 Forumite
    I wonder if the banks will now use their capital reserves to fund future lending, or will they try to tempt savers now with better returns despite the BofE saying rates will not rise until unemployment reduces?.

    I would think that the mortgages given under Funding for Lending will be safe from rate rises as a lot of them are fixed.

    Another reason savers may be looked at to provide funds.
  • Lizzy86
    Lizzy86 Posts: 1 Newbie
    Hi, I'm new to this site but just wondered whether anybody could answer a quick question as I'm so confused with all these government schemes!

    My partner and I are in the process of buying a house and have a 95% mortgage offer from Natwest. Will the scrapping of this scheme effect us in any way?

    Thanks in advance.
  • Pincher
    Pincher Posts: 6,552 Forumite
    1,000 Posts Combo Breaker
    Put on your seat belts, folks, here we go again.

    How many times is it now,

    1984 - 1988
    1995 - 2000
    2004 - 2007
    2013 - 2018?

    Up and down, up and down.
  • jk0
    jk0 Posts: 3,479 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    'The end to rock bottom mortgage rates'?

    Let's hope it's the end to rock bottom savings rates also. I won't hold my breath though.
  • brit1234
    brit1234 Posts: 5,385 Forumite
    Lizzy86 wrote: »
    Hi, I'm new to this site but just wondered whether anybody could answer a quick question as I'm so confused with all these government schemes!

    My partner and I are in the process of buying a house and have a 95% mortgage offer from Natwest. Will the scrapping of this scheme effect us in any way?

    Thanks in advance.

    Higher mortgage rates and possible negative equity.
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
  • Lummoxley
    Lummoxley Posts: 215 Forumite
    Part of the Furniture 100 Posts Name Dropper
    I'm ready to be shot down in flames but I think it's shutting the barn door whilst the horse is halfway through. I think it will help dampen rises nationally, which to my mind is good. But London and surrounding areas property will continue to ramp up excessively for a while yet. This of course is only my take on it. I already think London prices, as a born and bred Londoner, are obscene.
  • LadyDee
    LadyDee Posts: 4,293 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Lizzy86 wrote: »
    Hi, I'm new to this site but just wondered whether anybody could answer a quick question as I'm so confused with all these government schemes!

    My partner and I are in the process of buying a house and have a 95% mortgage offer from Natwest. Will the scrapping of this scheme effect us in any way?

    Thanks in advance.

    In your position I would ask the bank. Only they will know whether it will affect your offer.
  • faeryty
    faeryty Posts: 19 Forumite
    Lizzy86 wrote: »
    Hi, I'm new to this site but just wondered whether anybody could answer a quick question as I'm so confused with all these government schemes!

    My partner and I are in the process of buying a house and have a 95% mortgage offer from Natwest. Will the scrapping of this scheme effect us in any way?

    Thanks in advance.

    The scheme that has been scrapped is distinct from the help to buy scheme, so on the face of it this change hopefully shouldn't affect you too much at this stage (or me- I currently have an agreement in principle from RBS for a help to buy mortgage) but there could well be some movement in interest rates on those deals on the back of this. I guess it also depends atwhat stage in the buying process you are- it could even potentially help as ammunition on negotatiations for price if the vendor worries that this will hamper their efforts to sell.

    Basically as with anything to do with the economy, it's all just educated guesswork anyway.
  • AndyGuil
    AndyGuil Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Lummoxley wrote: »
    I'm ready to be shot down in flames but I think it's shutting the barn door whilst the horse is halfway through. I think it will help dampen rises nationally, which to my mind is good. But London and surrounding areas property will continue to ramp up excessively for a while yet. This of course is only my take on it. I already think London prices, as a born and bred Londoner, are obscene.
    A lot of London purchases are cash anyway so they are immune to interest rates changes. With HTB this will build some momentum in the bottom end of the market.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.8K Banking & Borrowing
  • 253.8K Reduce Debt & Boost Income
  • 454.6K Spending & Discounts
  • 245.9K Work, Benefits & Business
  • 601.9K Mortgages, Homes & Bills
  • 177.7K Life & Family
  • 259.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture