NewBuy Guarantee Scheme

Graham_Devon

ader42 wrote: »

To be honest it depends if the person wants to buy a new build or not.
If you want to buy a new build for less this is a bad thing as it will improve demand. If however you want to buy a pre-owned home for less this is very good news as it will reduce demand for what you want to buy.

It's bad news for all of us.

We, the taxpayer, are exposing ourselves to any market falls, en masse.

We simply won't be able to support banks, business, benefits AND cover banks losses on housing.

What next? We have cases where we are paying SMI to mortgagees, for a mortgage we are guarantors on? So we pay for the mortgage interest for a while, only to find out they lose the house, and then we pay any losses the banks have made?!

I'm surprised these things just get through without even being mentioned on the news. For every buyer under this scheme, it's another large liability for the taxpayer.

We slam bankers for what they did, and then the government exposes us all to these sorts of liabilities on top of all the other current liabilities we face.

If labour want to really have a go at the opposition, they should be looking at these sorts of things, telling the nation how we are for all purposes and intent, socialising the losses here and handing any profits to the banks. I'm not sure that would go down too well with the nation considering the furore over bonuses.

We've just capped benefits, which will force people to move, to save maybe 10k for one family, and then open ourselves up to untold losses on one house. Were liable right from the very start considering these people will be in negative equity from the word go.

The_White_Horse

round my way, a new building (flats) was refused permission due to no provision for "houses for scum". they have appealled, saying that there will be no profit at all if they have to build flats for scum bags. the appeall has been upheld. at last, we are beginning to break free of this labour hold that people can't do anything without paying the chav piper first.

rotoguys

A straight forward question that will affect many 1,000's of current tenants and those hoping to buy in the future.

Having not read all of blurb - got bored - Are mortgages (95%) going to be easy to get?

Are those only with a squeaky clean credit rating going to be allowed to borrow?

What about those who have a poor credit rating, about those that are on low income (NMW) about those that are on a fixed benefit income due to sickness/disability or unemployment?

From what I can see, it will only be available to those who can already get a mortgage, but can't find a home at a reasonable price. They wil be £££££'s in pocket as they will only need to put down 5% instead of the 25-40% required at the moment.

What about those that can never see a way out of renting that have current debts that reduce their ability to borrow any more.

The rich get richer and the rest of the poor sods (the unemployed/sick/disabled) will have to look forward to a future of renting and possibly having to move every 6 months!

FTBFun

rotoguys wrote: »

What about those who have a poor credit rating, about those that are on low income (NMW) about those that are on a fixed benefit income due to sickness/disability or unemployment?

If you think anyone on benefits or NMW is ever going to be in a position to buy their own property (except perhaps RTB) you're living in a dream world.

Pimperne1

The_White_Horse wrote: »

round my way, a new building (flats) was refused permission due to no provision for "houses for scum". they have appealled, saying that there will be no profit at all if they have to build flats for scum bags. the appeall has been upheld. at last, we are beginning to break free of this labour hold that people can't do anything without paying the chav piper first.

I do hope that is the case. So many times I have been put off buying by the fact that I will be putting down a large chunk of cash for a place for me or my good tenants to live in and right next door (if the Housing Association are not too particular) I might end up with some crack head or girl whose just decided to get herself pregnant so that she doesn't have to continue living with her (no doubt) single mum. Profuse apologies to all female (and male) readers on the site who are involuntarily (or voluntarily) separated (or divorced) and who have (or don't have) custody of their children (or child). This is aimed at the socially irresponsible who elect to have children who have no means at all of maintaining them. Its just too easy to offend people nowadays.

chewmylegoff

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!

aren't you pretending that your mr ree character is in his 70s? how come he knows all of these first time buyers? you should try to post consistently with your back story.

Lizling

As someone hoping to be a FTB next year, I don't give a toss about these schemes. If I only put down a 5% deposit, I'd need to borrow about 6 times my salary for the mortgage on a small flat. That's not going to happen, so I'll carry on saving towards my 20-25% deposit tyvm.

worldtraveller

Up to 100,000 people will get Government support to buy homes worth up to £500,000 in a Coalition move to revive the middle-class dream of home ownership, ministers will announce.

David Cameron will today formally open the NewBuy Guarantee scheme, where the Government guarantees part of a homebuyer’s mortgage, allowing them to take out much larger loans than they might otherwise be eligible for.

The guarantee will allow people buying new-build properties to borrow up to 95 per cent of the value of their new home.

Since the credit crisis that began in 2007, most people seeking to buy a newly-built property have been able to borrow no more than 80 per cent of the sale price.

Telegraph

brit1234

Newbuy is a con designed to assist the builders not the public. It sells new builds in a falling market at an inflated price with just a 5% deposit. You will be put in instant negative equity and trapped from in the future steps up the ladder.

This scheme is designed to focus on gullible or desperate people who don't realise the consequences. To make it worse the tax payer is exposed to the debts if the properties are repossessed.

poppy10_2

This scheme looks to have been an epic flop.

The number of builders participating has dropped from 25 when the scheme was first announced to just 7 on launch day today. Meanwhile the number of lenders involved has dropped from 7 to 3, and none of those 3 lenders has actually published any details of the 95% mortgage deals they are planning to offer. The likelihood is that the interest rates will be equivalent or even higher than the current 95% LTV deals available on the open market.

This is a non-event, it's not going to do anything significant towards achieving the government's aim of propping up failing housebuilders and keeping house prices high,