HTB MG - Will the rates be high?

stevied3268

Anyone know if the Help to buy scheme phase 2 will most likely give the select few lenders a chance to sting FTBs with higher rates? Im looking into it at the minute but the information is vague and Halifax dont have a clue about the scheme and yet apparently they are first to offer this scheme today according to the news...

kingstreet

4.5% to 5.5% would be my suggestion, similar to NewBuy rates as I've been banging on about for months now.

See the link I've just PMed you, RBS Group has announced its products today.

maas

Natwest boss just been on Sky News and said interest rate will be 4.49% 2-year fixed, but they will check that customers are able to pay 7% interest rate before authorising to ensure they can afford a potential interest rate increase.

lee111s

BBC is reporting 2 companies offering mortgages at 4.99% and another at 5.19%

Gordon_Hose

stevied3268 wrote: »

Halifax dont have a clue about the scheme and yet apparently they are first to offer this scheme today according to the news...

Yes, we spoke to them this morning and the woman was rude, saying they didn't know anything about it! :eek:

witchy1066

I do feel anyone who is thinking of applying for the HTB2 scheme should be given advise before they rush of to the banks to apply,

its not only the rates and affordability being taken into consideration

as some of the MB on here have implied, in other threads
its an important thing to mention , the criteria is going to be high, much higher than it is now ,

applicants will have to have squeaky clean credit reports , and I have heard through the grapevine those banks taking on the scheme who only use one credit agency at the moment will be looking at all 3

this of course is only speculation, the info given to me by an in bank MA , who has been told she will be working almost 24/7 for the foreseeable future

(good for her , all that overtime , in time for Xmas) :j

goody23

i am looking to get one of these mortgages ..i have 5% deposit and a good credit score and i live in london i need a bigger house and that is not gonna be cheap..

Typhoon2000

There are already 95% deals available before H2B. So these H2B deals either need to be easier to get or offer better rates for them to make any sense. I suspect they will be easier to get than regular 95% mortgages as there is less risk to the lender.

kingstreet

Typhoon2000 wrote: »

There are already 95% deals available before H2B. So these H2B deals either need to be easier to get or offer better rates for them to make any sense. I suspect they will be easier to get than regular 95% mortgages as there is less risk to the lender.

I think there will simply be more of them.

I don't see the need to offer lower rates and I don't see the need to relax criteria.

It takes months to get approval for a 95% mortgage from the lenders currently offering them. It may simply speed up the process if there are more lenders to choose from (eventually!).

witchy1066

Typhoon2000 wrote: »

There are already 95% deals available before H2B. So these H2B deals either need to be easier to get or offer better rates for them to make any sense. I suspect they will be easier to get than regular 95% mortgages as there is less risk to the lender.

personally and from what I have heard so for ,the criteria for HTB2 will be high, lenders will be choosy

basically all that will happen is more mortgages will be available on a 95% but and this is only my opinion,
banks will be limited by how much money in the pot (it will not be a bottomless pit) so with this in mind, they will be more cautious to who they lend to on 95%

I suspect they will scrutinise affordability and credit history

what could happen is they become a little more lenient with higher LTV ,(that would be nice) at 90% some lenders are reluctant and rather choosy who they lend to , the 80 to 90% might end up being able to get a mortgage were they have been declined in the past,

anyone who has recently been refused a 95% mortgage , will from what I have been told by a bank MA still be refused a 95% mortgage

but i have to say a lot of bank staff still are not up to date on the whole picture , so my comments are purely speculation,

I presume that is why some lenders are waiting a few more weeks before they jump on board ,
its a good idea to have the actual advisers know whats going on
:rotfl:

I do not work for any bank or lenders but have very close connection to someone who does, not that she knows any more than any of us do :rotfl:

witchy1066

kingstreet wrote: »

I think there will simply be more of them.

I don't see the need to offer lower rates and I don't see the need to relax criteria.

It takes months to get approval for a 95% mortgage from the lenders currently offering them. It may simply speed up the process if there are more lenders to choose from (eventually!).

you beat me to it , wish I could say what I meant in so few words , its an art I admire :rotfl: