Mortgage help will release a surge of pent up demand.....

HAMISH_MCTAVISH

Despite the talking heads pontificating and naysaying, it seems Osborne's moves to return functionality to a dysfunctional mortgage market have been of great interest to the wider public.

Countrywide, Britain's largest estate agent, said it had received a surge of inquiries from potential buyers since the Budget.

James Poynor, managing director of the firm's new homes division, said: "New customers are certainly showing an increased interest and looking for more detail around the scheme."

Mortgage brokers also reported that many clients had contacted them with questions about "Help to Buy".

David Hollingworth, from brokers London and Country, said: "We have had quite a few inquiries considering that there isn't any end product to talk about at the moment.

"That is quite encouraging and suggests that people are interested in finding out what the options are. Awareness should be higher than we have perhaps seen with previous schemes."

He said the Chancellor's decision to raise the property value limit for the programme to as high as £600,000 was a "significant" move.

"Some of these schemes in the past have tended to be playing around the edges and the end result was they helped a fairly small niche of people. This moves it on from that quite substantially," he added.

http://www.telegraph.co.uk/finance/budget/9949318/Budget-2013-Wealthy-house-buyers-look-to-take-advantage-of-mortgage-aid.html
Good news.:)

moneyinmypocket

I know quite a few people whom are v excited, they can afford mortgage repayments but couldn't get the deposit together. They will be homeowners once this deal takes effect. I suspect lots are in this boat. The house market will really take off again once these people flood the market.

the_flying_pig

OP's subject title uses his own daft EA-lite terminology that obviously appears nowhere in the article. Anyone with even a GCSE in economics would describe the scheme as creating demand that previously did not exist.

Graham_Devon

So this bloke isn't a talking head then?

Everyone else is? Well everyone who doesn't agree, that is?

ukcarper

If it is not going to increase demand why are all the people you keep refering to worried about another boom.

Rinoa

Graham_Devon wrote: »

So this bloke isn't a talking head then?

Everyone else is? Well everyone who doesn't agree, that is?

Do you think it's time to buy the other half of your house?

CLAPTON

The new buy scheme provides a taxpayers contribution of 20% )interest free loan);
will the mortgage companies treat this as a 25% deposit for evaluating affordability etc and offer a low interest rate?

How will the government allow lenders to value the mortgage for capital ratio purposes?

grizzly1911

CLAPTON wrote: »

The new buy scheme provides a taxpayers contribution of 20% )interest free loan);
will the mortgage companies treat this as a 25% deposit for evaluating affordability etc and offer a low interest rate?

How will the government allow lenders to value the mortgage for capital ratio purposes?

AIUI the lender will have to pay the government to be able to use the guarantee and capital adequacy side step. The price for that hasn't yet been thought up, certainly not released.

Somehow that pricing will be passed onto the customer, higher rates or extra fees.

I would be surprised if these products will be cheap. Just depends on how desperate you are.

For new builds I would expect prices to be high too so builders maximise their return from those desperate punters.

John_Pierpoint

Short term inflationary boost intended to get the Tories re-elected.and solve some negative equity issues, as a rising tide floats nearly all boats.
Probably a poisoned chalice for the next government.

eelsoup

It will be very interesting to watch the impact of this policy and see whether it achieves it's desired results.

I am sceptical of how much this will actually help the people it is allegedly aimed at. Most of the young people I know (my daughter included) do not have savings which amount to 5% of a deposit for a house. Many are in negative territory, as they have loans and overdrafts from their university days.

Interestingly these plans have brought with them greater acknowledgement in the media that the housing market is still in bubble territory.

grizzly1911

eelsoup wrote: »

It will be very interesting to watch the impact of this policy and see whether it achieves it's desired results.

I am sceptical of how much this will actually help the people it is allegedly aimed at. Most of the young people I know (my daughter included) do not have savings which amount to 5% of a deposit for a house. Many are in negative territory, as they have loans and overdrafts from their university days.

IMO the fact that many more do go to uni now, do have additional debt (on top of the fee/ maintenance), then may need to stay away from home for work with the associated costs is certainly a big part of the problem. The fact that even those that graduatecan't necessarily get well paid jobs with real prospects or they need to do additional qualifications at low pay, adds to the problem.

They are perhaps 6- 10 years behind a those from 30 years ago who went into good employment straight from school.

Incomes will also be hampered by the cost of student loans, reducing disposable income, for a lot longer, if they ever repay them at all.

Relative disposable incomes are falling for many of them.