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

kingstreet

jowie wrote: »

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.

No. It will not be viewed like an 80% mortgage because the borrower will still be responsible for repaying the whole loan, upto 95% if that's what they borrow.

No. There will not be two credit checks. The lender will decide who gets the mortgage and who doesn't based on its own credit scoring and status requirements.

The lender's activity will be overseen by UKAR (it runs NRAM, Mortgage Express etc) on behalf of the Government.

This is about a big fund to cover possible repossessions, not the Government getting involved in each individual mortgage.

Let_Us_See

jowie wrote: »

True... Estate agent told me they would be receiving deals through from lenders within the next few days.

Well, that's a relief, as we all know estate agents always tell the truth.

Thrugelmir

jowie wrote: »

or if indeed I am too late?

From my understanding no release of funds until January.

Fitzkepp

For what it's worth I just had a chat with L&C and asked the question about rates being better on a standard 90% LTV compared to a 95% LTV with HTP-MG, he said it's not an assumption he'd make and cited Halifax offering 3.04% as an example of HTB lenders.

It's an odd situation this one, as it leaves people with that quandry of whether there's a boat here that needs jumping on or be missed.

missionfella

kingstreet wrote: »

No. It will not be viewed like an 80% mortgage because the borrower will still be responsible for repaying the whole loan, upto 95% if that's what they borrow.

No. There will not be two credit checks. The lender will decide who gets the mortgage and who doesn't based on its own credit scoring and status requirements.

Makes sense, but then what is the advantage of this part of the scheme? The first part, new builds, is more straight forward.

Thrugelmir

missionfella wrote: »

Makes sense, but then what is the advantage of this part of the scheme?

Enables that can afford but don't have a sufficient deposit to buy a property. For example trapped in rental property. Therefore ability to save is limited.

The wider aim of the scheme is to increase the availablity of funds. A 90% mortgage requires a lender to hold 6 times the capital than that of a 60% LTV mortgage. Which results in a reluctance on the part of lenders to commit funds to higher LTV lending.

witchy1066

its only my humble opinion but I think the scheme could help some "mover uppers" who have little equity in their property giving them the chance to upgrade,

more of the FTB type houses would then be available as the mover uppers move up,

making more first time type property for those eager to get on the ladder,

a simplistic view I know , but I am a glass half full kind of person

kingstreet

Fitzkepp wrote: »

For what it's worth I just had a chat with L&C and asked the question about rates being better on a standard 90% LTV compared to a 95% LTV with HTP-MG, he said it's not an assumption he'd make and cited Halifax offering 3.04% as an example of HTB lenders

So, he cited an example of a HTB - Equity Loan rate to compare with a 95% mortgage.

Brilliant.

amnblog

Lets be clear here folks.

The Government is setting up a mechanism to remove the bulk of the risk from lenders on high loan to value mortgages.

What the lenders do with that is a matter for them in terms of pricing (result as yet unknown).

To meet the terms of the guarantee the lender has to be careful when underwriting applicants. Therefore as KS says you will not see more flexible underwriting.

National brokers quoting 3.04% rates which are not relevant and apply not to the H2B guarantee scheme but to the H2B equity loan scheme is not helpful.

Dave_Ham

We can all speculate, but the hard facts are until we see the specific products and mechanics we do not know.

Anyone who suggests otherwise can only be an Estate Agent...!

Good luck all