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  • FIRST POST
    • C_Mababejive
    • By C_Mababejive 12th Aug 18, 11:13 AM
    • 10,746Posts
    • 9,637Thanks
    C_Mababejive
    Is the Help To Buy gravy train about to hit the buffers?
    • #1
    • 12th Aug 18, 11:13 AM
    Is the Help To Buy gravy train about to hit the buffers? 12th Aug 18 at 11:13 AM
    Its strange isnt it? A Conservative Party who's core values are all about the free market, letting the market decide etc etc and yet they carefully select which markets to manipulate possibly advised by those who have vested interests.

    George Osborne floated the Help To Buy scheme.

    One wonders why.

    Why not have a help to buy to get other things people cant afford such as;

    Expensive sports cars
    Yachts
    Holiday homes in the Med'
    Buy another life with assisted settlement in better countries than the UK

    and so the list goes on.

    Maybe it was well meaning but we know that whether Government interferes with, they usually !!!!!! up.

    And so it was that OUR taxpayer money was thrown at the scheme. Maybe the original idea was to build modest but perfectly acceptable family homes to be sold at fair prices.


    That however is largely not what happened.

    So many help to buy schemes are so called detached executive homes costing small fortunes and way out of reach of first time buyers.

    Further they are sold with a huge new build premium far in excess of their real build cost.

    Big housebuilders love it. Their share prices rose as fast as the bit fat bonuses paid to executives.

    The first HTP schemes were floated about five years ago.

    Those so called free loans will be about to come home to roost.

    I believe the interest will be RPI plus 1% ?

    So not only will many buyer ,who were stretched in the first place, be faced with having title to an overpriced house, they will have the base mortgage to pay and now their "free loan" at RPI plus 1%

    The spectre of negative equity looms.

    HM Government should NEVER have interfered with the housing market and should certainly not have used it as a vehicle to funnel taxpayers cash to major housebuilders and their fat cat executives.

    https://www.theguardian.com/money/blog/2017/oct/21/help-to-buy-property-new-build-price-rise
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
Page 1
    • quantumlobster
    • By quantumlobster 12th Aug 18, 11:16 AM
    • 277 Posts
    • 601 Thanks
    quantumlobster
    • #2
    • 12th Aug 18, 11:16 AM
    • #2
    • 12th Aug 18, 11:16 AM
    Wrong forum. There's a "Debate house prices and the economy" forum for this.

    https://forums.moneysavingexpert.com/forumdisplay.php?f=149
    • kingstreet
    • By kingstreet 12th Aug 18, 2:34 PM
    • 34,457 Posts
    • 18,710 Thanks
    kingstreet
    • #3
    • 12th Aug 18, 2:34 PM
    • #3
    • 12th Aug 18, 2:34 PM
    The payment of fees in year six starts at 1.75%pa and increases by RPI + 1%pa, so if inflation is running at 5%pa, the rate in year seven will be 1.86%, in year eight 1.98% and so on.

    HTB started in April 2013 so there are already borrowers making payments.

    As the scheme is a loan secured on a property, the Exchequer actually recovers money when a property is sold. It may be more or less than the original loan amount as it is based on the property value at the time of redemption.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • jimbog
    • By jimbog 12th Aug 18, 6:17 PM
    • 763 Posts
    • 1,319 Thanks
    jimbog
    • #4
    • 12th Aug 18, 6:17 PM
    • #4
    • 12th Aug 18, 6:17 PM
    Wrong forum
    The problem with quotations on the internet is that you can never verify their authenticity - Abraham Lincoln
    • steampowered
    • By steampowered 12th Aug 18, 6:30 PM
    • 2,948 Posts
    • 2,927 Thanks
    steampowered
    • #5
    • 12th Aug 18, 6:30 PM
    • #5
    • 12th Aug 18, 6:30 PM
    Why not have a help to buy to get other things people cant afford such as;

    Expensive sports cars
    Yachts
    Holiday homes in the Med'
    Originally posted by C_Mababejive
    HM Government should NEVER have interfered with the housing market
    You must be against council housing and housing benefit too, then.
    • mrginge
    • By mrginge 12th Aug 18, 7:07 PM
    • 4,696 Posts
    • 8,936 Thanks
    mrginge
    • #6
    • 12th Aug 18, 7:07 PM
    • #6
    • 12th Aug 18, 7:07 PM
    You must be against council housing and housing benefit too, then.
    Originally posted by steampowered
    And the nhs
    • Crashy Time
    • By Crashy Time 12th Aug 18, 8:49 PM
    • 6,973 Posts
    • 2,558 Thanks
    Crashy Time
    • #7
    • 12th Aug 18, 8:49 PM
    • #7
    • 12th Aug 18, 8:49 PM
    You must be against council housing and housing benefit too, then.
    Originally posted by steampowered

