Help to Buy may have to be scrapped, Vince Cable warns

ess0two

HAMISH_MCTAVISH wrote: »

As normal then.

Carry on....

Oh dear Graham taking another shafting again:beer:

Some things never change.............

Graham_Devon

wotsthat wrote: »

Nice picture. You with your trousers round your ankles and Ray Boulger with the tissues.

You lose credibility after doing a character assassination of Ray Boulger and Vince Cable but then using them to support your POV.

Don't think so.

What this shows is even those who are usually pro debt and HPI are against this. Even people I'd usually disagree with.

It add's to my point, rather than detracting from it.

Why won't you look at what they say, rather than keep harking on about what I say?

wotsthat

Graham_Devon wrote: »

Don't think so.

What this shows is even those who are usually pro debt and HPI are against this. Even people I'd usually disagree with.

It add's to my point, rather than detracting from it.

Why won't you look at what they say, rather than keep harking on about what I say?

You've basically said that their opinions are valueless but here you are using their supposed opposition to help to buy as evidence of support for your cause. It's a severe case of confirmation bias when you'll allow people who you have no respect for to do the confirming.

I'm not feverishly looking for support from any Tom, !!!!!! or Harry. There are risks to help to buy - this is known. It doesn't matter who says what now - help to buy is going to play out. May as well sit back and enjoy the experiment and watching the politics.

boltneck123

Am I right in saying that these Help to Buy loans are interest free for 5 years? Then after this point, you have to start paying the government back their money + interest, as well as maintain your mortgage payments to the bank?

I am on the fence with this, I cannot decide if I think there will be a bubble or not, it does concern me that there may very well be a lot of people that cannot afford to pay the government loan back in five years + make their ordinary mortgage payments.

However in 5 years (assuming there has not been a bust), if people are due to remortgage, they should get a better LTV ratio if house prices continued to rise like they are.

I am personally hoping that there is no bust within the next five years, so I can remortgage and make the most of my increased house value to get a better LTV.

Of course if interest rates start to go up from now and until then, it may not make any difference. I may get something closer to the rate I have now, lower or slightly higher, maybe even a lot higher.

For now at least the Help to Buy scheme seems to be injecting some much needed growth into the property market, however if demand really, really, really starts to go far ahead of supply then is a bubble not imminent? If so, then stopping the scheme to slow things down makes sense to me.

Just some musing, I am not 100% on the details of the scheme though.

CLAPTON

boltneck123 wrote: »

Am I right in saying that these Help to Buy loans are interest free for 5 years? Then after this point, you have to start paying the government back their money + interest, as well as maintain your mortgage payments to the bank?

I am on the fence with this, I cannot decide if I think there will be a bubble or not, it does concern me that there may very well be a lot of people that cannot afford to pay the government loan back in five years + make their ordinary mortgage payments.

However in 5 years (assuming there has not been a bust), if people are due to remortgage, they should get a better LTV ratio if house prices continued to rise like they are.

I am personally hoping that there is no bust within the next five years, so I can remortgage and make the most of my increased house value to get a better LTV.

Of course if interest rates start to go up from now and until then, it may not make any difference. I may get something closer to the rate I have now, lower or slightly higher, maybe even a lot higher.

For now at least the Help to Buy scheme seems to be injecting some much needed growth into the property market, however if demand really, really, really starts to go far ahead of supply then is a bubble not imminent? If so, then stopping the scheme to slow things down makes sense to me.

Just some musing, I am not 100% on the details of the scheme though.

sorry it's me

but no you're are wrong ; well wrong and right.

boltneck123

No need to appologise, it is a debate forum.

Where have I gone wrong?

CLAPTON

boltneck123 wrote: »

No need to appologise, it is a debate forum.

Where have I gone wrong?

tomorrow

a stessful day and a bottle of (cheap) red wine prevents long posts

boltneck123

Haha, I like your sense of humor .

Very well, I await your rebuttal with eager eyes.

CLAPTON

boltneck123 wrote: »

Am I right in saying that these Help to Buy loans are interest free for 5 years? Then after this point, you have to start paying the government back their money + interest, as well as maintain your mortgage payments to the bank?

I am on the fence with this, I cannot decide if I think there will be a bubble or not, it does concern me that there may very well be a lot of people that cannot afford to pay the government loan back in five years + make their ordinary mortgage payments.

However in 5 years (assuming there has not been a bust), if people are due to remortgage, they should get a better LTV ratio if house prices continued to rise like they are.

I am personally hoping that there is no bust within the next five years, so I can remortgage and make the most of my increased house value to get a better LTV.

Of course if interest rates start to go up from now and until then, it may not make any difference. I may get something closer to the rate I have now, lower or slightly higher, maybe even a lot higher.

For now at least the Help to Buy scheme seems to be injecting some much needed growth into the property market, however if demand really, really, really starts to go far ahead of supply then is a bubble not imminent? If so, then stopping the scheme to slow things down makes sense to me.

Just some musing, I am not 100% on the details of the scheme though.

firstly need to know that there are two schemes

- the current one started in April 2013 which is the HTB equity loan scheme for new builds only.

this does indeed offer a 20% 'interest' free government loan for the first 5 years
however the government 'owns' 20 % of the property so when you sell (or repay) you pay the government 20% of the then agreed value: depending upon the market this may well be more than paying today's low interest rates

after 5 years you start paying a fee of 1.75% (then indexed linked to inflation + 1%) but there is no obligation to repay the loan until either you sell the property or the mortgage term finishes

secondly: the mortgage guarantee scheme scheduled to start Jan 2014 and applies to already loved properties as well as new builds.

there is no interest free part but the government offers a guarantee to the lender so that you can borrow up to 95% of the value: the full details are not finalised yet;


The views on the schemes are mixed but there is some general support for the new build scheme as it is seen to increase supply,

however the guarantee scheme will increase demand for already loved properties without increasing supply and so is expected to simply cause prices to rise.

boltneck123

I cannot argue with that, fair enough.

While I am on the fence with the validity of this scheme, I do find my self leaning towards giving it my full support more and more. I cannot deny the need for market growth and increased economic activity.

For now, let it run I think and we can just wait and see.

I am fortunate though, not had to use the scheme my self, and I do feel better about that, more confident and rather proud tbh.