Mortgage Guarantee Scheme January 2014

gbot

Dont suppose anyone has heard if this will be available in Northern Ireland??

saverbuyer

Thankfully they have shown a bit of common sense and confirmed that funding won't be set aside by the Executive to pay for it.

Won't be coming here.

gbot

Was that announced or in the press? An article that I read stated that it would be available in UK not only England as is the case for the NewBuy scheme.

saverbuyer

gbot wrote: »

Was that announced or in the press? An article that I read stated that it would be available in UK not only England as is the case for the NewBuy scheme.

Yes, about 2 weeks ago. No new buy or mortgage guarantee scheme for N.I.

They say there was no need and prefered to work with coownership (another pointless scheme).

gbot

ok thanks was hoping that would help with deposit saving!

saverbuyer

No. Better to put the head down, cut back and save the good old fashioned way. This scheme basically gives a loan for a deposit. Not a good thing in my book and one of the things that caused this mess. If you can't afford to save a deposit, you can't afford a house.

gbot

I know what you are saying but you do still need a deposit albeit a small one at 5%..... it is giving the lender extra security, not a loan for a deposit.

Also, all other lending criteria applies ...therefore still lending responsibly, there would be no guarantee that you would get a mortgage.

I think it would be a big help to some people and let them take advantage of houses at current lower prices....

neilem

gbot wrote: »

I know what you are saying but you do still need a deposit albeit a small one at 5%..... it is giving the lender extra security, not a loan for a deposit.

Also, all other lending criteria applies ...therefore still lending responsibly, there would be no guarantee that you would get a mortgage.

I think it would be a big help to some people and let them take advantage of houses at current lower prices....

The scheme is a bad idea, its sole objective is keeping house prices higher than it should. So when you seemly cannot afford one right now, why would think it's a good idea to bloat the market even more, to the point where you have even less chance of affording a house?

Like was advised before, just save the good old fashioned way, and then pay what you think the house is worth... afterall, it is only a pile of bricks with a roof for shelter. If this was any other market, prices would lower naturally to peoples affordability levels, otherwise the product would never be sold.