Cameron ready tp reconsider Help to Buy

Graham_Devon

The Prime Minister said the Government would lower the Help to Buy ceiling from £600,000 if requested to do so by the Bank of England.

The scheme allows people to buy houses with just five per cent deposits.

“We will consider any changes that are proposed by Mark Carney. But, as he said, this is a well-targeted scheme and it’s helped tens of thousands of people to get on the housing ladder and to have mortgages,” the Prime Minister said.

“Let’s be clear: these are people who want to own a flat or house of their own, they can afford a mortgage and they can afford these mortgage payments even if interest rates were to change; what they weren’t able to do was to get together the big deposit that was required because they were only able to get a 60% or 70% mortgage.”

Mr Cameron stressed it is Mr Carney’s responsibility to “call out any problems in our economy” and prevent the emergence of bubbles.

A commentator on the radio today (sorry, didn't catch their name) stated that while what Camerson states is factually correct, it misses the underlining issue that, effectively increasing peoples deposits is fueulling house price increases as it's made so many more options "affordable".

Without this, prices would have had to cater for the thousands of people who cannot raise the price asked.

Interesting to note that he will only do it if Carney asks him to, so the ball is firmly back in Carney's court.

Or in other words, the tories cannot therefore be blamed for anythiung. If it all goes wrong, it will be Carney's fault for not reigning it in. Though if he does reign it in, any reaction will also be his fault. Nice game. The second quote from the article is the biggest buck pass I've yet seen from the tories.

http://www.telegraph.co.uk/finance/personalfinance/houseprices/10843326/David-Cameron-ready-to-cut-back-Help-to-Buy-scheme-as-house-prices-rise.html

cepheus

I was going to post with this link. It implies he might limit it to £200,000. Clearly more sensible from a national viewpoint, but is that enough to win over the marginal seats?

David Cameron has opened the way to cutting the £600,000 threshold for the Government’s controversial mortgage scheme Help to Buy.
The Prime Minister said it had been right to launch the scheme with as few restrictions as possible – but it was clear the vast majority of people using it to buy homes are first-time buyers spending £200,000 or less.

CLAPTON

will such a restriction, increase the number of new builds or decrease them?

Carl31

Surely the sensible answer to this problem is a national house build?

The amount of time ànd effort that's put into social housing and benefits etc.. Wouldn't this be a much easier option?

Probably not a vote winner I suppose

Thrugelmir

Graham_Devon wrote: »

Or in other words, the tories cannot therefore be blamed for anythiung. If it all goes wrong, it will be Carney's fault for not reigning it in. Though if he does reign it in, any reaction will also be his fault. Nice game. The second quote from the article is the biggest buck pass I've yet seen from the tories.

There's no right or wrong. As with all fiscal decisions there's no certainty as to the outcome. What's required is a more cohesive policy. Rather than pulling a lever here and one there. BOE has the powers to control the banks now it needs to start doing so.

pbouk

Guy just on the news saying he recently bought with HTB and he says he would struggle if rates rise even a little. !!!!!!! why on earth have these fools bought a house if they would struggle to make payments with a small rate rise. I know everyone aspires to own their own home, but it's beyond belief how stupid folk can be.

CLAPTON

pbouk wrote: »

Guy just on the news saying he recently bought with HTB and he says he would struggle if rates rise even a little. !!!!!!! why on earth have these fools bought a house if they would struggle to make payments with a small rate rise. I know everyone aspires to own their own home, but it's beyond belief how stupid folk can be.

no, he said what the interviewer wanted him to say

and 'struggle' has an uncertain meaning as in 'we will now only have 2 foreign holidays' and will 'have to run our cars for more than 3 years' etc etc

ukcarper

CLAPTON wrote: »

no, he said what the interviewer wanted him to say

and 'struggle' has an uncertain meaning as in 'we will now only have 2 foreign holidays' and will 'have to run our cars for more than 3 years' etc etc

This is the thing struggle means one thing to some people and another to someone else. Struggling and not being able to cope are two different things.

Jason74

cepheus wrote: »

I was going to post with this link. It implies he might limit it to £200,000. Clearly more sensible from a national viewpoint, but is that enough to win over the marginal seats?

This would imho be a very good plan. If the idea is to help HTBs, this limit would be sufficient for most FTBs buying typical entry level properties outside London, while more or less ending the scheme within the capital.

Hard to see what's not to like about that idea.

CLAPTON

Jason74 wrote: »

This would imho be a very good plan. If the idea is to help HTBs, this limit would be sufficient for most FTBs buying typical entry level properties outside London, while more or less ending the scheme within the capital.

Hard to see what's not to like about that idea.

one wonders how many HTB mortgages are over 200,000

wymondham

CLAPTON wrote: »

one wonders how many HTB mortgages are over 200,000

is this info available anywhere does anyone know as it would be a good insight...