95% mortgages

James-may

I can't understand why they haven't just opened up the htb scheme from new builds to all builds.
As someone who has never purchased before and knows little about the property market, that would seem like a far simpler solution.
Just widen the existing schemes scope.
But it looks like a wishy washy scheme has been thought up, full of its, buts and maybes.
Hope it works though, I'm looking to buy with 5% deposit myself in a couple months.

lonibra

Why do you think it's wishy washy? Imho the govt mortgage guarantee is a far simpler one to understand, implement and maintain than the govt equity loan.

James-may

lonibra said:

Why do you think it's wishy washy? Imho the govt mortgage guarantee is a far simpler one to understand, implement and maintain than the govt equity loan.

As is no one knows , even on here how it will help first time buyers, no idea on interest rates, eligibility or what products will be offered.
Doesn't the scheme start in 2 weeks?
I'm happy the schemes coming in as it will hopefully help me, I'm just saying a scheme is already in place that works, a simple change to the criteria would have been a simpler thing to implement.

getmore4less

James-may said:

I can't understand why they haven't just opened up the htb scheme from new builds to all builds.
As someone who has never purchased before and knows little about the property market, that would seem like a far simpler solution.
Just widen the existing schemes scope.
But it looks like a wishy washy scheme has been thought up, full of its, buts and maybes.
Hope it works though, I'm looking to buy with 5% deposit myself in a couple months.

The H2B scheme is an interest free pot of cash for 5 years they have to fund that.

The mortgage guarantee will be paid for by a premium by the lenders and only require the cash when people start defaulting.

There are ways to prop up defaulters that in some cases will be cheaper than repossession.