Help To Buy Timebomb

amnblog

Our tax money has allowed your friend to buy a property at £178K which is worth £238K today with an investment of £8,900.

Are we tax payers are not entitled to our £12,000 share of the £60,000 profit?

brit1234

I just think it is crazy taking out 95% mortgages with the equity loans of help to buy in a housing bubble when interest rates are at a record low. Even scarier is 40% help to buy London. I'm sure they will be able to pay off the equity loan extra interest after 5 years on top of their mortgage.

What could possibly go wrong? No chance on the horizon of a British economic downturn or international economic downturn.

Tick, tick bomb!

If people can't be bothered to understand the risks of this on their biggest fiancial deal then they are reckless. I do think the government is deeply irresponsible for risking tax payers money and fueling another housing bubble with Help to buy.

Mummyto4kids

We are using the HTB equity loan scheme. We reserved our plot back in November, but are finally due to complete next week.


At the sales office when we went to look seriously at reserving they gave us info on the scheme. Then at the mortgage broker appointment, he came to the house, went through the information pack just as thoroughly as the mortgage application and made sure we got it. A further pack came in the post, another came from my solicitor who said "its probably a duplicate as you should have this but I need confirmation in writing that you understand the scheme" and then another load of info came (I think this was from HTB themselves) which detailed all the potential interest payment in 5 years time with different scenarios on it.


I really rated our broker, but even without him the info came from other sources, so its really hard to believe anyone has got into the scheme without realising that they have to pay a percentage back based on the value at the time of re-mortgage or sale.


No schemes going to be so good that you can only pay 80% of the value but then just repay what you borrowed - for us that would be an interest free loan of around £49k! But we went onto the scheme because its our dream house a few years earlier than we could afford and we have plans to overpay our mortgage and to have a savings account to pay back the equity loan. But we also realise that if prices go up then so does our repayment amount.


If there really are people who've bought a house without paying any attention to the HTB application then I am amazed because its the biggest purchase most of us ever make.

warwicktiger

So you are all saying the Gov't wont lend me money interest free so I can make a profit buying a house? wot a bunch of meanies, its a swiz !

csgohan4

OP wants their cake and eat it basically

ggaz1978

Thanks for all the feedback 1) my friends are numpties 2) broker could have done a better job ( we approached the same guy and never mentioned regarding h2b to us, 1 bad apple).

I never received the h2b pack as we felt it wasn't for us and never went that far with it.

It is still a very bad scheme though. :-D

pmartin86

I looked into HTB when I was purchasing...as a "normal" person about to part with 100 grand of cash, i read the f'king fine print and decided it wasn't for me. It's not a phone contract or a new sofa, anyone stupid enough to enter blindly without indepandant research deserves all the !!!! that comes their way as far as im concerned.