Newbuy scam scheme in turmoil

HAMISH_MCTAVISH

Graham_Devon wrote: »

Ouch... You are getting bitter these days Hamish!

Here's a scheme that adds to supply, doesn't fund existing properties, and if anything reduces demand for existing houses. So I have precisely zero in the way of vested interest here.

However everyone should be quite frankly appalled at the fact banks are at every turn sabotaging efforts to get enough houses built for our growing population through shameless profiteering at the expense of wider society.

DervProf

HAMISH_MCTAVISH wrote: »

However everyone should be quite frankly appalled at the fact banks are at every turn sabotaging efforts to get enough houses built for our growing population through shameless profiteering at the expense of wider society.

I was, quite frankly, appalled at the fact that the banks behaviour pre - 2007. Their behaviour now is simply a consequence of how they behaved a few years ago. The problem now is that unless house prices fall, there will be more and more demand from people like yourself for a return to previous lending practices.

Graham_Devon

HAMISH_MCTAVISH wrote: »

Here's a scheme that adds to supply, doesn't fund existing properties, and if anything reduces demand for existing houses. So I have precisely zero in the way of vested interest here.

However everyone should be quite frankly appalled at the fact banks are at every turn sabotaging efforts to get enough houses built for our growing population through shameless profiteering at the expense of wider society.

Sabotaging efforts?! It's all the banks fault? (again). LOL.

Just what happened to your free market lectures Hamish!?

HAMISH_MCTAVISH

Graham_Devon wrote: »

Just what happened to your free market lectures Hamish!?

What free market?

Just 6 lenders control around 90% of UK lending.

That's not a free market, that's a cartel.

Graham_Devon

HAMISH_MCTAVISH wrote: »

What free market?

Just 6 lenders control around 90% of UK lending.

That's not a free market, that's a cartel.

Cry me a river.

I'm sure your chomping at the bit to have a pop at the builder "cartels". Feel free....

the_flying_pig

HAMISH_MCTAVISH wrote: »

What free market?

Just 6 lenders control around 90% of UK lending.

That's not a free market, that's a cartel.

as i've said before, thank your mega-lending heroes at Northern Rock & Halifax for that.

verydeeppockets

The banks know damn well that overblown newbuilds hit negative equity a lot quicker than tried and tested older stuff.
Builder builds rabbit hutch. Builder thinks of a number. Bank disagrees. So Bank will lend, but at a higher rate. More risk.
And as above, those likely to try to use the scheme are potentially first in line to default. As they can't buy without help. So as before - higher risk.
Rates then are unaffordable to those who can't afford to buy a house on their own. Duh. Unless the banks decide to re-introduce the 'ol 120% deal to help people get on the bottom rung of the gallows, sorry, housing market.
So it will fairly obviously fail. Sorry Dave.

brit1234

First client signs NewBuy deal

Housing minister Grant Shapps has expressed "delight" as the first client signed in to the Government’s NewBuy scheme.

A client of house builder Bovis Homes from Cambridgeshire has purchased a two-bedroom apartment with lender Nationwide, becoming the first to take advantage of the new 95% mortgages scheme.

http://www.24dash.com/news/housing/2012-04-23-First-client-signs-NewBuy-deal

Here is what they have gone for.

2 bedroom flat for sale £114,995

The Zerzura 2B at Oasis, Braymere Road, Hampton Hargate Peterborough Cambridgeshire PE7 8GT


13 March 2012

• Status changed: New Buy, New home, Premium New Home New home

12 March 2012

• Status changed: New home, Premium Display New Homes New Home

02 February 2012

• Initial entry found.

http://www.rightmove.co.uk/property-for-sale/new-homes/property-21741801.html?premiumA=true

There are lots of bigger and cheaper 2 bed flats in the area. The dimensions are not shown, no floor plan. Every picture is taken in the corner to make the tiny rooms look a little bigger complete with the tiny furniture. Are they too embarrassed to show these Newbuy dimensions?




FIGURES
Cost £115,000
Deposit £5,750 (5%)
Mortgage needed £109,250
Mortgage rate 6.19% (3 year fix)
Monthly mortgage payments £717

All I can say is these people are complete suckers and financially illiterate. Clearly going to be in massive negative equity.

FTBFun

brit1234 wrote: »

For a 1 bed London Newbuy Property (£250k) you are talking about £1600 a month mortgage.

The high property cost, low deposit and reasonably high interest rate makes the scheme crippling. This is before interest rates go up.

And it has to be £250k does it?

http://www.rightmove.co.uk/property-for-sale/new-homes/property-37082285.html

http://www.rightmove.co.uk/property-for-sale/new-homes/property-20269491.html

http://www.rightmove.co.uk/property-for-sale/new-homes/property-37108577.html

And many others.

Thank christ you haven't resorted to lies to try and make your point, eh?

brit1234

FTBFun wrote: »

And it has to be £250k does it?

http://www.rightmove.co.uk/property-for-sale/new-homes/property-37082285.html

http://www.rightmove.co.uk/property-for-sale/new-homes/property-20269491.html

http://www.rightmove.co.uk/property-for-sale/new-homes/property-37108577.html

And many others.

Thank christ you haven't resorted to lies to try and make your point, eh?

No, I think it is you who have resorted to lies. You have given 3 examples of shared ownership schemes and not Newbuy. Of the 3 shared ownership examples they do not show the full costs just 25-35% of the value.

Not like for like, shame on you.