Help to Buy 2014

sj239

Right, but the 15% cash you keep yourself is interest free for 5 years versus putting all the cash you have into the house on day one. I think the real downside is the loss of potential upside in the value of the house that you have to 'share' with the Government.

The interest rate point is an interesting one, but I would tend to agree with you although who knows what the difference would really be?

Dan:_4

sj239 wrote: »

Right, but the 15% cash you keep yourself is interest free for 5 years versus putting all the cash you have into the house on day one. I think the real downside is the loss of potential upside in the value of the house that you have to 'share' with the Government.

The interest rate point is an interesting one, but I would tend to agree with you although who knows what the difference would really be?

What 5 year interest free?
What 'share' with the Government?

You are getting confused between the existing HTB scheme (for new builds) and the HTB that is being introduced Jan 14 - both are very different.

witchy1066

Dan: wrote: »

What 5 year interest free?
What 'share' with the Government?

You are getting confused between the existing HTB scheme (for new builds) and the HTB that is being introduced Jan 14 - both are very different.

thank you Dan,
as many posters have said you will not be getting any loan or discount with the jan 14 scheme, a totally different scheme

mrginge

sj239 wrote: »

Right, but the 15% cash you keep yourself is interest free for 5 years versus putting all the cash you have into the house on day one. I think the real downside is the loss of potential upside in the value of the house that you have to 'share' with the Government.

The interest rate point is an interesting one, but I would tend to agree with you although who knows what the difference would really be?

Have you read any of the comments on this thread?

hezza86

kingstreet wrote: »

Is HTB - MG going to be available in Scotland?

HTB - EL isn't.

Yes it will be. We have been in to discuss things with our financial advisor already as we are currently preparing our flat to go on the market in the new year. Our deposit is gifted and ideally we only want to take 5% from the relative and not 10% and our advisor has already discussed the very tight criteria that will likely be imposed and feels we should meet it all. so fingers crossed. it will help us move on at last.

kingstreet

I think sj is suggesting he'll be able to use HTB-MG and put down a lower deposit and get the same rate as he would for an 80% mortgage if he wasn't using HTB-MG.

I believe sj is incorrect in that assumption. I believe rates for HTB-MG will be the same as they are for NewBuy now and they will not be much lower.

NewBuy has virtually the same guarantee, part funded by the builder and HMG.

kingstreet

More on the scheme here;-

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/221897/help_to_buy_mortgage_guarantee_scheme_outline.pdf

Thrugelmir

kingstreet wrote: »

More on the scheme here;-

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/221897/help_to_buy_mortgage_guarantee_scheme_outline.pdf

Post this up as a sticky thread.

kingstreet

As mentioned on HBR&S last week, we could do with some of the stickies being allowed to die and replace them with relevant ones, such as matrimonial split, accidental landlord and schemes such as HTB.

sj239

Thanks for the clarification. So my dilemma is still whether I buy now with my deposit (15-20%) or hold off and wait for the scheme to hit in which case I could get an equivalent rate but with a slightly lower deposit.

The trade off is house prices going up a fair bit from Jan 2014 from the influx of new buyers in the market.