"Calls" to help HTB mortgage prisioners

Rich2808

Graham_Devon wrote: »

That was an interesting bonus - but more interesting is the total bonus pot for the year - £500m.

While it's a private company and they are free to do what they wish - it does water down every excuse the building industry wheels in to the room when the question of price comes up.

Clearly, to be able to give half a billion out in profits in one single year to 140 staff (note, none of the actual people on the ground doing the actual work), AND £1.9bn to shareholders, the company is doing very well thank you very much on the back of high house prices and rationing builds.

Persimmon left an area very near me without the promised GP surgery, without the promised play area (unless you call space the size of the footprint of a 2 bed house with a log in it a play park), and without the promised Primary School. They simply paid the £80k fine and walked away, to the next site, 2 miles away.

While this story has fault on two sides, council and Persimmon, it does irk me somewhat that the people choosing to practice business in such a way, leaving all their customers without the promised amenities, can then hand out £0.5bn in bonuses in a single year.

On the bonus though, Persimmon would probably claim the taxpayer didn't pay a penny towards it. Afterall, they shafted their own shareholders by diluting their shares by the same amount to give this boss his bonus!

I'm just a single voice though, it seems very few people care, until they have been stung.

Perhaps the Government should introduce a 40% interest free loan for five years to buy flat screen televisions, high end cars, round the world cruises – so people can ‘afford’ to pay 40% more for these goods? I expect the flat screen telly, car and travel industry would see their turnover and profits rise rapidly along with the bonuses for their Directors and shareholders.

If this was done for any other industry bar housing people would say it was crazy!

PasturesNew

This was inevitable - any scheme sucks people in - who don't know what they're up for ... and with an attitude that "it'll be all right.... 5 years is a lifetime away". Well, 5 years is no time at all, it whizzes by .... and the world isn't made up of cute kittens where everything's all right in the end.

kinger101

Asking the government to help is in reality asking for the taxpayer to sort it out. I think there are bigger priorities. NHS. Defence. Education. National Debt.

Graham_Devon

kinger101 wrote: »

Asking the government to help is in reality asking for the taxpayer to sort it out. I think there are bigger priorities. NHS. Defence. Education. National Debt.

I thought that when they announced the idiotic scheme.

kinger101

Graham_Devon wrote: »

I thought that when they announced the idiotic scheme.

Once upon a time, I'd have expected palms to have been greased for the scheme to be implemented. But the reality probably is no money needs to change hands to pull strings these days. Just massage the ego of whatever power-crazed idiot happens to be government at the time.

Rich2808

kinger101 wrote: »

Once upon a time, I'd have expected palms to have been greased for the scheme to be implemented. But the reality probably is no money needs to change hands to pull strings these days. Just massage the ego of whatever power-crazed idiot happens to be government at the time.

Once upon a time - in 2011. And not long after we got help to buy and a happy ever after for the big house builders and developers!
https://www.telegraph.co.uk/news/earth/hands-off-our-land/8754027/Conservatives-given-millions-by-property-developers.html

Thrugelmir

Rich2808 wrote: »

Doesn't entirely help when the price of the property you bought was inflated by 20% thanks to help to buy.

Lenders wouldn't advance the money for mortgages if that was the case. The price of Apple phones is inflated. People have a choice as to what they buy and how much they borrow.

Graham_Devon

Thrugelmir wrote: »

Lenders wouldn't advance the money for mortgages if that was the case. The price of Apple phones is inflated. People have a choice as to what they buy and how much they borrow.

Just one point - the lenders are somewhat protected under HTB. That's the whole point of it..... help the builders by giving the buyer a government loan in order to get the mortgage they otherwise may not have been able to.

ChopperST

We live on a new build estate that is now 5 years old. Neighbours that have become friends have come to me knowing my MSE traits asking for advice on remortgaging. Many of them have been sold the help to buy mortgages and are now approaching the repayment plus interest period.

For many of our friends this has also coincided with the wife / girlfriend reducing hours to go part time for childcare reasons, meaning some of them are stuck with their original mortgage provider's SVR as the reduced household income and the implications of the HTB repayment mean they cannot remortgage with a new provider due to affordability (further compounded by having 1 or 2 dependants where 5 years ago there were none). Some have been fortunate due to HPI but should HPI turn negative those new to the scheme could seem a double or triple whammy.

Grezz24

as a FTB about to use the HTB i am fully aware of what the costs are involved, i have seen a full breakdown of what i will potentially pay in year 6 onwards and we are planning on saving to buy out the 20% as soon as we can.

Anyone who goes into the HTB without knowing what the costs are and how they will look when the interest hits is crazy.

You should work out if you can afford to pay the mortgage on the standard rate + interest on the HTB before you go ahead - its put black and white in front of you so there should be no shouts of miss selling.