Budget 2011: First time buyers to get help buying new builds

tyler80

Compare and contrast - 4 bed 'townhouses'
http://www.rightmove.co.uk/property-for-sale/new-homes/property-27313798.html Shared Ownership £173,950

http://www.rightmove.co.uk/property-for-sale/property-16741341.html?premiumA=true Open Market £130,000

http://www.rightmove.co.uk/property-for-sale/property-32501129.html Open Market £154,995

regbrown

it is kinda nuts that the banks deems FTB are higher risk, so their solution? charge us a good % more on the loan and increase the chance of us defaulting! a bit tongue in cheek as sensible lending is important etc etc

dont they also miss the obvious point, banks dont give the same rates on shared equity mortgages... so you cant take advantage of the going rate. of course it has been 6 months since I looked at HBD but back then there were a handful of places offering 2 year fixes with 4.6% the lowest I could find.

with shared ownership we were looking at 6% plus so was staggeringly worrying what it could go upto considering the base rate was .5%

our options now are either to move away from this area which means being away from family when we hope to raise some kids or the other more realistic option of us going back to our parents for 6 months to try and save up as much as possible then hope the % hasn't gone up too much so that we can still afford it!

WelshGandalf

regbrown wrote: »

it is kinda nuts that the banks deems FTB are higher risk, so their solution? charge us a good % more on the loan and increase the chance of us defaulting! a bit tongue in cheek as sensible lending is important etc etc

It's not that FTB's are higher risk, it's the percentage of the property that you are borrowing money from that is the risk. People who bought their house 10-15 years ago will normally have a big deposit thanks to the increase in the value f their home - people who bought last year or FTB's don't have that.

our options now are either to move away from this area which means being away from family when we hope to raise some kids or the other more realistic option of us going back to our parents for 6 months to try and save up as much as possible then hope the % hasn't gone up too much so that we can still afford it!

Yup, it sucks. Current bank policy is not the problem though, they are lending sensibly now - if they had been lending sensibly pre-2008 then we wouldn't be in this ridiculous situation! I am in a similar situation. Best of luck in doing what is right for you, just don't over-stretch yourself for a dream as that can turn it into a nightmare further down the line.

regbrown

cheers, same for you! nope will not over stretch at all as the point is we want to have kids soonish so we would only mortgage based on the one wage to be safe.

seems that the lack of properties may be an issue as well, none been added to my area for a good few weeks and a couple have either sold or been taken off the market. wouldn't surprise if we get micro climates with waves of pricing dictated on current supply and demand in the set area.

frustrating that new builds are going up in and around but a 2 bed for £225k, yeah thanks so much....

LondonGuy_2

I think there might be a mistake somewhere.

I read on the BBC website that the loan is for up to 80% of the DEPOSIT, NOT 20% of the value of the property as this article says.

Which article is correct?

LondonGuy_2

Does anyone know if this loan will apply to the part own part rent scheme?

sugababy

LondonGuy wrote: »

Does anyone know if this loan will apply to the part own part rent scheme?

Does any one knows if this works for people with poor credit ratings, I pay all my bills DD anyway but can't say I have always been a saint at paying by debts in a timely manner. Not a deliberate act but it happens even to the best of us.