MSE News: Help to Buy mortgage scheme aiding 4,000 home buyers, builders say 6 June 2013 at 12:46PM edited 6 June 2013 at 12:57PM in Mortgages & Endowments 2 replies 1.4K views

Former_MSE_Helen

"An extra 4,000 people are set to buy a home following the launch of the Government's Help to Buy mortgage scheme..."

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Help to Buy mortgage scheme aiding 4,000 home buyers, builders say



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Pincher

Let's see what happens when the BOE starts climbing, and these people with borderline affordability stop paying their mortgage.

I wonder if it's legal for the UK government to hedge against BOE interest rate, to minimise the effect of the pay out. That would be the ultimate insider trading, surely.

brit1234

MSE_Helen wrote: »

"An extra 4,000 people are set to buy a home following the launch of the Government's Help to Buy mortgage scheme..."

More spin by the vested interest builders. No doubt trying to divert all the negative headlines from everyone else on the scheme.

Figures from the Home Builders Federation (HBF) show, on average, about 500 people per week are reserving homes under the eight-week-old scheme.

Thats from the MSE report, so 4,000 reserved not sold says in the Financial Times below; Not all 4000 reservations will turn into sales.




There were 2,291 home purchases under the previous scheme Newbuy in one year which was first time buyers only. The only difference is Help to Buy is open to everyone. Based on these figures with this scheme I think it is fair to suggest it not a majority of first time buyers taking up the scheme but other buyers. It would be interesting to see who they are.

I personally think the scheme is a scam designed to benefit the builders only and the buyer to over borrow whilst also putting the tax payer at risk. Like the previous poster stated, what happens when interest rates go up, QE & Funding for lending ends? The maxed out borrowers will be at the mercy of far higher mortgage rates.