Help to Buy Part 2 - OPENING WITHIN DAYS

Callie22

Turnbull2000 wrote: »

I wouldn't panic just yet. The resulting price gains probably won't gather any real momentum until next Spring.

My partner and I are in a similar position. We don't want to get involved with help-to-buy, but with the scheme being introduced early we're now becoming worried about availability of FTB-type properties, which are already pretty thin on ground if you don't want to go down the new-build route.

Lalalemon

Tigsteroonie wrote: »

Not under H2B2 as announced today - applications can be made after 7 October but no funds paid out until 1 January 2014.

Ahhh thanks for that, so it makes very little difference anyway! I'd rather wait til after Christmas anyway as more properties get put on the market then, so more choice!

witchy1066

kingstreet wrote: »

Help To Buy - Mortgage Guarantee will not have an equity loan component like the current scheme.

It will increase the amount of 95% lending, but with no equity loan and rates around 4.5%, possibly more, and the lender passing on some of the cost of the Government guarantee, this may not be the thing a lot of people seem to think it will be...

I wish more people could understand this, I have spoken to 3 people this morning (friends ) and they are all under the impression they will be guaranteed a mortgage , regardless of affordability or their working status , one of my friends actually said but its a guaranteed mortgage, :rotfl:
oh my I think some people are going to be very disappointed ,especially when they find out what the actual criteria will be , and also realise there is equity loan involved

kings, do you think,
the banks involved will be picking and choosing who they lend to even more than they do now, so in effect making it harder for some to get mortgages,
I understand this would be your opinion only but I think its one worth hearing

Turnbull2000

Callie22 wrote: »

My partner and I are in a similar position. We don't want to get involved with help-to-buy, but with the scheme being introduced early we're now becoming worried about availability of FTB-type properties, which are already pretty thin on ground if you don't want to go down the new-build route.

Especially now as Funding for Lending backed mortgages have been extended to buy-to-let investors. Competition for smaller properties could be very fierce indeed.

Starter properties should experience double digit price growth over the next 12 months. So the sooner you get in the better.

GalaxyStar

Callie22 wrote: »

My partner and I are in a similar position. We don't want to get involved with help-to-buy, but with the scheme being introduced early we're now becoming worried about availability of FTB-type properties, which are already pretty thin on ground if you don't want to go down the new-build route.

We're unsure what to do now too! We don't want to be getting in the race with people, we wanted to try and get in before this came out so we were a bit ahead of it. Now I don't know if the house we were looking at is a good buy or not now!

playaz

Hi guys - can anyone recommend a good site that explains Help2Buy in a 'simplistic' pros and cons manner? I'm quite against it - I am a FTB in a good position however I also do not want to see a big influx of 'new' buyers that will lead to a rise in prices - especially as these 'new' buyers do not know the market and will just offer anything thinking they've got a great deal.

tigsly

Does this mean houses below 600k.. are going to go up in value (as they will be more in demand.. ) and those over 600k - will be harder to shift? is 600k gonig to become a 'sticking point' for buyers?

I'm quite entertained that it was anounced on the radio today - that it was being introduced.. when an EA told me just one Thursday - that it wasunlikely to come in at all - as we were all ready experiencing a bubble...

(Guess EA are pretty clueless..)

Slightly_Squiffy

I think a lot of people are still forgetting that the government aren't just giving the money away, it's all repayable. It is going to flood the market with people who can now afford to buy but still don't have the income to be able to afford repayments on a decent sized mortgage (I'm talking in London terms as that is where I am currently looking to buy). I don't think the lending is going to be as prolific as I first assumed.

Either way, we are still hoping to find a place to complete on before Christmas as we have our nice deposit all saved, just to get ahead.

Either way, this scheme is not going to help the masses. I (and most of my friends...we are all in our late 20ies/early 30ies) are against this scheme. The government really should have learnt 5 years ago that giving people access to high credit is irresponsible. If someone isn't responsible enough to be able to save a 10% deposit for a flat/house, I don't feel they would necessarily be financially responsible enough to maintain a mortgage and all the associated costs. I think we're going to see a steep increase in the number of foreclosures over the next couple of years.

kingstreet

The Government is not giving or lending anything.

If I have to, I'll carry on repeating this until I am blue in the face. All the Government is doing is offering a guarantee to the mortgage lender that if it repossesses the property the Government will guarantee that amount from 80% upwards, up to 95% on a 95% mortgage.

It is also relaxing the lenders' capital requirement, so they will not be required to hold as much capital as normal for a 95% mortgage.

- There is no equity loan

- There will be controls on affordability

- You will have to have a clean credit history

- You cannot use it for a second property

- The rates will be similar to those for NewBuy, not Help To Buy - Equity Loan

- The lender has to pay the Government for the guarantee.

As I said earlier, this is not the "giveaway" people seem to be assuming.

kingstreet

Dan-Dan wrote: »

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 obvious

So, there won't be many cases then?

The purchaser will have to earn over £120k after credit commitments, dependents etc they will be "allowed" to have a 95% mortgage, for which they will pay the going rate.

I don't see the difference between topping this out at £400k?, £500k?, £600k?

There is no equity loan. The Government is lending or giving these people nothing. If you want to argue the toss about Help To Buy - Equity Loan for a £600k purchase, fair enough.