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

kingstreet

A new guide just provided by L&G Mortgage Club;-

http://yournews-legalandgeneral.com/pv_obj_cache/pv_obj_id_BB320F8298FC1120B8826B44DE0AD12E294C0800/filename/Help%20to%20Buy%20Definition%20Budget%202013.pdf

tasty_snacks

Wait for the dust to settle on this one and for lenders to drip onto the market. I think the majority of lenders have been caught on the hop.

Provided the rates are sensible, the wife and I will be taking full advantage of H2B - MG, though it still seems as though we have to wait until January to actually complete on any purchase.

ItsyBitsySpider

Please correct me if I am wrong.

From the buyer's perspective:

1. Help to buy- phase 2 is just like a normal mortgage product offering LTV of 95% but the interest rate would be less than the regular non-help-to-buy 95% LTV products available in the market at the moment. There is no interest free loan for the buyer from the government.
   
2. The lenders would have to fulfill a stricter credit history criteria to offer anything on this scheme. The criteria would be stricter as compared to the usual 95% LTV products available in the market.
   
3. It is called help to buy as the government has provided insurance for these relatively low interest rate 95% LTV mortgages for which it will charge the lender a certain fee, not exactly known yet. As a result a help to buy 95% LTV mortgage may be a bit more expensive than the regular 90% LTV but would have an interest rate lower than the regular 95% mortgages available right now.
   

amnblog

tasty_snacks wrote: »

seems as though we have to wait until January to actually complete on any purchase.

that is currently correct

amnblog

ItsyBitsySpider wrote: »

Please correct me if I am wrong.

From the buyer's perspective:

1. Help to buy- phase 2 is just like a normal mortgage product offering LTV of 95% but the interest rate would be less than the regular non-help-to-buy 95% LTV products available in the market at the moment. There is no interest free loan for the buyer from the government.
   
2. The lenders would have to fulfill a stricter credit history criteria to offer anything on this scheme. The criteria would be stricter as compared to the usual 95% LTV products available in the market.
   
3. It is called help to buy as the government has provided insurance for these relatively low interest rate 95% LTV mortgages for which it will charge the lender a certain fee, not exactly known yet. As a result a help to buy 95% LTV mortgage may be a bit more expensive than the regular 90% LTV but would have an interest rate lower than the regular 95% mortgages available right now.
   

1. LTV's from 80% to 95% - no interest free equity loan on phase 2

2. We don't know yet, the 95% criteria is already very strict. There is a definite clause that the scheme is not for impaired credit borrowers.

3. It should be called help to lend without risk as it helps the lenders not the buyers. Buyers may benefit from it being a better business deal for the lenders.

We don't know what the rates will look like yet.

Thrugelmir

ItsyBitsySpider wrote: »

Help to buy- phase 2 is just like a normal mortgage product offering LTV of 95% but the interest rate would be less than the regular non-help-to-buy 95% LTV products available in the market at the moment.

The issue is with the lenders not the borrowers.The Government's aim I suspect is not looking to make "cheap" funds available. More to increase the amount of funding that lenders will commit to higher LTV advances.

mr_cool

amnblog wrote: »

that is currently correct

Where are you getting this information please?

kingstreet

mr_cool wrote: »

Where are you getting this information please?

Earliest completion January 2014?

It's all over the news.

http://www.moneysavingexpert.com/news/mortgages/2013/09/qa-help-to-buy-95-mortgage-launch-brought-forward-by-government

Q. When does it start?

A. The first lot of these deals should be available from next week but none of the lenders who have signed up to the scheme so far have released a date. Once you apply for a mortgage you can complete the purchase in the same time-frame as a standard mortgage, but the guarantee only kicks in on 1 January.

However, that's a arbitrary date as it would be virtually impossible to fall into arrears and have your home repossessed for a mortgage where you've not even started the application by early October.

amnblog

mr_cool wrote: »

Where are you getting this information please?

if they were doing a radio advert, that would be the bit they read out at 4X speed at the end.

your mortgage guarantee mortgage funds can be arranged from October 2013 but cannot be drawdown until the guarantees are actually in place which is in January 2014. However, rather than wait till you could actually use the scheme we decided to announce we had brought it forward in order make ourselves look good during our party conference. Any loss or distress caused by funds not being available when you think they are are, will not be the responsibility of the government, nor the conservative party, nor Dave, George, Nick, Vince, or even Boris.

witchy1066

amnblog wrote: »

if they were doing a radio advert, that would be the bit they read out at 4X speed at the end.

your mortgage guarantee mortgage funds can be arranged from October 2013 but cannot be drawdown until the guarantees are actually in place which is in January 2014. However, rather than wait till you could actually use the scheme we decided to announce we had brought it forward in order make ourselves look good during our party conference. Any loss or distress caused by funds not being available when you think they are are, will not be the responsibility of the government, nor the conservative party, nor Dave, George, Nick, Vince, or even Boris.

:rotfl::rotfl::rotfl::rotfl::rotfl:funny thought I had read that between the lines somewhere