HTB interest free period is now up

Electrum

The USA have doubled their interest rates, and its going to carry on going up

The UK has only one direction to go, and its not down

westernpromise

Well, three directions: up, down, or sideways.

As the BoE has an inflation target and inflation isn't rising, sideways is looking good, as it has for ~9.5 years now.

Malthusian

Electrum wrote: »

The UK has only one direction to go, and its not down

In 2016 were you saying that there was only one direction for UK interest rates to go, and it wasn't up?

kingstreet

stingey wrote: »

I thought after buying and selling houses I was pretty clued up on mortgages, but this is just confusing. The HTB info is full of assumptions. How many people read their mortgage terms and conditions? And how many read this?

An extra £80 a month is a fair wack to pay on top of your normal monthly payment.
What happens if the value decreases? Does the payments still go up?

Another question. If the government has 20% equity in the property do they have 2nd charge?

I think the old saying is true, if you don't understand it and it's not simple enough, avoid

Apologies for not seeing this and not replying.

Unfortunately, I have no statistics on how many people read the HTB Buyer's Guide nor Personal Worked Example.

We issue the Guides three times during the enquiry to application process and the HTB Agent issues a further copy with the PWE. Further copies may be issued by solicitors.

A reduction in the property value reduces the amount of the loan which would have to be repaid on sale, at end of mortgage term or voluntarily. It wouldn't reduce the amount of the fee payments from year six onwards which are loan x 1.75% / 12 in that year.

Yes, a second charge is taken over the property.

Over the past year, we have seen many HTB clients take customer retention products from their existing lenders and remortgaging at lower rates than the mortgages arranged in 2013/2014. Some are repaying their HTB loans, others keeping them as they monitor property values in their areas.

Others have sold their property, repaid HTB and have moved to other newbuilds, some using HTB once again.

The number of lenders willing to accept a remortgage with the HTB equity loan left in-situ is growing and of course, those remortgaging to repay the HTB loan can do so in the "normal" remortgage market and we are seeing lenders offer higher LTVs for the purpose (eg Nationwide will usually only allow a remortgage upto 85%, but will offer upto 90% for a HTB loan consolidation remortgage.)

Lenders have been a little slow off the mark but it took some of them over a year to decide to join the scheme in the first place.

Biggest criticism seems to be aimed at Target the winner of the post-sales HTB/Shared Equity admin contract last time it was up for tender by the HCA. Service levels appear poor and charges for redemption high.

The-Joker

Graham_Devon wrote: »

Most HTB mortgages are around 3.5% - 4%

At the moment, but just wait for 6% plus....

then see the amount of people wanting to sell, or being forced to. but after they have sold they will still owe more then they sold for////