MSE News: Government reveals more details of Help To Buy guarantee scheme

kingstreet

This thread is about Help To Buy - Mortgage Guarantee, there is no interest-free loan, just a Government guarantee on the excess over 80% to safeguard the lenders' position on higher LTV loans.

We had all the debate about Help To Buy - Equity Loan when that was launched in April.

leveller2911

a_d_k_80 wrote: »

Thank you for the advice but I work in the industry and know what I'm talking
about

.


Originally Posted by a_d_k_80
Disagree. If you don't want 'debt' don't buy a house. You are buying an asset, not taking on debt.


Really? Truely a Bramah that one.......

leveller2911

kingstreet wrote: »

This thread is about Help To Buy - Mortgage Guarantee, there is no interest-free loan, just a Government guarantee on the excess over 80% to safeguard the lenders' position on higher LTV loans.

We had all the debate about Help To Buy - Equity Loan when that was launched in April.

What are your thoughts on these schemes?, taking your professional hat off for a minute.:D

Thrugelmir

a_d_k_80 wrote: »

Thank you for the advice but I work in the industry and know what I'm talking about. I'm not saying the asset can't fluctuate in value. But for me it is about opportunity cost. If I am to be lent 15% of the value for 5 years at 0% (which I already have) and I can invest it @ > loan interest rate (+ / - the fall....or rise in asset value) it is profitable. For me, being in the investment industry, I have full faith in being able to do that, hence I find it a good thing. I am not saying it is good for everyone.....but what I was saying is that making a comment about just viewing it as taking on debt is inaccurate. It is 'debt' that you NEED to take on to buy a house. It is only making it CHEAPER debt. But of course, if you have a particularly pessimistic view on the housing market, don't do it!

Who lends at 0%..........:cool:

Pincher

TESCO's 0% Balance Transfer deal at 0% Fee last month, moneysaving e-mail. It really works.

Not available any more, sadly.

theblagger

So really subsiding the banks again...lol...like a carousel....until it all goes t*ts up..and it will

kingstreet

leveller2911 wrote: »

What are your thoughts on these schemes?, taking your professional hat off for a minute.:D

To be brutally honest, I come on here, I answer questions and help people and keep the hell away from anything to do with opinions.

I accept people are entitled to theirs, as long as they are basing them on facts and not a mistaken understanding they derive from Daily Mail & Co.

The latter was not aimed at you, BTW.

wymondham

The fact it goes up to £600,000 proves it's nothing to do with getting on the ladder (or the 2nd rung!) - it's to help rich people get richer.