Government looks to sell HTB loan book

Graham_Devon

mayonnaise wrote: »

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

You would rather listen to paid adverts, than look at the Morgan Stanley report?

Adverts which the government have already been in trouble for when it was found out they made some of the case studies up?

mayonnaise

Graham_Devon wrote: »

You would rather listen to paid adverts, than look at the Morgan Stanley report?

Adverts which the government have already been in trouble for when it was found out they made some of the case studies up?

Okay Graham, you convinced me.
They're fictitious people and made up stories.
It's all a big government conspiracy.

Thrugelmir

Graham_Devon wrote: »

One term that has changed is that the government would not look to sell the loans.

Mortgages are bought and sold regularly. Makes no difference to the borrower who the ultimate owner is. Surely it's better that the taxpayer isn't underwriting these loans. When Northern Rock was nationalised (along with B&B) their mortgage book exceeded £100b. HTB is relatively insignificant in comparison. With UKAR still holding debt far in excess.

Graham_Devon

As I was saying....

https://www.thesun.co.uk/money/5862012/thousands-of-help-to-buy-mortgage-borrowers-trapped-due-to-lack-of-choice-and-high-fees/

michaels

This seems like a really interesting product for an investor. Am I right in thinking they own a share of the property rather than a fixed amount, this any buyr of the loan book would be able to buy/sell house price futures bu unbundling the credit risk from the house price risk?

Those looking to upsize or downsize in future might be very interested in being able to hedge against house price changes.