Government looks to sell HTB loan book

MobileSaver

Graham_Devon wrote: »

The terms have effectively already changed as the promise not to sell these loans to private equity companies is clearly being broken right now...

Was the "promise not to sell these loans" one of the terms of the loan contract that people signed up to or are you just scaremongering to support your own warped agenda?

Graham_Devon

It's a bit disappointing that all you have in response is personal attacks.

Sure it will go down well, but doesn't really do anything for the discussion, does it.

It's well known that I don't like HTB. However, this is news, it is being discussed elsewhere. If you don't wish to discuss it, fine. But whatever way you look at it, there are a lot of families who will now, quite rightly, fear what may happen to the "government backed" HTB and where they will stand.

What concerns me is the big push on HTB, the excess profits it's created for housebuilders and donors of the tory party, and the, possible, nagative impact all this may have to those holding the loans in 5 years time.

We've seen enough from people negatively effected by the leasehold issues on new builds in recent times. But that was all good too, until it wasn't....

MobileSaver

MobileSaver wrote: »

Was the "promise not to sell these loans" one of the terms of the loan contract that people signed up to?

Graham_Devon wrote: »

It's a bit disappointing that all you have in response is personal attacks.

It's disappointing but not surprising that you would avoid answering that question. One can only assume that such a promise was not part of the loan contract and that you were in fact scaremongering?

Graham_Devon

MobileSaver wrote: »

It's disappointing but not surprising that you would avoid answering that question. One can only assume that such a promise was not part of the loan contract and that you were in fact scaremongering?

Such a statement would never ever be in a mortgage contract, so I don't see the point in the rather stupid hypothetical question.

Mistermeaner

Really don't know what you're talking about graham; not a personal attack on you its just that you are idly speculating about something which won't happen (changes in terms) so don't know what the issue is?

mayonnaise

Graham_Devon wrote: »

We've seen enough from people negatively effected by the leasehold issues on new builds in recent times. But that was all good too, until it wasn't....

Different issue. (not trying to personally attack you by the way)
I'd agree with you that some recent leasehold contracts are a plain rip off solely aimed at lining the pockets of future freeholders, but that's separate from HTB.

MobileSaver

Graham_Devon wrote: »

So let's not pretend loan terms can't change. ... The terms have effectively already changed as the promise not to sell these loans

Graham_Devon wrote: »

Such a statement would never ever be in a mortgage contract,

Exactly! So your scaremongering about terms already changing was simply fake news to support your prejudice against HTB.

mayonnaise

Now we've determined that the selling of the loan book is a non-issue, it's worth pointing out what a success the scheme has been.

In total, more than 350,000 people have now used the Help to Buy schemes to purchase a property.

“Thanks to our Help to Buy: Equity Loan scheme the dream of home ownership continues to become a reality for thousands more households across the country.”

https://www.mortgagestrategy.co.uk/help-buy-equity-loan-scheme-set-record-year/

Graham_Devon

Or how about a real review of HTB? I.e. not the government congratulating itself...

Morgan Stanley:

But the Morgan Stanley report, headlined "The help to buy premium " and its unintended consequences, drily unpicks the data, revealing how the beneficiaries have been the major developers. Researchers compared the price of new-build houses in 2013, when the scheme began, with the price of existing or "second-hand" houses.

There has always been a small premium for new-build; people will pay extra for spanking-new kitchens and bathrooms. But since 2013, that premium has rocketed. The divergence between new-build and second-hand prices is higher than it's been since records began, says the report.

It says that the price of new-build has outstripped second-hand by 15% since the start of help to buy. We are now around 5% points away from the level at which new-build prices have diverged by the full amount of the government's equity loan (20% of house price across England).

https://www.theguardian.com/money/blog/2017/oct/21/help-to-buy-property-new-build-price-rise

mayonnaise

Graham_Devon wrote: »

Or how about a real review of HTB? I.e. not the government congratulating itself...

Morgan Stanley:


https://www.theguardian.com/money/blog/2017/oct/21/help-to-buy-property-new-build-price-rise

Of course Help to Buy has boosted housebuilders' profits.
If it dented their profits they wouldn't be participating, wouldn't they? It's called an incentive.

But instead of reading a Guardian article, desperate to criticise government policy, I'd rather lend an ear to people actually affected.
Those using the scheme.
Here are some of their stories: https://www.helptobuyese.org.uk/more-information/customer-stories