NewBuy Guarantee Scheme

Pimperne1

Shapps also announced the details of the NewBuy Guarantee Scheme, the government’s new build mortgage indemnity scheme.

The scheme has a March 2012 launch date and it will now be accessible to the wider home-buying population and not just limited to first-time buyers.

Under the scheme, a home buyer will be able to borrow at 95% loan to value in order to get them into a new-build property. It will be available to UK citizens for new build houses and flats up to £500,000.

They don't like this over on HPC so it must be good news.


http://www.mortgageintroducer.com/mortgages/242413/5/Industry_in_depth/Shapps:_MIG_and_housing_strategy_on_track.htm

HAMISH_MCTAVISH

Pimperne1 wrote: »

They don't like this over on HPC so it must be good news.

That's usually the case.....

Graham_Devon

This is just yet another scheme, with yet another title.

It's yet again aimed only at new builds.

Look at all the other schemes we have so far had. How many have realistically done anything to:
A) Actually "help" people?
Increase turnover of housing?

Answer is, pretty much none, unless someone can advise otherwise.

I'd imagine that builders, having all but stopped FTB homes, are now pressurising the government to offer incentives on the other homes they are now building. I could be wrong, but I can't really see how this scheme is any different to any other scheme they have come up with, bar opening it up to anyone instead of just FTBs. It's OK to suggest a certain forum don't like it, but I'd rather hear peoples views as to why it's a good scheme rather than simply mocking those who have anything else to say about it, while adding nothing constructive themselves.

Another scheme isn't going to solve any problems. Neither is freeing up industrial land for 100,000 house planned for 2015.

In a way I feel sorry for Shapps. He's got to face the press with this nonsense that he doesn't have too much say in. He has to suggest these schemes are good and the next big thing, but in reality, his hands are tied by the rest of the government, builders and banking....all of whom are suggesting they need X Y and Z to build houses.

Graham_Devon

And it's worth remembering, for those who are going to come forward and back this scheme up....

...This is merely socialising the losses, while privatising the gains.

Any losses, the taxpayer will be liable for. Any gains, the banks will take. This goes one step further than the previous schemes, which at least led to some losses falling on the banks.

Theres a reason why we have had so many schemes....none of them work as desired.

MrRee_2

I can state that I know of a good few people taking advantage of this - first time buyers, all of them.

They are buying new places, so no knock on to the housing market.

I cannot help but feel that the Builders are just being able to sell at inflated prices to youngsters dreaming of their own home - and this is being funded by taxpayers!

Pimperne1

Graham_Devon wrote: »

This is just yet another scheme, with yet another title.

It's yet again aimed only at new builds.

Look at all the other schemes we have so far had. How many have realistically done anything to:
A) Actually "help" people?
Increase turnover of housing?

Answer is, pretty much none, unless someone can advise otherwise.

I'd imagine that builders, having all but stopped FTB homes, are now pressurising the government to offer incentives on the other homes they are now building. I could be wrong, but I can't really see how this scheme is any different to any other scheme they have come up with, bar opening it up to anyone instead of just FTBs. It's OK to suggest a certain forum don't like it, but I'd rather hear peoples views as to why it's a good scheme rather than simply mocking those who have anything else to say about it, while adding nothing constructive themselves.

Another scheme isn't going to solve any problems. Neither is freeing up industrial land for 100,000 house planned for 2015.

In a way I feel sorry for Shapps. He's got to face the press with this nonsense that he doesn't have too much say in. He has to suggest these schemes are good and the next big thing, but in reality, his hands are tied by the rest of the government, builders and banking....all of whom are suggesting they need X Y and Z to build houses.

Yes, he thought the same, that's why he said:

Shapps said: “The pattern of the past has been to produce endless policies and initiatives that simply gather dust on Whitehall shelves and lead to inaction and inertia.

“But with the Prime Minister putting housing centre stage on the road to economic recovery, I am determined that we shall not repeat these mistakes of the past.

“That's why I'm pulling out all the stops for those who want to get on the property ladder, so from March the NewBuy Guarantee Scheme will be on hand to help people buying newly built properties with just a fraction of the deposit they would normally need.”

I expect.

Pimperne1

MrRee wrote: »

I can state that I know of a good few people taking advantage of this - first time buyers, all of them.

They are buying new places, so no knock on to the housing market.

I cannot help but feel that the Builders are just being able to sell at inflated prices to youngsters dreaming of their own home - and this is being funded by taxpayers!

Uncharacteristically downbeat of you MrRee. If these young people get onto the market (albeit they may be persuaded to pay a bit more than they should) then they will be rent free for the rest of their lives (probably) - that's surely a price worth paying. I shouldn't be supporting this being a landlord but I am very public spirited.


Edit to say that I have changed my avatar in recognition of Geneer's second year of home ownership which I think happens on 4 Feb.

Graham_Devon

Pimperne1 wrote: »

Yes, he thought the same, that's why he said:



I expect.

These were live incentives and policies.

He is clearly defining policies which never get off the ground in the bit you quoted. I don't even know how you can even get confused over it, as it's patently clear.

Aberdeenangarse

MrRee wrote: »

I can state that I know of a good few people taking advantage of this - first time buyers, all of them.

They are buying new places, so no knock on to the housing market.

I thought nothing was for sale 'down your way'

MrRee wrote: »

All I know is that everything around my way is either SOLD or UNDER OFFER

:rotfl:

ader42

This is good news for builders.

This is bad news for buyers (pay a 5% deposit and immediately you're in 5% negative equity).

This is very bad news for anyone trying to sell their pre-owned house (less demand for theirs).

Pimperne1

Graham_Devon wrote: »

These were live incentives and policies.

He is clearly defining policies which never get off the ground in the bit you quoted. I don't even know how you can even get confused over it, as it's patently clear.

Sorry, I didn't realise that (its probably this bit in the quote that made me think he was talking about the new scheme in some way):

“That's why I'm pulling out all the stops for those who want to get on the property ladder, so from March the NewBuy Guarantee Scheme will be on hand to help people buying newly built properties with just a fraction of the deposit they would normally need.”