HTB Equity loan or wait for Housing and Planning Bill to Pass

JLMolloy

Hi All

I am new to the forum so not familiar with the same. I am just curious as to peoples thoughts on this.

I understand the HTB Equity loan currently available enables you finance 20% of the house value so as reduce the mortgage requirement. I further understand the loan is interest free for five years then begins to attract interest.

I further understand that as part of the Housing and Planning Bill the Government is planning to build new homes on Brownfield sites which will be sold at 80% of their value.

For anyone considering buying a new home currently it would seem to me you either take a HTB equity loan now for 20% of the property or you wait to see if the H+P Bill passes and wait for a house to be built and sold at 80% of the price.

Unless you are desperate to move in soon, surely it would make more long term sense to wait around to see what happens with this Bill? Or are people's concerns how long they will be waiting forever for the houses to be built?

I am currently in a Housing Association property and am in a real quandary as to what to do. It would seem to be sensible to wait around for the H+P bill to be debated since if passed that will enable me to either i) buy a new build at 80% of the value or ii) buy my existing property with a significant discount. However if my understanding of the circumstances are incorrect I guess it would be worth considering a HTB equity loan.

Thanks

MrJB

The biggest concern I would have is that the houses will be designated starter homes to enable savings through S106/CIL. So this will have to be done at planning stage, therefore lead times are probably 2 years+. It therefore depends on the capital growth, but undoubtedly bringing more properties to the market at 80% of the MV is going to have an impact on demand and as a result push prices up.

kingstreet

Unless the S106 Agreements are markedly different to now, you will have much less of a lending market available than exists for HTB EL.

On the S106 stuff we have at present, we're lucky if we can use three lenders. HTB EL has over fifteen.

JLMolloy

Thanks a lead time of 2 years is concerning.

With that said, if the H+P Bill will enable me to buy my housing association property at discount then it would seem worthwhile waiting around for that.

marksoton

JLMolloy wrote: »

.

With that said, if the H+P Bill will enable me to buy my housing association property at discount then it would seem worthwhile waiting around for that.

Let's hope not.