    The government know that housing benefit needs to be cut, they will probably be hoping to blame a lot of the housing market woes to come on Brexit IMO.
    • missplant
    • By missplant 12th Aug 18, 9:03 PM
    • 15 Posts
    • 26 Thanks
    missplant
    • #8
    • 12th Aug 18, 9:03 PM
    • #8
    • 12th Aug 18, 9:03 PM
    i have the H2B loan and personally if you know what youre doing with the loan for example saving or re-mortgaging to pay it off then no it wont hit the 'buffers' I have received my 'worked example' of how much interest i would be paying the amount 31 a month.
    • Thrugelmir
    • By Thrugelmir 12th Aug 18, 9:41 PM
    • 61,289 Posts
    • 54,536 Thanks
    Thrugelmir
    • #9
    • 12th Aug 18, 9:41 PM
    • #9
    • 12th Aug 18, 9:41 PM
    The spectre of negative equity looms.
    Originally posted by C_Mababejive
    Since the MMR was introduced. There has been a fundamental swtich to repayment mortgages. The interest only era is the ticking timebomb. This has yet to be defused.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • demontfort
    • By demontfort 13th Aug 18, 12:17 AM
    • 192 Posts
    • 279 Thanks
    demontfort
    Agree with the OP, H2B and all the ISA cash handouts are a disgrace of a policy brought in to prop up house prices and buy votes. Not even comparable to Housing Benefit or Council Housing. I pay taxes for public services and to provide a safety net for my fellow citizens. Why should the taxpayer subsidise somebody buying their own house?



    There's so much poverty, crime and infrastructure decay in the UK, this H2B cash could be used for far better things.Right now with no salary cap somebody on a 100k or more could be getting a 5 year interest free loan of up to 240k in London.
    • csgohan4
    • By csgohan4 13th Aug 18, 7:57 AM
    • 5,276 Posts
    • 3,375 Thanks
    csgohan4
    I Disagree, schemes like the HTB are false economy and really the only people who will gain is the government, they will almost certainly get back more than they provided as they have a x% of your house and most houses gain in equity.


    Plus new houses are overpriced anyways, so your paying more just to access a scheme
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
    • Crashy Time
    • By Crashy Time 13th Aug 18, 7:36 PM
    • 6,973 Posts
    • 2,558 Thanks
    Crashy Time
    Agree with the OP, H2B and all the ISA cash handouts are a disgrace of a policy brought in to prop up house prices and buy votes. Not even comparable to Housing Benefit or Council Housing. I pay taxes for public services and to provide a safety net for my fellow citizens. Why should the taxpayer subsidise somebody buying their own house?



    There's so much poverty, crime and infrastructure decay in the UK, this H2B cash could be used for far better things.Right now with no salary cap somebody on a 100k or more could be getting a 5 year interest free loan of up to 240k in London.
    Originally posted by demontfort

    That bit backfired I think, they ended up buying votes for Brexit because a lot of people think high house prices are the result of free movement of people across the EU. The whole extend and pretend prop up debtors at any cost plan is backfiring spectacularly in fact.
    • Crashy Time
    • By Crashy Time 13th Aug 18, 7:53 PM
    • 6,973 Posts
    • 2,558 Thanks
    Crashy Time
    http://www.propertyindustryeye.com/uk-housing-market-is-a-bubble-with-help-to-buy-pushing-up-prices-warns-bank-strategist/
    • AG47
    • By AG47 16th Aug 18, 10:41 AM
    • 941 Posts
    • 174 Thanks
    AG47
    I wonder what the next phase will be in the help to bubble scheme of things.

    Next they may try 50% interest free for 5 years with only. 2.5% deposit required and there may be schemes in place for the government to lend that deposit in the first place anyway.

    They have to do some5ing quite extreme to help keep the bubble inflated so much.......
    Nothing has been fixed since 2008, it was just pushed into the future
    • Crashy Time
    • By Crashy Time 28th Aug 18, 10:02 PM
    • 6,973 Posts
    • 2,558 Thanks
    Crashy Time
    I wonder what the next phase will be in the help to bubble scheme of things.

    Next they may try 50% interest free for 5 years with only. 2.5% deposit required and there may be schemes in place for the government to lend that deposit in the first place anyway.

    They have to do some5ing quite extreme to help keep the bubble inflated so much.......
    Originally posted by AG47

    With the US hell bent on raising rates they are paddling against the current now
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