London help-to-buy scheme to launch in February

Jon_B_2

Graham_Devon wrote: »

£4.5bn (possible, maybe) profit is next to nothing when compared to the extra cost of housing benefits and tax credits which come as a result of increased rents (which is in part as a result of HTB which is widely accepted to have increased prices).

The housing benefit bill is rapidly approaching (probably past by now) £30bn per year. It has more than doubled in the last 10 years alone.

You can look at HTB in isolation to make a point but the money all comes from the same pot.

Edit: It's worth pointing out that that £4.5bn is calculated on the assumption that every single house bought under HTB is sold again within 5 years. Rather absurd assumptions going on if you ask me.

Your argument does not stack up.

I bought a house on HTB, but I left rented accommodation to do so. Therefore another property on the market to rent.

Without HTB, myself and many others would still in all likelihood be renting, houses would not be getting built as quick as they are now and rents coupled with current legislation on landlords would be going FAR higher than they are now.

Let's get it straight. House prices are a result of supply and demand.

There was so much demand pre-HTB for housing a whole generation of people between 21 and 35 years of age who had been stuck renting since 2008/9 unable to get on the ladder. We all had small 5% deposits (in my case a 5% deposit equated £14k + needed £5.5k for stamp duty and fees!!!), after scrimping whilst paying already large rents.

All IMO of course.

cells

mwpt wrote: »

You think 95% LTV with interest rate of 4% is not competitive?!!!

not compared to 95% LTV with interest rate of 2%

But its not just the interest rate. We need a return of self certified interest only mortgages with 10% down charged at no more than 1% over 'prime' mortgages. Or at the very least a hybrid where the first 5 years are interest only

mayonnaise

Jon_B wrote: »

Your argument does not stack up.

I bought a house on HTB, but I left rented accommodation to do so. Therefore another property on the market to rent.

Without HTB, myself and many others would still in all likelihood be renting

Congratulations Jon.

mwpt

cells wrote: »

not compared to 95% LTV with interest rate of 2%

But its not just the interest rate. We need a return of self certified interest only mortgages with 10% down charged at no more than 1% over 'prime' mortgages. Or at the very least a hybrid where the first 5 years are interest only

Why these figures? Why not make it even easier or cheaper? What happens when prices again become unaffordable for the same demographics a few years later?

Your solutions are part of the problem, in my opinion.

Graham_Devon

cells wrote: »

not compared to 95% LTV with interest rate of 2%

But its not just the interest rate. We need a return of self certified interest only mortgages with 10% down charged at no more than 1% over 'prime' mortgages. Or at the very least a hybrid where the first 5 years are interest only

Sounds like the crack of the mortgage world.