Scathing attack on help to buy

Graham_Devon

wotsthat wrote: »

The guff from Albert Edwards has no value other than headline grabbing.

There seemed to be some balanced criticism of the scheme at the base of the article.

If the scheme doesn't lead to an increase in supply then it'll be 'parked' like others that went before.

Well on a personal level, I find it bizzare that you cannot agree with any of the points raised....therefore, I assume you DO think it's better to pile new buyers with ever increasing debt?

wotsthat

Graham_Devon wrote: »

Well on a personal level, I find it bizzare that you cannot agree with any of the points raised....therefore, I assume you DO think it's better to pile new buyers with ever increasing debt?

Some people have managed to get a house with a 95% mortgage - big deal.

egoode

I've been looking to buy a property in London because I've got a 15% deposit and only need to borrow 2.5 times my income and I'm hoping the place my offer was accepted on does complete. I don't want to still be looking at properties next year when this scheme extends to current homes as I can garantee I won't be able to afford anything in the area I'm currently looking in as the competition for places is already fierce and will just get worse so prices will rise faster than they already are.

TruckerT

grizzly1911 wrote: »

Yep debt slaves going for the dream

And when it all goes wrong, some will blame the borrowers.

TruckerT

Graham_Devon

wotsthat wrote: »

Some people have managed to get a house with a 95% mortgage - big deal.

LOL. This is just a normal 95% mortgage, wotsthat makes out as he rose tinted spectacles once again cloud the very basics of the scheme.

wotsthat

Graham_Devon wrote: »

LOL. This is just a normal 95% mortgage, wotsthat makes out as he rose tinted spectacles once again cloud the very basics of the scheme.

It's better than a normal mortgage as 20% is interest free.

Honestly don't see the big deal. I'm sure the lenders are still being picky on affordability.

I didn't have to stump up a 20% deposit; did you? Why shouldn't we try and help people who want to buy to do so? Might even get an increase in housing supply.

So far 4000 reservations (I read that 95% of reservations tend to complete). Good news.

the_flying_pig

wotsthat wrote: »

...Why shouldn't we try and help people who want to buy to do so?...

I wouldn't necessarily expect a full point-by-point rebuttal, but did you read the article or watch the bbc clip?

Graham_Devon

wotsthat wrote: »

It's better than a normal mortgage as 20% is interest free.

Errr, no it's not.

Do you understand what this scheme is?

wotsthat

Graham_Devon wrote: »

Errr, no it's not.

Do you understand what this scheme is?

Help to Buy is available to all new homebuyers, not just first time buyers.

You only need a minimum 4% deposit to qualify

The Government will lend you up to 20% of the value of your property through an equity loan (this is interest free for 5 years).

The loan can be repaid at any time or on the sale of your home
You will only need to secure up to a 76% mortgage from a bank or building society

Help to Buy is only available on new build homes.

It's not that difficult to understand.

Thrugelmir

wymondham wrote: »

Been thinking about this recently. All Osborne has done is to mask the problem really hasn't he - if houses were affordable then people could buy them without gimmicks.

Not mask it but provide stability. Markets hate uncertainty. Once consumers lose confidence then they will act lemmings.