The mortgage guarantee scheme

brit1234

There are so many people jumping on the band wagon with out looking at the future consequences.

Firstly on the shared equity property you will have to pay the equity loan (20% on inflated price newbuild) and interest with mortgage after 5 years. The equity loan interest rate increases each year.

Secondly on your accidentally rented property you will eventually pushed onto a higher cost buy to let product if you have the 30% equity, if not your lender may force you to sell.

Combined it is a recipe for disaster especially if our credit rating gets downgraded forcing up mortgage rates.

deano3

brit1234 wrote: »

There are so many people jumping on the band wagon with out looking at the future consequences.

Firstly on the shared equity property you will have to pay the equity loan (20% on inflated price newbuild) and interest with mortgage after 5 years. The equity loan interest rate increases each year.

Secondly on your accidentally rented property you will eventually pushed onto a higher cost buy to let product if you have the 30% equity, if not your lender may force you to sell.

Combined it is a recipe for disaster especially if our credit rating gets downgraded forcing up mortgage rates.

If you read my post again you will see i am discussing the mortgage guarantee scheme, not help to buy which is for new builds only.

matt1234

I have written to my (very prominent) MP voicing my disgust at the fact these schemes are available to non first time buyers and have received a promising reply.

Don't sit back and see billions of tax payers money being used to underwrite the mortgage market and line the pocket of parasitic landlords. Email your MP demanding exclusions to be put in, something WILL get done. It will only take 5mins of your time.

deano3

matt1234 wrote: »

I have written to my (very prominent) MP voicing my disgust at the fact these schemes are available to non first time buyers and have received a promising reply.

Don't sit back and see billions of tax payers money being used to underwrite the mortgage market and line the pocket of parasitic landlords. Email your MP demanding exclusions to be put in, something WILL get done. It will only take 5mins of your time.

The entire reason for the scheme is to assist not just first time buyers but people who dont have large deposit's, and want to move up the ladder. You may see small alterations to the scheme but im sure it wont be a complete U- turn which is what your suggesting.

TeamLowe

It was on the Today programme this morning that Ed Balls was questioning the business secretary about specifically BTL and second homes.
A published treasury document states that the schemes can't be used for BTLs (how controlled i don't know) but there's nothing about second homes.
Labour are saying it's going to help millionaires get second homes and isn't right and the business secretary was saying that the detail had not been finalised.
so presumably, as with most things with this goverment, the detail will be whatever gets them in the least trouble, so something will come out about second homes

deano3

TeamLowe wrote: »

It was on the Today programme this morning that Ed Balls was questioning the business secretary about specifically BTL and second homes.
A published treasury document states that the schemes can't be used for BTLs (how controlled i don't know) but there's nothing about second homes.
Labour are saying it's going to help millionaires get second homes and isn't right and the business secretary was saying that the detail had not been finalised.
so presumably, as with most things with this goverment, the detail will be whatever gets them in the least trouble, so something will come out about second homes

They should of sorted out all the details before the scheme was anounced.

Waino696969

"Help to Buy" is an absolute disaster waiting to happen.

It is a desperate attempt to lure a fresh batch of people into the PONZI scheme which is the UK property market. It will inflate the housing bubble even further when what is needed is cheaper housing costs.

It is clearly a ploy to win votes at the next election, as all the homeowners will be feeling that much 'richer'.

I'll be steering well clear.

harpoboy

Although I am a Landlord myself, I really question the value of this scheme.

The housing market has been flat for the past few years and is starting to pick up, certainly in London and the South East. The last thing it needs it this sort of initiative, which will really drive house prices up faster than they would have done otherwise.

Election in 2015 - house prices up 10-20% since 2013?? A cynic would say this would be a sure fire vote winner for the Tories

kidmugsy

TeamLowe wrote: »

Labour are saying it's going to help millionaires get second homes

After the way Balls and his missus abused MPs' expenses to fund a second home he is, I suppose, an authority on the matter.

deano3

ACG wrote: »

There is a lot of debate going on about people using it for a second property at the minute. It may end up getting changed.

Would it be classed as a second property if it is for the only property in which you can reside, as stated above i rent the other and now live with parents saving for a deposit.

I have close to 0 equity in my rented property so this scheme would provide me with a faster option, subject to it being suitable and of course been eligible.

I do appreciate further details are to be released later in the year, so people's own opinions would be most welcome.