Help-To-Buy Three Months Early: Any takers?

jowie

I guess most people have heard that the government has brought the new Help-To-Buy scheme forward to this week?

http://www.telegraph.co.uk/finance/personalfinance/houseprices/10343049/RBS-and-Lloyds-sign-up-as-Government-launches-Help-to-Buy-three-months-early.html

Is anyone taking advantage of the situation? I am currently in the process of buying a house. In fact, Halifax are supposed to be doing their survey today. My mortgage advisor is away on holiday but I'm trying to find out more information. I've applied for a 10% mortgage but am being gifted some of that from my parents. If I could switch to the new scheme and only pay out 5% that would be a great help.

So I'd be interested if anybody else has been researching any of this and if you know how long I'll have to wait in order to get on the scheme, or if indeed I am too late?

Thanks!

Fitzkepp

I'll keep an interested eye on this, as right now we're waiting to kick off with a 10% mortgage in the spring - but would be in a position to move on a 5% right now. I suspect the range of deals even with HTB would be better via waiting and going for 10% though.

amnblog

Jowie

You have no options now as there are no products.

If Halifax launch any products before you complete you may be able to take advantage and switch rate.

of course there is no guaranteeing you will pass credit score for 95% just because you did for 90%.

kingstreet

You seen the fees in Mortgage Solutions?

They are talking about 9 basis points for 90% to 95%.

According to sources, the cost to lenders of the government guarantee starts at 30 basis points for the 80 to 85% loan to Value bracket, although this may change, 40 basis points at 85% to 90% and 90 basis points at 90 to 95% Loan to Value. The government will review its fees each year and lenders must notify the government if they wish to participate and the LTV bands they choose to lend in.

I'm trying to figure out if that means 0.9% on the rate and added to the mortgage rate for the whole mortgage term, or for a specific period. It's very vague and may be nothing like the way my brain is seeing it.

missionfella

amnblog wrote: »

Jowie

You have no options now as there are no products.

If Halifax launch any products before you complete you may be able to take advantage and switch rate.

of course there is no guaranteeing you will pass credit score for 95% just because you did for 90%.

Isn't it the point that it would be considered an 80% because of the guarantee, or have I misunderstood the scheme? Perfectly possible I have...

amnblog

even 0.9% on the full loan on a 2 year product is far more than the MIG fees we used to see.

I suspect we will see a few more 95% products but no great deals or rate savings.

Let_Us_See

jowie wrote: »

. or if indeed I am too late?

Far too early, not even the government knows any details, let alone brokers. This is possibly a cynical knee jerk reaction to Labour's plan to maintain energy prices.......another pointless gesture!

Rumours abound, but don't expect too much. Now what was a MIG???????

amnblog

It's a Russian Military Jet

jowie

amnblog wrote: »

Jowie
You have no options now as there are no products.

If Halifax launch any products before you complete you may be able to take advantage and switch rate.

of course there is no guaranteeing you will pass credit score for 95% just because you did for 90%.

True... But it's worth a go. Estate agent told me they would be receiving deals through from lenders within the next few days.

jowie

missionfella wrote: »

Isn't it the point that it would be considered an 80% because of the guarantee, or have I misunderstood the scheme? Perfectly possible I have...

That's how I see it. I guess I'd have to pass two credit scores, one for the lender (which should be easier because I would be borrowing less) and one for the government.

jowie

Let_Us_See wrote: »

Far too early, not even the government knows any details, let alone brokers.

I got the impression that the lenders had already done the work and were just waiting to get going with the offers. But I could be wrong!