Help to Buy - Part Deux?

darkvader

andrewmp wrote: »

I'm chilled, didn't mean offence. It's just worries me when 5% is seen as high, if/when rates rise people could be in a mess.

I think when that time comes everything is rise in relation as well - better deposit rates and finally some salary increases to cushion the rise - I cannot see a rise to 7% without everything else that must go up not going up - just like the old days of decent salary raises and good ISA/deposit rates

DV

Gordon_Hose

andrewmp wrote: »

I'm chilled, didn't mean offence. It's just worries me when 5% is seen as high, if/when rates rise people could be in a mess.

I agree with you. I could afford £900 a month, I could afford it if rates rise, but with a toddler and potentially more children we want a life as well!

After today I just don't see how HTB2 is actually helping anyone. If anything it's going to make things worse for me if house prices rise, I'll be constantly needing to increase my deposit.

andrewmp

Gordon_Hose wrote: »

I agree with you. I could afford £900 a month, I could afford it if rates rise, but with a toddler and potentially more children we want a life as well!

After today I just don't see how HTB2 is actually helping anyone. If anything it's going to make things worse for me if house prices rise, I'll be constantly needing to increase my deposit.

I suppose a five year fix will allow people to budget for a reasonably long period of time.

Gordon_Hose

For £900 a month I could go and rent a large 3 bed house in a desirable area of town lol!

At the moment £160k will get me a half decent 2 bed terrace.

brit1234

For myself (London) its high house prices that is stopping me buy not the deposit.

Help to buy will fuel house prices upwards, I just hope the lending criteria is very tight. I don't fancy billions of tax payers money being wasted when this scheme goes wrong.

andrewmp

Gordon_Hose wrote: »

For £900 a month I could go and rent a large 3 bed house in a desirable area of town lol!

At the moment £160k will get me a half decent 2 bed terrace.

The big North South divide. You can get a three bed house for about £75k here!

witchy1066

all this talk about % and rates but not one mention about the actual property one is hoping to get this 95% on

no lender is going to risk lending 95% on a property that is priced near or the top of its value if it needs a lot of money spending to bring it to a good investment,

that is how house prices will be stopped from rocketing

can someone in the mortgage/property business come along and explain this better than I can please,

I do feel because of my own experience, this is a valid issue for debate

perhaps someone with experience could start another thread ,

someone only having a 5% deposit and high hopes need to know that the deposit is only half the battle

and sellers who are hoping the market will start to move again in their areas need to be aware of what is expected of the property if they are hoping to sell quickly and for a good price,


sorry about the ramble but for the sake of our vender spending a couple of hundred pounds (before he marketed his house) on something he knew would come up on the survey, its taken not only expense but weeks of delay for reports and specialist surveys before our lenders would consider offering us a mortgage on the property and we are 80% LTV

Thrugelmir

darkvader wrote: »

k into the market

I'd rather pay a premium and get a new build property by taking out a 65% mortgage (with the govt paying 20% and me paying 15%) on 2.5%

In which case you have no need of this new scheme in any event.

The aim of HTB 2 is to help people who couldn't otherwise get on the property ladder to do so. There's no frills, no gimmicks just old fashioned lending policy. In years gone by insurance companies underwrote the guarantees. For any loan above 75% LTV.

Thrugelmir

maas wrote: »

natwest have already said they are checking to ensure customers can afford 7% interest payments before approving any of these mortgages which are priced around 5% mark.

I think if you earn a lot of money relative to the house you want to purchase, have a squeaky clean credit record but simply dont have the 10% deposit then this scheme will work for you. But if you're on the breadline of affordability then you wont get it.

Next April there's further mandatory regulation coming into effect which place the onus firmly on lenders to check affordability. Hence the tightening already.