Help to buy Mortgage Guarantee scenario

wotsthat

Graham_Devon wrote: »

I would assume it will be on the same sort of rates that we see for help to buy part 1.

With lloyds, a 5 year fix appears to be 4.89% (with no fee) for a 90% mortgage. Then 3.5% over base from year 5 on. So with base rates at 5%, a mortgage rate of 8.5%.

So I would assume a 95% mortgage with the 15% guarantee would be around the same pricing?

Are you making this up as you go along? Why would someone on HTB 1 be paying 4.89% when that's the rate for a 90% mortgage?

You're going to have to show me the link that says the mortgage will be 8.5% at the end of the fix too - I can't see it.

Have you been making things up in real life to put people off?

Graham_Devon

wotsthat wrote: »

Are you making this up as you go along? Why would someone on HTB 1 be paying 4.89% when that's the rate for a 90% mortgage?

You're going to have to show me the link that says the mortgage will be 8.5% at the end of the fix too - I can't see it.

Have you been making things up in real life to put people off?

What part of "assume" do you not understand?

We are talking Help to buy part 2. Not 1.

We don't know the detail of the mortgage rates for HTB2. So how can we do anything but look at other products from the same lender, at around the same LTV. They don't currently have 95% loans available, so closest is 90%.

You have made loads up to accuse me of making things up. Give it up!

[Deleted User]

Graham_Devon wrote: »

I would assume it will be on the same sort of rates that we see for help to buy part 1.

I don't think that's a correct assumption - more likely to be in-line with the current NewBuy scheme (credit to Kingstreet for previous advice there)

Graham_Devon wrote: »

The key thing help to buy buyers need to be aware of is that they won't simply be able to move product.

That's interesting - I didn't know that - so they'd likely be locked in with one vendor for the duration of the 25 - 30 years?!

wotsthat

Graham_Devon wrote: »

What part of "assume" do you not understand?

We are talking Help to buy part 2. Not 1.

We don't know the detail of the mortgage rates for HTB2. So how can we do anything but look at other products from the same lender, at around the same LTV. They don't currently have 95% loans available, so closest is 90%.

I understand what assume means. You've assumed that HTB1 buyers are getting 90% loans - that's wrong.

Why would HTB 2 buyers be getting 95% LTV loan prices. The risk to the lender is lower thanks to the guarantee.

..and base rates at 5% in 5 years is some assumption too!

Graham_Devon

wotsthat wrote: »

I understand what assume means. You've assumed that HTB1 buyers are getting 90% loans - that's wrong.

Why would HTB 2 buyers be getting 95% LTV loan prices. The risk to the lender is lower thanks to the guarantee.

..and base rates at 5% in 5 years is some assumption too!

This thread is about HTB2....the mortgage guarantee.

That's what I was referencing and talking about. Nothing to do with HTB1 and if you have assumed that's what I'm talking about, then apologies, but I have no idea why you would assume that, as it's pretty obvious everyone else is talking about the mortgage guarentee, i.e. HTB2.

You've even quoted me stating I'm talking about HTB2. Either you are not reading, or are purposely being extremely difficult. Either way, please stop doing this?

It's only you talking about HTB1, no one else. Though I think you know that and are just doing your best to start something again.

wotsthat

Graham_Devon wrote: »

This thread is about HTB2....the mortgage guarantee.

That's what I was referencing and talking about. Nothing to do with HTB1 and if you have assumed that's what I'm talking about, then apologies, but I have no idea why you would assume that, as it's pretty obvious everyone else is talking about the mortgage guarentee, i.e. HTB2.

You've even quoted me stating I'm talking about HTB2. Either you are not reading, or are purposely being extremely difficult.

You said you assumed that HTB2 would be on the same sort of rates as HTB1.

Graham_Devon wrote: »

I would assume it will be on the same sort of rates that we see for help to buy part 1.

Then as an example you chose a 90% mortgage as being typical of what a HTB1 buyer could get ignoring the fact that their LTV is 75%.

Graham_Devon wrote: »

With lloyds, a 5 year fix appears to be 4.89% (with no fee) for a 90% mortgage.

Then, just in case you hadn't scared prospective buyers off, you made up the rate that the mortgage would revert to in 5 years.

Graham_Devon wrote: »

Then 3.5% over base from year 5 on. So with base rates at 5%, a mortgage rate of 8.5%.

You should be ashamed of yourself. Someone turns up on this board asking questions and you deliberately set out to misinform.

You sad squirming fool.

Graham_Devon

wotsthat wrote: »

You said you assumed that HTB2 would be on the same sort of rates as HTB1.



Then as an example you chose a 90% mortgage as being typical of what a HTB1 buyer could get ignoring the fact that their LTV is 75%.



Then, just in case you hadn't scared prospective buyers off, you made up the rate that the mortgage would revert to in 5 years.



You should be ashamed of yourself. Someone turns up on this board asking questions and you deliberately set out to misinform.

You sad squirming fool.

Here we go again.

I said same sort of rate. I did not say typical.

Lloyds does not list their help to buy rate. Therefore, I said same sort of rates, as I know that lloyds help to buy rates are around 5%.

I didn't make up the rate it would revert to. I stated the rates on the mortgage I was referencing.

You are making an absolute mountain out of a molehill. And by the looks of the abuse, getting a little angry as it doesn't go your way and you continue to change the words I used.

You are all over the forum looking for an argument based on a word you can change the meaning on. What's up?

Loughton_Monkey

At 1:55 p.m., you wrote:

Graham_Devon wrote: »

.....But the question is....we don't know the detail, and other banks are awaiting the detail before deciding whether to join in.

38 minutes later, you wrote:

Graham_Devon wrote: »

The key thing help to buy buyers need to be aware of is that they won't simply be able to move product. They could well be looking for another 5-10% "high street" product (due to their initial 5% deposit), therefore face even higher rates, or find themselves stuck on the same mortgage.

Where did you get this information from all of a sudden? Are you psychic? Do you have a link? If not, we can only assume you are making things up.

wotsthat

Graham_Devon wrote: »

You are making an absolute mountain out of a molehill. And by the looks of the abuse, getting a little angry as it doesn't go your way and you continue to change the words I used.

I quoted you exactly.

At best you've shown you don't have a clue and at worst you've been caught lying. Keep playing the victim though.

Graham_Devon

wotsthat wrote: »

I quoted you exactly.

At best you've shown you don't have a clue and at worst you've been caught lying. Keep playing the victim though.

If you had quoted me exactly you wouldn't have told me I stated that the typical rate of a HTB mortgage. As I didn't.

I've not been caught lying. I've lied about nothing, just said "same sort of rates", which is true. You are just gettin increasinly hot under the collar as you find it more and more difficult to twist what I have said.