Boris announcement on new deposit scheme?

Jsutherland7

Hi guys hope your all well,
just wanted to bring up this new story on a new 5% deposit scheme that boris spoke briefly
on last week!
what I don’t quite understand is that with had the “5% deposit” deal for a long time now so don’t understand what’s so great about this new up and coming scheme? also they keep saying Help to buy is for first time buyers only NOW although it’s been advertised as that since it started!! I don’t quite understand what there trying to bring to the table yet! I guess we will find out soon.
My worry is that although 5 percent is a good deal, for us Londoners 5% can still
seem like a saving of 40k to 80k which is impossible in the short term,
Any info on this new scheme would be amazing thanks guys enjoy your day 

grumiofoundation

Help to buy equity loan scheme was not for first time buyers only. (Maybe you are thinking of Help to buy ISA?).

For a 5% deposit you don’t need 40-80k (also this isn’t ‘impossible’ for a lot of people). 

A 40k deposit at 5% is a 800k property 
80k is 1.6M, even in London you can get a property far cheaper than this! 

Unsurprisingly actual details are the proposed scheme are thin on the ground. 

Comms69

The govt has zero say in this. Frankly anyone buying with a 95% mortgage needs their head examining. 

[Deleted User]

The government will most likely turn it in to a mortgage guarantee scheme to protect the lenders from losing money if reposessing in a depressed housing market.  We had this for many years after the financial crash and it worked well enough then to be brought back in a similar way.   Cant see anything happening this year about it though.  Will probably time it with stamp duty cut finishing to stop the market falling off a cliff

Slappermum

Comms69 said:

The govt has zero say in this. Frankly anyone buying with a 95% mortgage needs their head examining. 

We completed with a 95% mortgage at the end of June 2019. Our monthly instalment is £100 than our rent was. A combination of overpayments and property price increases has our LTV close to 85% now, might get to 80% by the time we remortgage/renew (especially if we add some extra from the emergency fund). My head is fine, thank you.

Comms69

Slappermum said:

Comms69 said:

The govt has zero say in this. Frankly anyone buying with a 95% mortgage needs their head examining. 

We completed with a 95% mortgage at the end of June 2019. Our monthly instalment is £100 than our rent was. A combination of overpayments and property price increases has our LTV close to 85% now, might get to 80% by the time we remortgage/renew (especially if we add some extra from the emergency fund). My head is fine, thank you.

Your anecdotal experience is irrelevant to the current situation, with 10% of working people expected to be unemployed in 4 months.... 

greatcrested

Slappermum said:

Comms69 said:

The govt has zero say in this. Frankly anyone buying with a 95% mortgage needs their head examining. 

We completed with a 95% mortgage at the end of June 2019. Our monthly instalment is £100 than our rent was. A combination of overpayments and property price increases has our LTV close to 85% now, might get to 80% by the time we remortgage/renew (especially if we add some extra from the emergency fund). My head is fine, thank you.

Glad it's working out for you, but the risks are real for some people.

Suppose the property market crashed (Covid effect? Brexit? other unknowns?) then your LTV would go the other way!

Suppose you lost your job(s)? No more 'over payments'.

It was the 100% mortgages in the last financial crash that left people in crisis - unable to pay and unable to sell. 95% is taking a real gamble. Just because for you, at present, it's working out, does not mean it is not a huge potential gamble.

theartfullodger

More b*ll*cks and l*es from Bozo the clown.

Slappermum

Comms69 said:

Your anecdotal experience is irrelevant to the current situation, with 10% of working people expected to be unemployed in 4 months.... 

I would say my anecdotal experience is relevant in the face of your sweeping "anyone who does it should have their head examined" generalisation. We are both fortunate enough to not have our jobs under threat in these circumstances. Getting a mortgage is a calculated risk.

spoovy

Jsutherland7 said:

what I don’t quite understand is that with had the “5% deposit” deal for a long time now so don’t understand what’s so great about this new up and coming scheme?

Nothing.  Nothing will be great about this up and coming scheme, whatever form it takes.  It will just be another way of enriching tory donors and tory voters at the expense of the young and poor.   And people will fall for it again too, as they always do. 

Wow aren't we lucky Help 2 Buy exists so we can borrow enough to buy a house! (not understanding that without H2B you wouldn't need to borrow all that extra cash in the first place because the house would be cheaper).
Wow aren't we grateful for the extra cash from the stamp duty holiday! (not understanding that the house you're looking to buy just shot up in price by the exact amount you believe that you are "saving", as a direct result of the SDLT holiday).

Every time you see them ostensibly throwing money at buyers, they are really throwing it at sellers. Every single time.

Comms69

Slappermum said:

Comms69 said:

Your anecdotal experience is irrelevant to the current situation, with 10% of working people expected to be unemployed in 4 months.... 

I would say my anecdotal experience is relevant in the face of your sweeping "anyone who does it should have their head examined" generalisation. We are both fortunate enough to not have our jobs under threat in these circumstances. Getting a mortgage is a calculated risk.

I stand by my statement. Glad it's worked out for you