Help to Buy not for second homes

ging84

harz99 wrote: »

I think Manathome may mean can they use the scheme to buy the next property before they sell the current one.

IE. home one is for sale, but not yet under contract before home two is purchased.

Very unlikely

ManAtHome

ging84 wrote: »

Very unlikely

Going to gum up a few chains if you have to wait for release of funds from the sale of your existing house before you can sign up for a HtB mortgage.

kingstreet

Manchee wrote: »

...Wish they would offer this on non new builds

It is.

It's the HTB- MG scheme which starts in January. More 95% mortgage for second hand property.

kingstreet

ManAtHome wrote: »

Going to gum up a few chains if you have to wait for release of funds from the sale of your existing house before you can sign up for a HtB mortgage.

It does not work that way.

You will simply have to sign a declaration that the sale of your old home and the purchase of your new one will be concurrent.

You will not have to sell, wait a while, then buy. The process cane be simultaneous, as it is now.

kingstreet

demontfort wrote: »

Why doesn't Osborne just do the decent thing, admit he really messed up and just scrap the whole ridculous Help to Buy scheme.

Nobody supports it except desperate housebuilders and estate agents who have their snouts well and truly in the subsidy trough plus a handful of First Time Buyers who are destined to become future sub prime casualties once the BOE wise up and jack up interest rates. :rotfl::rotfl::rotfl::rotfl:

I take it you're talking about HTB-Equity Loan, not HTB-Mortgage Guarantee, the subject of this thread?

demontfort

kingstreet wrote: »

I take it you're talking about HTB-Equity Loan, not HTB-Mortgage Guarantee, the subject of this thread?

I'm talking about the whole HTB programme. It's unfair that people like myself spend years saving up and then put up a lot of their own money as deposit whereas people who haven't saved up get a whacking great tax free loan from the government and potentially better mortgage interest rates.

For a government that is making cuts left, right and centre the Mortgage Guarantee Scheme is unbelievably generous.... no restictions on your income, you can already own your home and it can be for properties of up to £600k.

I think even the stupidity of the Mortgage Guarantee scheme has dawned on the government which is why it keeps changing week on week and why they are being so coy on the details.

tim123456789

demontfort wrote: »

I'm talking about the whole HTB programme. It's unfair that people like myself spend years saving up and then put up a lot of their own money as deposit whereas people who haven't saved up get a whacking great tax free loan from the government and potentially better mortgage interest rates.

.

Of course it's unfair but the Tories want to get re-elected and that wont happen unless the economy recovers.

As it is unlikely that this will happen naturally the only other way is to create a (mini) housing boom

ManAtHome

kingstreet wrote: »

You will simply have to sign a declaration that the sale of your old home and the purchase of your new one will be concurrent.

Cheers, thought that might be the case - of course, if the "sale" falls through and you just really have to rent out the old house...

KnightSmile

so i currently have a 25% deposit saved up and was going to buy in the next few months using all my cash I have saved up.

Could I wait until Jan 2014 and use 5% of my savings then get Georgie Boy to 'lend me' the other 20% making up my 25% deposit with this scheme? That way I could use my unspent savings towards a buy to let property....:rotfl:

samehat

KnightSmile wrote: »

so i currently have a 25% deposit saved up and was going to buy in the next few months using all my cash I have saved up.

Could I wait until Jan 2014 and use 5% of my savings then get Georgie Boy to 'lend me' the other 20% making up my 25% deposit with this scheme? That way I could use my unspent savings towards a buy to let property....:rotfl:

The disadvantage of using a 5% deposit vs a 25% deposit is that interest rates may be much higher (they are with Nationwide anyway, I haven't checked other lenders) so you would need to calculate whether it would be worth it overall.

You bring up a good point - although this scheme is not available on second homes, would the users of such a scheme be prevented from building up their property portfolio after they have completed the purchase of their own home using the scheme? I would imagine so, although they may not have thought of that yet!