Budget 2013 live....

antonic

I`m one of them.

Been renting for the last 10 years and have ZERO interest in buying a property.

Half of the increase I will get next month , when my tax allowance increases, will be swallowed by the increase in the contributions I pay to my PCPS pension (which I do agree with).

ILW wrote: »

Probably just means that the public sector won't be buying houses.

Carl31

Graham_Devon wrote: »

After listening to various views on the radio, my initial "oh my god this will push house prices up" has been dampened a little.

It might help them stay where they are, like all the other previous schemes before that, but it's unlikley to push them up in any real surge.

Why? People are still grappling with the cost of living. The public sector is still on an 1% wage rise cap. People are still losing jobs (but more importantly, having to choose part time instead of full time).

There simply isn't the money (nor confidence) to push prices up that much.

Plus people still can't get interest only loans, so they still have the problem of paying the full repayment amount each month as one commentator pointed out when few were relating it to sub prime.

Quite

Are we not forgetting that just days ago it was announced that unemployment has risen? This economy is far from back on its feet and ramping up house prices is not going to help anyone, more money in bricks is less liquidity in general. You cant pay wages with bricks

Also, this announcement is obviously a response to the knowledge that people are struggling to provide for themselves, hence need help

Would people need help if things were fine?

Turnbull2000

Don't wish to blow my own trumpet, but I also predicted developer house shares would be a massive beneficiary of the budget :T

Graham_Devon

Turnbull2000 wrote: »

Don't wish to blow my own trumpet, but I also predicted developer house shares would be a massive beneficiary of the budget :T

We all knew something on housing was coming. We've been discussing it for the past couple of weeks.

No one suggested anything this big.

Thrugelmir

Graham_Devon wrote: »

After listening to various views on the radio, my initial "oh my god this will push house prices up" has been dampened a little.

If you understand why the Chancellor announced this measure. Then you'll know its more of a cushion than a balloon to the property market in the years ahead.

As for those getting excited. The current tough lending criteria will remain in place. So by no means a give away.

Graham_Devon

Just noticed theres quite a sting in the tail of the new "Help to buy" scheme.

The 20% loan is interest free for five years. However, after that...

In year six, it will attract a fee of 1.75%

This fee is yearly, so an amount will be added for every year that passes. However...

In year 7 the fee jumps, and turns into RPI + 1%.

So, lets say your new build is 180k. You get a £36,000 loan.

By year six, that loan has attracted £630, making it £36,630.

But year 7 comes along, and lets say RPI is at 4%, hardly unreasonable looking at charts over the last decade.

This will add £1,831 to the loan.

Year 8 and the same figures....another £1,923 added.

By year 8 your loan is now £40,384

This is on a newbuild property, so you were in a good 10% instant negative equity straight away.

You'd better hope prices rise....and if they do, the government will want half of the rise on the 20% loan aswell as the interest outlined above.

Ouch. We've had many people stuck with interest only loans. What happens if they get stuck with this? By year 15, that annual fee will be growing rapidly, especially if inflation takes hold. Many won't be able to pay the mortgage down as quick as the loan is rising. "Help" indeed.

BobQ

ILW wrote: »

Why should anything be equalised. Just go and work for the higher paying department or leave.

My friend works in a Government building shared by three Government departments and people are always leaving one that does not have progression pay for the two that do.

grizzly1911

Graham_Devon wrote: »

Just noticed theres quite a sting in the tail of the new "Help to buy" scheme.

The 20% loan is interest free for five years. However, after that...

In year six, it will attract a fee of 1.75%

This fee is yearly, so an amount will be added for every year that passes. However...

In year 7 the fee jumps, and turns into RPI + 1%.

So, lets say your new build is 180k. You get a £36,000 loan.

By year six, that loan has attracted £630, making it £36,630.

But year 7 comes along, and lets say RPI is at 4%, hardly unreasonable looking at charts over the last decade.

This will add £1,831 to the loan.

Year 8 and the same figures....another £1,923 added.

By year 8 your loan is now £40,384

This is on a newbuild property, so you were in a good 10% instant negative equity straight away.

You'd better hope prices rise....and if they do, the government will want half of the rise on the 20% loan aswell as the interest outlined above.

Ouch. We've had many people stuck with interest only loans. What happens if they get stuck with this? By year 15, that annual fee will be growing rapidly, especially if inflation takes hold. Many won't be able to pay the mortgage down as quick as the loan is rising. "Help" indeed.

Could you simply re mortgage at the end of year 5 when things have improved and your position is so much stronger, we have another government, interest rates start rising etc?;)

Graham_Devon

grizzly1911 wrote: »

Could you simply re mortgage at the end of year 5 when things have improved and your position is so much stronger, we have another government, interest rates start rising etc?;)

Like interest only and how they all just remortgage!?

ukcarper

Graham_Devon wrote: »

Like interest only and how they all just remortgage!?

Can't you start paying loan down straight away. I beleive you have to put 5% in yourself so it's like having a 95% mortgage with 20% of that interest free.