Help to buy

quantic

Was talking to a friend at the weekend who has just bought a house using help to buy, he said that they are looking to open this to all buyers not just for new builds. Im not quite sure how it works though.

Is it only open to people who put down 5% or can someone who has say 30% use it so have a theoretical 50% LTV ratio in order to get the best rates?

Thanks

CLAPTON

the change in the rules (Jan 2014) will allow for the purchase of existing stock rather then just new builds

and no the rules mean you have to have more than 85% mortgage

shortchanged_2

The intention is to help people who can't raise much more than a 5% deposit themselves.

However in principle I'm sure it will be abused and manipulated like other schemes that are on offer.

amnblog

CLAPTON wrote: »

the change in the rules (Jan 2014) will allow for the purchase of existing stock rather then just new builds

and no the rules mean you have to have more than 85% mortgage

This is not correct.

The current phase of the scheme allows for the purchase of new build properties with 5% deposit and 20% held as equity by the Government.

The phase from January will support lenders to allow them to offer mortgages up to 95% for any suitable property (new build or existing stock). This support is provided by underwriting the additional risk that lenders undertake on smaller deposit deals.


The borrower will have to manage the whole of the purchase price and resultant mortgage as they is no equity stake held.

Therefore, the January 2014 move does not extend help to Buy in its current form to existing stock.

witchy1066

OP if you have 30% LTV why would you need a HTB scheme ?

the schemes are aimed to help low income or non savers get into debt they can ill afford, sorry I meant on the property ladder and encourages them to get mortgages they will not be able to maintain when the interest rates increase but then we will see loads of repossessed property on the market for those of us who have spent years saving for a decent deposit thus being able to get an affordable house for a good price, MAYBE

bt1

witchy1066 wrote: »

OP if you have 30% LTV why would you need a HTB scheme ?

the schemes are aimed to help low income or non savers get into debt they can ill afford, sorry I meant on the property ladder and encourages them to get mortgages they will not be able to maintain when the interest rates increase but then we will see loads of repossessed property on the market for those of us who have spent years saving for a decent deposit thus being able to get an affordable house for a good price, MAYBE

That's helpful!

Tony_MechEng

Witchy1066

what about people who DID save up big deposits and bought a property in 2007 before house prices dropped, then 6 years later have worked their !!! off to get out of 15k negative equity and in that time started a family and want to move into a bigger property without waiting another few years to again save up yet another deposit? What part of that statement implies low income or a non saver?

Stop being so jumped up.

witchy1066

its not being jumped up its being realistic

as a tax payer I think I have as much right to have my say as anyone ,

we are all entitled to our opinion and mine is that the government schemes are not going to help anyone

if you can not afford to move , then you should stay were you are ,and save up for the deposit , its what they call life,

don't blame me for negative equity, I am in the same boat ,

I paid cash for my present home and will be lucky if I get a penny because the land owner is evicting us but instead of seeing what the government or council can do for us we have taken responsibility for ourselves and started saving every penny we can, we will not be able to buy a large 3 bed or even a 2 bed semi but whatever we get it will be ours and we will appreciate it all the more for being so

Tony_MechEng

you can have your views on the scheme but to say the only people who take up the scheme is low earners or cant save up a deposit is just plain patronising.

Who is saying i cant afford to move? we have saved a 5-10% deposit, but the help to buy scheme will get us a 2% better rate, which works out around a £250-300 a month saving over a old house 10% mortgage. within 3-4 years thats 10k off the 'new build inflated price' paid off. In actual fact around my area the difference between a new build 3bed and a old house is much less than that. Throw in the saving in fuel for a 2012 building compare to a 1960's, throw in no unexpected gas boiler breakdowns, leaking roofs, rising damp... there are clearly benefits to the HTB scheme even if you think there are not.

Not blaming anyone for the negative, just dealing with the situation.

you paid cash for your home. sounds dodgey? tax evasion? !!!!!? clearly you deserve to lose it? im kidding, but get my point on judgemental attitudes on here...

jtr2803

I won't entertain the tit for tat argument but yes, there will be people that abuse the scheme and those who will ultimately benefit from it that probably shouldn't.

But please don't assume all of us looking to use this scheme are all vagrants or unworthy. We could happily afford the mortgage on a property around the £230k mark but as we are currently renting then saving up the required 10-15% deposit, plus finds for legal/moving costs and stamp duty etc is a lot harder. We have no intention of trying to fleece the system and as long as we pay our mortgage then where is the harm in that?

I am sure there are millions spent on really unworthy schemes..........;)

leveller2911

jtr2803 wrote: »

I won't entertain the tit for tat argument but yes, there will be people that abuse the scheme and those who will ultimately benefit from it that probably shouldn't.

But please don't assume all of us looking to use this scheme are all vagrants or unworthy. We could happily afford the mortgage on a property around the £230k mark but as we are currently renting then saving up the required 10-15% deposit, plus finds for legal/moving costs and stamp duty etc is a lot harder. We have no intention of trying to fleece the system and as long as we pay our mortgage then where is the harm in that?

I am sure there are millions spent on really unworthy schemes..........;)

Why is this scheme worthy?. Its worthy to you because you would benefit from it. Why should the taxpayer subsidise/ act a guarantor for your mortgage?... The desperate measures this Government is grasping at to prop up the housing market?.. Can you not see that in taking up the scheme your underpinning the current high house prices and more importantly to you and me, rents..

Where is the money coming from for the loans?, if its interest free for 5 years and then the 6th year its 1.75% where does the Government borrow money interest free for 5 years?. We have cuts in just about all our services but somehow the Condems have enough money to lend people for a mortgage ,20% of a house priced up to £600k.......Truely bizarre way to run a country.

Capitalist Tories propmoting a Socialist ideology that "we deserve to all own a house".. Nothing personal, its a dig at the pathetic vote buying scheme .