HTB2 details released, initial mortgage rates from 4.99%

HAMISH_MCTAVISH

RBS and NatWest are offering a two-year, fixed-rate mortgage starting at 4.99% for those with a 5% deposit, with no fee

Halifax will be taking applications in a few days at a rate of 5.19% with a £995 fee for those with the same deposit.

HSBC said it would join the scheme later in the year, and Virgin Money said it would offer Help to Buy mortgages from January

As more lenders join the scheme and competition increases, I'd expect those rates to come down a wee bit, but actually not a bad start at 4.99% fee free.

It has reduced the rate from what is currently on offer. (But the real benefit will be a massive increase in availability)

The most competitive, widely available two-year fixed rate mortgage before Help to Buy, for those offering a 5% deposit has an interest rate of 5.95%, according to financial information service Moneyfacts.

And of course, The Treasury reiterated there is "no boom".

Treasury Secretary Danny Alexander told the BBC that there is no UK price boom.

"People who think that there's a housing bubble should get out more. They should get out of Kensington and Chelsea, and go to Manchester or Birmingham, and major towns across the country," he said.

He said the scheme would help those people to who do not have "piles of cash" for a mortgage deposit.

http://www.bbc.co.uk/news/business-24430010

:beer:

Loughton_Monkey

HAMISH_MCTAVISH wrote: »

....And of course, The Treasury reiterated there is "no boom".

"People who think that there's a housing bubble should get out more. They should get out of Kensington and Chelsea, and go to Manchester or Birmingham, and major towns across the country," he said

I just loved that bit.

chucky

Loughton_Monkey wrote: »

I just loved that bit.

So you're telling me that the one man crusade with all those new threads against Help to Buy was a waste of time and not actually true... Oh dear...

Quote:"People who think that there's a housing bubble should get out more. They should get out of Kensington and Chelsea, and go to Manchester or Birmingham, and major towns across the country," he said

shortchanged_2

I have no interest in the high speed rail link whatsoever.

Graham_Devon

Wow, Cameron has today, apparently, made dreams a reality!

the_flying_pig

HAMISH_MCTAVISH wrote: »

..."People who think that there's a housing bubble should get out more. They should get out of Kensington and Chelsea, and go to Manchester or Birmingham, and major towns across the country,"...

this does kind of beg the question why govt is then allowign the scheme to be used in Kensington and Chelsea [or indeed for houses that cost as much as £600k etc]

dryhat

the_flying_pig wrote: »

this does kind of beg the question why govt is then allowign the scheme to be used in Kensington and Chelsea [or indeed for houses that cost as much as £600k etc]

.. and the answer, quite obviously, is because this scheme has got nothing to with helping house buyers. It is about helping the bank.

michaels

the_flying_pig wrote: »

this does kind of beg the question why govt is then allowign the scheme to be used in Kensington and Chelsea [or indeed for houses that cost as much as £600k etc]

Sounds like a pretty rough ex la bit of the royal borough...

But in answer to the question of why 600k, it is not just FTBs who are short of equity, 2TBs who bought in the last 7 years and are now looking to move into family homes may also be 'embarassed' when it comes to deposits, especially those outside London where prices have fallen and if they can not move up then there is little scope for FTBs to buy - fairly obvious I would have thought. (And a 600k limit rather than 500k means lots more stamp duty for govt coffers:) )

Thrugelmir

michaels wrote: »

But in answer tot he question of why 600k, it is not just FTBs who are short of equity, 2TBs who bought in the last 7 years and are now looking to move into family homes may also be 'embarassed' when ti comes to deposits, especially those outside London where prices have fallen and if they can not move up then there is little scope for FTBs to buy - fairly obvious I would have thought. (And a 600k limit rather than 500k means lots more stamp duty for govt coffers:) )

Try finding at a lender who'll offer 95% LTV on £600k.

grizzly1911

HTB votes.
A scrooge Xmas one commentator said today. Relatively high rates.
Wonder why the non nationalised lenders are slower to jointhe bun fight?

mystic_trev

grizzly1911 wrote: »

HTB votes.
A scrooge Xmas one commentator said today. Relatively high rates.
Wonder why the non nationalised lenders are slower to jointhe bun fight?

Agreed. It doesn't bother me one way or the other, but I'd assumed the IR's were going to be a lot lower than these.

Edit - It looks like the media agree.

http://www.theguardian.com/money/blog/2013/oct/08/help-to-buy-house-prices

http://www.dailymail.co.uk/money/mortgageshome/article-2449507/Help-Buy-II-opens-business-cheaper-property-ladder.html

Martin Lewis, founder of consumer help website MoneySavingExpert.com, said while the deals were cheaper than existing 95% mortgages, they were still "very costly" compared with others with lower LTV deals.
For example, the Skipton Building Society is already offering a two-year fee-free deal with a 10% deposit at the much lower rate of 3.99% while those who have a 40% of a property's value can borrow for as little as 2% interest on other deals.

http://uk.news.yahoo.com/help-buy-enters-second-phase-233549546.html#0LdOxh1