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Help to Buy Part 2 - OPENING WITHIN DAYS
Comments
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The Government guarantee and the relaxation of capital adequacy requirements means lenders will take less risk and have to hold less reserves than now. There will be greater availability.johannalf88 wrote: »Well that's annoying- January would have been perfect for us!
Am I missing something though with the boom, because I don't really see how it would create one....
The mortgage providers are not lending any more money. If they would lend you say up to 380 with a 10% deposit they are still only going to lend 380 with a 5% deposit.
And the prices of places in London are too high that those with an national average wage can't afford to buy anyway!
I just don't see how it can increase prices, as it's not increasing the money available. If you couldn't afford it before, you are unlikely to be able to afford it now, all that it is doing is allowing people to buy sooner (which I am grateful for), as they don't have to save 10%, only 5%.
Is it that more people will be buying places? But then if the prices get to high the mortgage providers will not lend that much, so it will all stop again??
However, as you point out, you will still be limited to 5x income and the rates will not be sub-3% as they are for HTB-EL. As the scheme is very similar to the current NewBuy scheme, where 95% rates are around the 4.5% mark, this is a useful guide to what's coming.
When this becomes apparent, a lot of the "hoohar" of this scheme is going to be reduced.
Last point, only Lloyds Banking Group is signed up to the scheme, so when it's launched, as with HTB-EL, it will probably be Halifax or no-one at launch time.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
In some areas, a £600k home is like a £150k to£200k home in others.Why on earth should someone be helped in this way to buy a 600k house ?!I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
I am currently in the process of moving out of rented accomodation into a touring caravan in order to save for a deposit. (About 15k within a year).
The reason being that I was always taught that if something seems to good to be true, then it usually is. Is that statement true with this scheme? Where is the catch?0 -
kingstreet wrote: »In some areas, a £600k home is like a £150k to£200k home in others.
Much as i respect your opinion but that sounds absurd , i live in the home counties and i cannot think of many places where this is the case , outside the obviousNever, under any circumstances, take a sleeping pill and a laxative on the same night.0 -
kingstreet wrote: »The Government guarantee and the relaxation of capital adequacy requirements means lenders will take less risk and have to hold less reserves than now. There will be greater availability.
However, as you point out, you will still be limited to 5x income and the rates will not be sub-3% as they are for HTB-EL. As the scheme is very similar to the current NewBuy scheme, where 95% rates are around the 4.5% mark, this is a useful guide to what's coming.
When this becomes apparent, a lot of the "hoohar" of this scheme is going to be reduced.
Last point, only Lloyds Banking Group is signed up to the scheme, so when it's launched, as with HTB-EL, it will probably be Halifax or no-one at launch time.
And RBS and Natwest.0 -
We'd been planning on using HTB in January, it's too early for us now. I guess at least they can get some of the kinks ironed out by then. (Although part of me is wondering just what the government is up to! Trunk_z I agree - what's the catch?!)Debt free except for this blooming mortgage!
Offsetting is the way to go!0 -
Another problem with this is it won't actually help middle to low earners as you need the income to cover a 95% mortgage which is a very big mortgage on a house in the south east.0
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Oh brilliant. Me and my partner are in the middle of saving up and will have our 5% by April/May, January would have been a good time for HTB to have been introduced for us, now by May prices will probably have risen.0
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Can't decide what to make of this! Partner and I were planning on being ready to by ASAP in January.
I'd love to be in time for Christmas (would that even be possible anyway?) but think we'd have to borrow a few grand from parents! We've got the deposit, but it's all the other fees and furniture etc!0 -
I'd love to be in time for Christmas (would that even be possible anyway?)
Not under H2B2 as announced today - applications can be made after 7 October but no funds paid out until 1 January 2014.:heartpuls Mrs Marleyboy :heartpuls
MSE: many of the benefits of a helpful family, without disadvantages like having to compete for the tv remote
Proud Parents to an Aut-some son 0
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