Help to buy

Crashy_Time

Southerner3000 wrote: »

What happens when you look to sell a house that was purchased through HTB but is now no longer a new build so your buyer doesn't have access to the 20% loan from the government? I assume you will be selling to another FTB?

You lose money, the scheme was designed to help banks and developers, not "hard working/borrowing" people.

SuboJvR

Why would the buyer be a FTB? They wouldn't...

I disagree: in the south east, buying a home would be impossible for us without HTB at this stage. We are hard working, we have saved and saved, but without HTB we wouldn't have been able to secure a mortgage as we really needed 75% LTV. Saving another 20% would have taken up to another 10 years for us whilst paying someone else's mortgage.

Obviously you risk losing value with a new build but if you research and have a plan you can mitigate this risk. For example, aim to stay put for a few years. Research the local area extensively. A similar house to ours is now on the market for £25k more than we reserved for three months ago. Our commuter train station will be getting additional services next year - this will also increase demand/values.

SuboJvR

Apologies - can't edit post on mobile. But I meant to say they wouldn't necessarily be. They may be of course but plenty of FTB buy non new builds.

Southerner3000

My point being generally FTB's buy starter homes. The likelihood of a 'second-stepper' buying these properties is low IMO. Most people move up the ladder not down.


Therefore if the benefit of a 20% loan by the government isn't available (either because non new build or withdrawn completely) then the house will be unaffordable by 20% to FTB's.


This is of course assuming the price remains the same & doesn't move up or down.

Crashy_Time

If the government pull the plug on HTB you will be left high and dry IMO, it wasn`t designed to help you.

SuboJvR

Southerner3000 wrote: »

My point being generally FTB's buy starter homes. The likelihood of a 'second-stepper' buying these properties is low IMO. Most people move up the ladder not down.

Therefore if the benefit of a 20% loan by the government isn't available (either because non new build or withdrawn completely) then the house will be unaffordable by 20% to FTB's.

This is of course assuming the price remains the same & doesn't move up or down.

Good point indeed, and one contributing factor as to why we have skipped the "starter homes" in our search as FTBs using Help to Buy. But we are hoping our house serves us for many happy years!