Boris announcement on new deposit scheme?

Jsutherland7

Great debate guys great debate!

lets see what comes of this.. yes 5 percent is a good deal in my opinion but I’ve lived in London my whole life and I’m not prepared to move i
know these streets like the back of my hands and have family memories I’m not willing to leave behind!

the problem is help to buy is capped at a certain value price! I.e I’ve seen some decent homes for 6500000 which I would need a 34,000 roughly which is still a push for me!

Also if it was on older builds it would help a lot but I guess that’s not possible!

i won’t give in though and I will continue to save and eventually get a mortgage in London 

Gycraig

Comms69 said:

Gycraig said:

It’s quite obvious when I said “current scheme” I meant the one that the thread is talking about ...

feel free to enlighten me on how renting someone else house and paying someone else’s mortgage for another year is a safer option

If you lose your job, you aren't going to face a repossession which will ultimately destroy your credit history. Additionally you wont be liable for any massive repairs that may come up e.g. new roof. You also arent tied down in an unstable economic climate to a single area... But you know that's looking at the bigger picture

The ccj I would get for not paying my rent / not being able to pay my rent would also cripple me for 6 years. 

You say unstable job market, it’s constantly been an unstable job market, there’s always a boogey man round the corner, don’t buy until brexit is done, don’t buy until Covid is done. 

The things mentioned would still be pretty sucky whether I put 5-10-15% deposit down as well. I paid 10 percent and have savings and would still be pretty fked if I had to buy a new roof. 

There is constantly a reason not to buy houses, yet the prices keep rising. 

csgohan4

if you cannot save money when your renting, your not ready to buy a house. Repairs, maintenance are not cheap. A new boiler is a few thousands for example. 

tim_london

csgohan4 said:

if you cannot save money when your renting, your not ready to buy a house. Repairs, maintenance are not cheap. A new boiler is a few thousands for example. 

Depends on circumstances.  A 3-bed rental in London is £1500p/m.  That’s enough for 25year mortgage for a £500k house.  At 5% mortgage, once you’re on the housing ladder you’ll have 75-85% equity in about 5 years.  This is possible with equity loan because you can unlock the lower interest rates.

How is saving a few hundred here and there under the whim of a landlord better?  Or you can wait a few years until you have 10-15% deposit and pay double the interest rate...

Crashy_Time

greatcrested said:

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.

Good advice, anything Boris announces will be to benefit bankers and developers, not ordinary people.

Crashy_Time

Comms69 said:

Gycraig said:

It’s quite obvious when I said “current scheme” I meant the one that the thread is talking about ...

feel free to enlighten me on how renting someone else house and paying someone else’s mortgage for another year is a safer option

If you lose your job, you aren't going to face a repossession which will ultimately destroy your credit history. Additionally you wont be liable for any massive repairs that may come up e.g. new roof. You also arent tied down in an unstable economic climate to a single area... But you know that's looking at the bigger picture

Good points.

MobileSaver

Comms69 said:

Maybe the state just shouldn't intervene in private businesses? 

Most sane, rational people realise the country would really be in a mess if the state hadn't "intervened in private businesses" during the pandemic.

MobileSaver

Comms69 said:

you wont be liable for any massive repairs that may come up e.g. new roof.

csgohan4 said:

Repairs, maintenance are not cheap. A new boiler is a few thousands for example. 

While these are common scare tactics amongst the HPC crowd, in 30 years of home ownership I have never had to buy a new roof or a new boiler. It does make you wonder why the HPC zealots are so keen to buy if all they can look forward to is repair bills of thousands or tens of thousands of pounds...

In the interests of transparency, I do know that my brother-in-law mentioned in passing he's had a new boiler installed, apparently it was completely free thanks to government grants!

Comms69

tim_london said:

Comms69 said:

Gycraig said:

It’s quite obvious when I said “current scheme” I meant the one that the thread is talking about ...

feel free to enlighten me on how renting someone else house and paying someone else’s mortgage for another year is a safer option

If you lose your job, you aren't going to face a repossession which will ultimately destroy your credit history.
Not keeping up with rent is also disaster to credit report - either way that's a mark for 6 years.
Additionally you wont be liable for any massive repairs that may come up e.g. new roof.
What about liability of being kicked out on a whim of landlord or rent increase?
You also arent tied down in an unstable economic climate to a single area... But you know that's looking at the bigger picture.  Stability of owning a home is not bigger picture?

Look - I would agree it was pre 80s, council house and fallback to housing benefit.  But not today with private rental situation especially with big cities.  I would love to see a govt bring that time back but it ain't happening.

It may benefit only a small % of people, most likely those above average wage.  But it does help.

in order of your points: 
The reality is, if you are unable to pay your rent, the total cost is a month's rent. And you arent tied down to the area. If the landlord takes you to court for lost rent, the amount is minimal and easily settled. 

You cant be kicked out on a whim. Nor can rent simply be increased. So these are just false.

You call it stability, i call it an anchor around your neck (at 95% LTV)

Comms69

Gycraig said:

Comms69 said:

Gycraig said:

It’s quite obvious when I said “current scheme” I meant the one that the thread is talking about ...

feel free to enlighten me on how renting someone else house and paying someone else’s mortgage for another year is a safer option

If you lose your job, you aren't going to face a repossession which will ultimately destroy your credit history. Additionally you wont be liable for any massive repairs that may come up e.g. new roof. You also arent tied down in an unstable economic climate to a single area... But you know that's looking at the bigger picture

The ccj I would get for not paying my rent / not being able to pay my rent would also cripple me for 6 years. - What CCJ? The max amount is 1 months rent assuming you take steps to rectify the situation. 

You say unstable job market, it’s constantly been an unstable job market, there’s always a boogey man round the corner, don’t buy until brexit is done, don’t buy until Covid is done. - Sorry but that's just silly. 10% of the workforce will be unemployed with-in 3-4 months. That's a catastrophe, not because of Covid. but because of lockdown. 

The things mentioned would still be pretty sucky whether I put 5-10-15% deposit down as well. I paid 10 percent and have savings and would still be pretty fked if I had to buy a new roof. - Perhaps, but the monthly payments would be less and therefore more manageable. That said, if you rent the state will pay you an element of housing benefit. 

There is constantly a reason not to buy houses, yet the prices keep rising. 

They do at present. Just wait until people's savings are gone