Help to buy scheme

kingstreet

HTB - Mortgage Guarantee encourages lenders to increase the number of 90%+ mortgages by the Govt giving lenders a guarantee from 80% loan to value upto 95% if applicable.

It will also relax the capital requirements for such mortgages.

It is very similar to the NewBuy scheme I mentioned which is currently for newbuild only.

I'm sorry if you can't find verification for what I'm saying, I suggest you contact a broker for advice or hope for another member here to disagree with my information.

Help To Buy - Equity Loan will continue in its current form but will still apply only to newbuilds.

joe134

kingstreet wrote: »

HTB - Mortgage Guarantee encourages lenders to increase the number of 90%+ mortgages by the Govt giving lenders a guarantee from 80% loan to value upto 95% if applicable.

It will also relax the capital requirements for such mortgages.

It is very similar to the NewBuy scheme I mentioned which is currently for newbuild only.

I'm sorry if you can't find verification for what I'm saying, I suggest you contact a broker for advice or hope for another member here to disagree with my information.

Help To Buy - Equity Loan will continue in its current form but will still apply only to newbuilds.

Thanks kingstreet, part 2 basically helps the lender, not the borrower, by guaranteeing some, ( not all ) of any shortfall, should the borrower, fail to meet the required payments, and the house is foreclosed.
How that helps borrowers, I fail to see, apart from more money being loaned, because of the guarantee.
New/firstime buyers are basically going to be the same as anyone else, with a 5% deposit, if they want a second hand house, now, so no advantage in waiting?

kingstreet

If you are buying on HTB - MG with 5% deposit, you are going to find more lenders willing to help and if the current NewBuy rates are any reflection, at around 4.5%, they will be lower than equivalent non-HTB rated 95% products.

If you want a 95% product now, you can wait months for the few lenders in the market to actually process your application. HTB-MG should help with that.

joe134

kingstreet wrote: »

If you are buying on HTB - MG with 5% deposit, you are going to find more lenders willing to help and if the current NewBuy rates are any reflection, at around 4.5%, they will be lower than equivalent non-HTB rated 95% products.

If you want a 95% product now, you can wait months for the few lenders in the market to actually process your application. HTB-MG should help with that.

Thanks kingstreet.
I was intending to tell Grandson to wait and see what january brings, (we, agreed that), because, he prefers a older property, and it gives him time to save a bit more. He,s got £15k deposit now saved, and adding by £350pcm by adding to an Isa,until january at least, or longer, if it has to be.
I don,t know how his mortgage application will fare, he,s just got his credit rating back to par, after a long 6+ year slog, after a bad , self inflicted run.
I wont advise him to take on more than he can afford, BUT, he, like most kids of today,( 33 years old) want it all, now,and the HtB newbuy, his friend has, has spurred him into wanting Asap.
The 20% Gov equity loan, to me, is fine for the first 5 years, but, it allows them to buy, beyond thier 4.5 times earnings, and has to be repaid. Jam today;
Thanks for your replies, much appreciated.:beer:

joe134

hi,having difficulty finding the abbrevations of mortgages available.
h/p;;c/a;;etc. can anyone advise please,there are so many even for the same mortgage?

kingstreet

Don't know, as not sure where you are looking.

c/a - current account?

h/p - house purchase?

rem - remortgage

etc.

joe134

kingstreet wrote: »

Don't know, as not sure where you are looking.

c/a - current account?

h/p - house purchase?

rem - remortgage

etc.

Hi Kingstreet, just looking at best buys available with all lenders . mostly hsbc,chelsea, halifax, they all tend to use the same termanology.
best 5 year fixed @ 90/95% LTV, no frills or fees if possible, but probably fees unavoidable.eg;
Hsbc do 2 , 5 year fixed @ 4.39%.
; 1 c/a ;h/p with £499 fee, the other h/p £999. possible £500, both possible cashback.so presume £500 off for having a c/a?

kingstreet

I expect so.

For clarification, ask the lender in question.

joe134

kingstreet wrote: »

I expect so.

For clarification, ask the lender in question.

cheers
just 2 more,ex/c;;bbr??

kingstreet

ex/c - existing mortgage customer/borrower?

bbr - bank base rate? Can be Bank of England or in Barclays' case, Barclays Bank Base rate (currently same at 0.5%).