MSE News: Budget 2013: Help to Buy mortgage scheme to launch

redonion

Thrugelmir wrote: »

Wait for the full proposal before judging.

Much might happen in the intervening period as well.

I hear you, but: Any guesses / predictions?

Thrugelmir

redonion wrote: »

But I probably just don't understand the economics: certainly I don't understand why LTV - as opposed to absolute debt value - seems generally to be thought to be a good parameter to describe lender risk.

Equity gives a lender the security that the debt will be repaid in the event of default.

So the level of the debt itself is of no consequence.

That's a simplistic view. At the other extreme LloydsHBOS has some £285 billion of mortgage debt. So the whole asset book is risk profiled by type of borrower, type of property, postcode area, how many units in same building and so on.

Thrugelmir

redonion wrote: »

I hear you, but: Any guesses / predictions?

Believe already published but haven't read them yet.

redpin_2

redonion wrote: »

It's almost as if we need to build more if we want houses to be more affordable, isn't it?



I'm an FTB who is distinctly discouraged by these announcements: this is only going to make it less likely that I'll manage to buy a place soon, and more likely that if I do I'll end up with higher mortgage debt, spending less. That's good for the economy how, exactly??

Edit: I'm talking mostly about the deposit backing, not the new-build thing. New build = good, though I wonder if this is the best way to encourage it.

Yeah I guess your right, as a Ftb'er unless they let me add a interest free loan to what I've saved then its possibly not going to benefit me. I assume everyone who's renting, will be able to buy anything that's considered affordable right now. Still, initially It will help the majority more than the minority, but anything that pushes prices up isn't good for any Ftb'er

NPowerUser

Only just over 2 years to re-inflate the housing bubble (7th May 2015).

The last roll of the dice in the feel good stakes before the Lib/Lab coalition?

redpin_2

sorry may have been answered, but where does it suggest about it being available to all homes in jan??

KTF

redonion wrote: »

The knowledge that the "help" is coming at the end of the year will encourage some sellers not to put their place on the market until then, in the expectation that prices will rise. That means some FTBs may not be able to find a suitable place to buy before the end of the year.

But if this deal is for new build only then existing home owners have nothing to gain.

saayinla

KTF wrote: »

But if this deal is for new build only then existing home owners have nothing to gain.

The First Part of the scheme which kicks off in April 2013 applies only to New Build however the mortgage guarantee scheme starts Next Jan and it applies to both New and Old builds

leereni

Found a good overall description of new help to buy scheme here:

http://www.barratthomes.co.uk/Offers/Help-to-Buy/

teabythesea

Does anyone know where I could go to chat about this with someone? I'm 23 and we were never taught anything about mortgages at school. I have a 5-10% deposit, but a lot of this doesn't make sense no matter how many times I read. Please don't have a go at me or call me stupid, I genuinely need some guidance.