"help to buy schemes" too good to be true?

Thrugelmir

victoria1980x wrote: »

We don't want a new build as we want somewhere with a couple of acres.

Almost everybody dreams of such properties.

Trouble is borrowing £500,000 at a more normal interest rate of say 7% would result in a monthly outgoing of £3,500. Far beyond what most people can reasonably afford.

ethank

leveller2911 wrote: »

ethank wrote: »

I don't think thats quite right as we have a General Election next year and only the Conservatives have said they intend to extend it till 2020..

It has been extended already. Check http://www.bbc.co.uk/news/business-26611163

The Government has also entered into new contracts with HTB agents for an ongoing period.

The other parties would have to formally scrap the scheme, and given that it is supporting the biggest increase in housebuilding in years, and their would be significant closure costs to close it before the end of announced extension - I don't think anyone will be crazy enough to pull it - regardless of their pre-election position

victoria1980x

Thrugelmir wrote: »

Almost everybody dreams of such properties.

Trouble is borrowing £500,000 at a more normal interest rate of say 7% would result in a monthly outgoing of £3,500. Far beyond what most people can reasonably afford.

yes true, it's just with one horse on livery at ££ a month if we had him "at home" then the money we save on that could go into the mortgage.

leveller2911

ethank wrote: »

leveller2911 wrote: »

It has been extended already. Check http://www.bbc.co.uk/news/business-26611163

The Government has also entered into new contracts with HTB agents for an ongoing period.

The other parties would have to formally scrap the scheme, and given that it is supporting the biggest increase in housebuilding in years, and their would be significant closure costs to close it before the end of announced extension - I don't think anyone will be crazy enough to pull it - regardless of their pre-election position

Thats your opinion but the fact remains that only the Tories have said they would continue with the Scheme. Now given that the Housing bubble in many areas is causing great concern ,Mark Carney and even George Osborne (better late than never) would you bet your house on the Scheme remaining in 2018?.. If so I would take you up on that.

Your link is to a BBC story where the headline is " Housebuilders benefit from HTB" and their share prices have increased, no !!!! sherlock, Housebuilders have increased building houses where the buyers need state subsidies to buy them. Its not rocket scienece to see theres a problem. The Government is gambling with our money which may gain a return or may lose us money.

If we stick to facts rather than opinions (yours or mine) there is no guarantee the Scheme will be running after next years General Election.

If the Government of the day really want to make a difference then they should build low cost Social Housing and let the private Market find its true level and if that means hardship for a sizeable minority due to negative Equity then so be it but we need a stable housing market. The Goverments priority should be to act for the benefit of Society as a whole and this Scheme does nothing of the sort.

SuperHan

victoria1980x wrote: »

yes true, it's just with one horse on livery at ££ a month if we had him "at home" then the money we save on that could go into the mortgage.

From what I've heard, they do not account for savings that will be made when you move (e.g. less travel costs, cheaper child care) as I guess you may not actually save these costs - for all they know you will leave the horse on livery. So this extra saving will not count towards your affordability.

leveller2911

victoria1980x wrote: »

yes true, it's just with one horse on livery at ££ a month if we had him "at home" then the money we save on that could go into the mortgage.

Just a thought but if you need Government help to buy a house shouldn't you be prioritising your outgoings?...

victoria1980x

leveller2911 wrote: »

Just a thought but if you need Government help to buy a house shouldn't you be prioritising your outgoings?...

Just a thought for you I was asking about the scheme as I was hoping it may enable us to get a house with a bigger value not because we need "Government help to buy a house".

Others have kindly offered advice as I thought this could be a place to get feedback from those who have used the scheme. I was looking for someone to explain the scheme as they have done as I had clearly misunderstood it.

Keep your nasty snide remarks for someone who thinks you're relevant.

leveller2911

victoria1980x wrote: »

Just a thought for you I was asking about the scheme as I was hoping it may enable us to get a house with a bigger value not because we need "Government help to buy a house".

If thats the case then save up a larger deposit, buy a house you can afford and then either rely on HPI to help you buy a bigger house of save more money and buy a bigger house. Your looking into using the Scheme to enable you to buy a bigger house but then point out your low (compared to houseprice) deposit whilst at the same time owning a horse thats in livery. The cost of livery/vet fees etc would be in the region of £100 a week or £5k a year. This would add to your deposit, I'm not being nasty just questioning your priorities.



My post wasn't a personal attack on you more of an observation on your post. If you think it was nasty and snide then thats your opinion but it wasn't intended as such.

You don't have to go back many years to when people would make sacrifices to buy a home, now it seems some just want it all without putting in sacrifices.

Yates78

We purchased a new builder last November through the equity loan scheme. All is good HTB team and broker all useful and helped secure a good interest rate with Nationwide. We have plans in place to pay off the govt loan within 8 years so plan ahead.