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Fudge

Government Ftb Deposit

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I overheard a conversation along the lines that the housing market is picking up due

to some government scheme providing FTB with deposits.

BTL landlords are taking the opportunity of offloading their properties to FTB mainly thanks to

these government deposits.

Anyone know anything about this?

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http://www.communities.gov.uk/housing/buyi.../HomeBuyDirect/

Is it this turd of an idea?

shit-1.jpg

HomeBuy Direct will respond to the current market conditions by:

* making more affordable homes available to First-Time Buyers who are currently priced out of the market, due to the higher cost of obtaining a mortgage or the need to provide a larger deposit

* providing a targeted boost to the housing market by stimulating more transactions, and

* helping to maintain the capacity of the house building industry to respond when market conditions improve. This will, in turn, help us to achieve our long-term housing supply targets.

A first time buyer who was thinking of using the scheme said "WTF?"

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http://www.communities.gov.uk/housing/buyi.../HomeBuyDirect/

Is it this turd of an idea?

shit-1.jpg

A first time buyer who was thinking of using the scheme said "WTF?"

That looks like its only applies to newbuilds.

The conversation I heard said that a couple who were renting had to move out because the landlord had

sold the property. The way they were talking this government scheme was big and was the reason behind the pickup

in activity and prices.

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If they wanted to help the construction industry they could build 3 million council houses.

It couldn't cost more than these insane schemes and would be better for the country.

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If they wanted to help the construction industry they could build 3 million council houses.

It couldn't cost more than these insane schemes and would be better for the country.

If they did that, house prices would crash, the banks would go bust and we would have a depression........

Think how much rent you could collect on 3 million houses.

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If they did that, house prices would crash, the banks would go bust and we would have a depression........

Think how much rent you could collect on 3 million houses.

Think how much cheaper it is to pay HB on council rather than private..

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I overheard a conversation along the lines that the housing market is picking up due

to some government scheme providing FTB with deposits.

BTL landlords are taking the opportunity of offloading their properties to FTB mainly thanks to

these government deposits.

Anyone know anything about this?

Try these links we started here in March:

First Time Buyers Rush to Sign up to Government Scheme

Demand for the Government's new homebuying scheme has been three times the level expected

Demand from first-time buyers in London for a government homebuying scheme has been so high that developers think that they are in danger of running out of stock by summer. A new HomeBuy Direct scheme, launched in September last year, allows buyers earning less than £60,000 to take out a mortgage for 70 per cent of the cost of a property, with the Government and a developer jointly lending the remaining 30 per cent on an interest-free basis for five years, after which fees will apply.

The Housing Minister, Margaret Beckett, said that demand has been three times the amount the Government expected. Barratt, one of the developers included in the £400 million scheme, said that 20,000 potential buyers have registered their interest in buying one of its homes this way.

Next we heard:

Government in Row over HomeBuy Direct Figures

Housing minister Margaret Beckett has denied the Opposition's claims that no properties have been sold through the government's HomeBuy Direct scheme. The scheme was announced last September as part of a £1bn housing package and offered first-time buyers earning less than £60,000 a chance to get on the housing ladder via shared equity home ownership.

It offers buyers a loan of up to 30% of the purchase price, which is interest-free after the first five years.

When owners come to sell, the loan is repaid by splitting the proceeds between the government and the developer.

The Budget last week allocated an additional £80m in funding towards the initiative.

But following the Budget, Conservative leader David Cameron launched a scathing attack on Prime Minister Gordon Brown and chancellor Alistair Darling.

Cameron quotes Beckett's res- ponse to shadow housing minister Grant Shapps on the HomeBuy Direct scheme on March 24 2009, as recorded on Hansard, that "not a single sale had been made" since the scheme's inception.

But Beckett now claims this is not the case, saying that although there are no solid figures she has met "at least one couple" that has participated in the scheme.

Isn't that just wonderful!

Then we heard thank god :

Home Buyers in Lurch as Government Money runs out

First-time buyers using a government scheme to get on the housing ladder have had to pull out of purchases at the eleventh hour after funding ran out.

The Government said that the sudden shortage of cash was a result of the huge demand for its MyChoice Homebuy scheme, which enables buyers who do not have enough money for a deposit to obtain a mortgage with the Government stumping up the balance.

Some would-be buyers had already had offers on properties accepted and had instructed solicitors when they learnt that their previously accepted applications would no longer be successful, forcing them to back out of the transaction.

Experts on affordable housing said that funding issues would leave thousands of buyers who thought that they had been given the green light unable to proceed, because the way in which the application process works means that funding is allocated only once the buyer has found a property.

Maybe Darling heeded the warning from the BOE "not to stop the housing crash" .

Edited by Sybil13

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If you try applying for this scheme they will tell you two things

a) You have been accepted subject a a fantastically long list of restrictions that make the scheme pointless

B) however at present they have no money. Please come back later.

They only have funding available for about the first 6 weeks of each financial year.

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I overheard a conversation along the lines that the housing market is picking up due

to some government scheme providing FTB with deposits.

BTL landlords are taking the opportunity of offloading their properties to FTB mainly thanks to

these government deposits.

Anyone know anything about this?

Yes indeed.

http://www.housepricecrash.co.uk/forum/ind...amp;pid=1753922

Under Northern Rock's much criticised "Together" mortgage, a homebuyer could get a mortgage up to 100% of the purchase price and then take out a separate loan of up to a further 25%. The fact that this continued after nationalisation is currently attracting much media criticism.

However the fact is that the Government is still using the same model to push 100% lending into the market. Under the various "Homebuy" schemes, a home buyer can take out a loan from the Government of up to 50%* of the purchase price, and then use this loan as a deposit, allowing them to get a mortgage for the balance. This allows people to buy without saving or investing a penny of their own money, and puts the taxpayer directly on the hook in the case of non-payment or default. The Openmarket Homebuy scheme allows buyers to select any home they wish which is available for sale. In an added twist, the scheme is actively targetted at people who simply can't afford to buy.

Thankfully, as S13 has already posted, they have run out of cash.

The sub-scheme for new build however is (as far as I am aware), still doling out the cash.

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i can't imagine having a loan from the government.. then using that as a down payment on a loan from a government controlled bank

i'd rather boil my testicles and live in a bag made of hair

just sayin....

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