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Help-To-Buy Three Months Early: Any takers?
Comments
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Disappointed with some of the details here.
Surely if the Government is backing the mortgages then we should get the 80% rates and not 95%.MBNA CC: -£8390
Father-in-law loan: -£4500
Student loans: -£17,120
Total debt: -£30,010 :mad:0 -
If it mirrors rates for NewBuy, they are 80% to 85% type rates, at 4% to 4.5%.makes_cents wrote: »Disappointed with some of the details here.
Surely if the Government is backing the mortgages then we should get the 80% rates and not 95%.
The guarantee has to be paid for.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »If it mirrors rates for NewBuy, they are 80% to 85% type rates, at 4% to 4.5%.
The guarantee has to be paid for.
That's slightly better than what I was assuming which was 5%+
I guess we will have to wait for all the details before we know for sure.MBNA CC: -£8390
Father-in-law loan: -£4500
Student loans: -£17,120
Total debt: -£30,010 :mad:0 -
Yes.
5%+ would be the usual rate for a standard 95% product.
NewBuy products are based on a similar guarantee provided by the Government and funded by the builder/lender. These are lower rated as a result.
With no 3% builder contribution, the rate for a HTB-MG 95% product may be a little higher, but maybe not.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »With no 3% builder contribution, the rate for a HTB-MG 95% product may be a little higher, but maybe not.
The 3% is paid as a lump sum upfront. Whereas the new scheme most likely will be in the form of a monthly levy built into the product's interest rate.0 -
kingstreet wrote: »So, he cited an example of a HTB - Equity Loan rate to compare with a 95% mortgage.
Brilliant.
Don't shoot the messenger.0 -
I didn't.
My criticism was purely aimed at the source, not the messenger.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Is it a general apathy towards L&C or specific towards that particular quote from them?
Reason I ask is they get a very good "write up" in the buyers guides on this site, so it's interesting to see if the practical experience is less shining.0 -
It was the specific comment.
There's a total lack of knowledge about Help To Buy and suggesting a product available on Equity Loan will be the same product for Mortgage Guarantee smacks of lack of knowledge, lack of experience or both...
Either way, it's not the kind of throwaway comment to be made to a client, IMHO of course.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Fair enough. I think I caught him on the hop slightly as the entire conversation hadn't covered HTB, and I sprung it on him at the end.0
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