More Breaking news Help2Buy II starting now...

michaels

Good news for those who think it is a good thing.

I guess good news for those who don't like it as the sooner it starts the sooner it will have to be withdrawn having met it's objectives.

I guess it also means there is no longer any scope to 'get in first' before those with underendowed deposits have the same chance as those with deposits.

AndyGuil

Very interesting. I don't want/need to share my equity and hence increase in property value with the government so I will give it a miss. I'm sure it will help others. Just watch out for the prices getting hot.

Loughton_Monkey

Good idea to get the housing market in overdrive as quickly as possible, and milk it right up to 2015. Should be an excellent recovery up to pre-crash values, with more and more realising their mistakes of renting, and joining the long queue to find any property going.

Gazzumping here we come.

Make your mind up in 30 minutes, or lose the house. Just like it was in the 70's. Welcome to the real world!

I reckon there's about 20% 'slack' in the system (up to next election), but after that, even I might start to wonder if a small bubble could be forming.

If I were Cameron, I'd withdraw the scheme just before the election, then in the unlikely event of a Labour win, then prices down = labour's fault. Failure to reintroduce it. Prices stagnate = labour's fault. Failure to reintroduce it. Prices go up = Conservative cry "we did the right thing".

The Help to Buy initiative, which applies to England only, aims to make it easier to afford a deposit for a property.

The government will guarantee 15% of a mortgage, allowing lenders to provide up to 95% mortgages at reduced risk.

In an interview in the Sun on Sunday, the prime minister said he was eager to get young people on the housing ladder.

Mr Cameron said: "The need is now. I have always wanted this to come in and frankly the earlier the better.

"What concerns me is that you can't buy a house or a flat even if you are doing OK, you have got decent job prospects and good earnings.

"I am not prepared to be a prime minister of a country with caps on aspiration."

http://www.bbc.co.uk/news/uk-politics-24319583

ruggedtoast

This scheme is flipping ridiculous. People are worried about housing being too expensive, not that they cant get large enough mortgages.

It seems the UK will enact every harebrained scheme imaginable to address the affordable housing crisis other than just building some.

Carl31

Reading the PMs comments on this in the FT, I cant believe he genuinely believes this is a good initiative for FTBs on average salaries. He even mentions that it is not right that people cannot afford the expected deposits. The whole scheme does not consider the long term effects of mortgaging, and what could happen.

The fact its been accelerated due to labour announcements last week shows its to score brownie points with the voters too

wymondham

Can the Government also guarantee a deposit on the next new zippy ipad for me - after all it would also be a personal, private purchase that i'll be making regardless of if it's suitable or overpriced or good value for money, but anyway the tax payer should help me out here.

If they didn't help me then maybe I wouldn't buy it and maybe prices would come down, but lets gloss over that. So given the current policy it would only be right they would assist with this also??

I can't see any difference between my crazy suggestion and Government housing policy - none.

ps I'm ignore the 'more jobs for house builders' issue as these are private companies who should be able to make their business work without state help.

wotsthat

Just wait until Graham hears about this.

Forces personnel are being given 10 year 0% loan towards their first house too up to 50% of salary.

My son is in the Army aged 18 and talking about buying a house. I could lend him the deposit and bank the loans and split the gain with him. Alternatively, I might just start searching early for my Cornish retirement pad and get him to buy it.

This is how these schemes are meant to work isn't it.

Happy days.

Eskimo12345

I'm so disappointed this scheme was ever proposed, let alone brought forward. I've been saving like mad for the last couple of years, and now with this scheme, people who've frittered away most of their money are on a level footing with me when it comes to purchase price. How is that fair?

To be honest though, I'm considering using it to top up my 15% deposit with an extra 10% interest free for five years, bank the difference in mortgage repayments and make a little cash off the scheme, then pay back the loan in full after the five years are up. It just depends if banks have different interest rates for normal folk and help-to-buy folk. I'd feel a little guilty that I'd be making money off the taxpayer, but, well, money's money.

gazzabboi

wotsthat wrote: »

Just wait until Graham hears about this.

Forces personnel are being given 10 year 0% loan towards their first house too up to 50% of salary.

My son is in the Army aged 18 and talking about buying a house. I could lend him the deposit and bank the loans and split the gain with him. Alternatively, I might just start searching early for my Cornish retirement pad and get him to buy it.

This is how these schemes are meant to work isn't it.

Happy days.

This army scheme wouldn't work for your son. Currently the army are given an interest free loan up to 8.5k, its been there years, called lsap. All they are doing is increasing this to be more in line with today's market. Its for soldiers who have served more than 4 years. Its not a loan you can just bank, its attached to the house.

AndyGuil

Eskimo12345 wrote: »

I'm so disappointed this scheme was ever proposed, let alone brought forward. I've been saving like mad for the last couple of years, and now with this scheme, people who've frittered away most of their money are on a level footing with me when it comes to purchase price. How is that fair?

To be honest though, I'm considering using it to top up my 15% deposit with an extra 10% interest free for five years, bank the difference in mortgage repayments and make a little cash off the scheme, then pay back the loan in full after the five years are up. It just depends if banks have different interest rates for normal folk and help-to-buy folk. I'd feel a little guilty that I'd be making money off the taxpayer, but, well, money's money.

The people that do take the scheme will have that to pay back and the government own part of the equity and hence any gains in the property value. No thanks.

michaels

How many of the people knocking the scheme bought their first house with a deposit of less than 20% - only asking?