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http://www.taylorwimpey.co.uk/special+offers/help+to+buy/

Help to Buy is available now with Taylor Wimpey

The Government backed Help to Buy scheme can get you moving, whether you’re a first time buyer or you're looking to move on from your existing property. Register below for updates or take a look at our video to find out more.

■With the Help to Buy scheme, you’ll need just 5% deposit to buy a new home costing up to £600,000

■The Government will lend you up to 20% of the value of your new build home via an equity loan

■You will only need to secure up to a 75% mortgage

■The Help to Buy equity loan can be repaid at any time or on the sale of your home

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That part of it is less sickening. It's really an extension of what they already had.

With any luck this should feed into house building.

It's the second part (next year) which is clearly worrying.

- Existing houses.

- Existing owners.

- BTL 'investments'

- Foreign buyers?

- Overseas properties?

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That part of it is less sickening. It's really an extension of what they already had.

With any luck this should feed into house building.

It's the second part (next year) which is clearly worrying.

- Existing houses.

- Existing owners.

- BTL 'investments'

- Foreign buyers?

- Overseas properties?

+1

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I remember the days when you'd be prosecuted and the house repossessed if the building society found you'd borrowed the deposit.

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I remember the days when you'd be prosecuted and the house repossessed if the building society found you'd borrowed the deposit.

How quaint. Next you'll be going on about that old time when they actually asked for proof of income..

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http://www.taylorwimpey.co.uk/special+offers/help+to+buy/

Help to Buy is available now with Taylor Wimpey

The Government backed Help to Buy scheme can get you moving, whether you’re a first time buyer or you're looking to move on from your existing property. Register below for updates or take a look at our video to find out more.

■With the Help to Buy scheme, you’ll need just 5% deposit to buy a new home costing up to £600,000

■The Government will lend you up to 20% of the value of your new build home via an equity loan

■You will only need to secure up to a 75% mortgage

■The Help to Buy equity loan can be repaid at any time or on the sale of your home

Yep. ST +ve. LT massive -ve

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I remember the days when you'd be prosecuted and the house repossessed if the building society found you'd borrowed the deposit.

A likely story! Next you'll be telling us mortgage fraud was illegal in 'the old days'!

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T&C's were better before the crash.

Lower interest, no down payment, and property was guaranteed to make you money.

Now you get an interest free loan for 5 years, then get whacked for 20% equity loan rising RPI + 1%. What a great deal!

There are going to be a lot of people in deep financial trouble in 5 years.

It's going to be hard for people to sell in this scheme as well, unless they can roll over the equity loan.

Edited by cashinmattress

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T&C's were better before the crash.

Lower interest, no down payment, and property was guaranteed to make you money.

Now you get an interest free loan for 5 years, then get whacked for 20% equity loan rising RPI + 1%. What a great deal!

There are going to be a lot of people in deep financial trouble in 5 years.

It's going to be hard for people to sell in this scheme as well, unless they can roll over the equity loan.

But you're not looking at it from the perspective of can kicking politicians working within a five year fixed term Parliamentary cycle.

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..and it probably isn`t going to help the property market in any meaningful way, sheeple know that they are not going to get double digit returns any more, that is the game changer.

The trouble is, where else does the money go where it gets a return? Pensions?

There is still a depressing mantra of 'can't go wrong with bricks and mortar in the long-term'. Chuck in some apparently cheap credit for the deposit and it must mean an upward pressure on demand, but of course alongside other pressures.

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The trouble is, where else does the money go where it gets a return? Pensions?

There is still a depressing mantra of 'can't go wrong with bricks and mortar in the long-term'. Chuck in some apparently cheap credit for the deposit and it must mean an upward pressure on demand, but of course alongside other pressures.

What money? The majority of sheeple don`t have any money, they apply for loans when they want things, Liar Loans when they think they must get that thing or lose out. The credit binge in the run up to 2007 won`t be repeated now that sheeple see the ponzi unravelling, doesn`t matter how hard TPTB try. IMO.

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Somebody does not believe in the "free market" any more! :huh:

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What money? The majority of sheeple don`t have any money, they apply for loans when they want things, Liar Loans when they think they must get that thing or lose out. The credit binge in the run up to 2007 won`t be repeated now that sheeple see the ponzi unravelling, doesn`t matter how hard TPTB try. IMO.

You are correct as to the outcome, IMO, but the timing is hard to predict. This is yet another attempt to kick the can down the road, and it will be successful in doing that. It can't stop the ultimate unravelling, but when will that be? Actually, if your aim is to prop up house prices in nominal terms, while creating inflation by increasing government debt / liabilities, it's a pretty good policy.

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..and it probably isn`t going to help the property market in any meaningful way, sheeple know that they are not going to get double digit returns any more, that is the game changer.

Sheeple in London know they continue to see returns on property running far higher than savings rates, and that the full weight of government policy is firmly behind that, even if it is to the detriment of other parts of the economy. Any game changer is more likely to be external than internal at this stage, and would need to be overpowering..

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Sheeple in London know they continue to see returns on property running far higher than savings rates, and that the full weight of government policy is firmly behind that, even if it is to the detriment of other parts of the economy. Any game changer is more likely to be external than internal at this stage, and would need to be overpowering..

Hardly surprising....London wages go to pay London rents....Who are paying the wages who are recipients of the rents? ;)

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http://www.homeshub.co.uk/media/7364/help%20to%20buy%20guide%20210313.pdf

Outlines the scheme.

Frankly if it weren't for the fact that everyone will take this (interest free for 5yrs!) it would be a no brainer. Even at the end of the 5 years you would have to go another 15 years @ 6% increase in the 1.75 annual fee (pseudo interest) to get to just under 4% annual fee/interest on it.

I am slightly confused how you staircase as surely every time you wanted to repay some of the 20% you would need a valuation to see if that total value of the house had gone up/down in nominal terms.

As it is, from the 1st Jan 2014 most of this 20% will appear in newly invigorated HPI and so for a buyer it will be a dilemma. You have to take it because everyone else is and because its a great deal in isolation, but it will end up meaning you have simply borrowed another 20% of the home value to end up owing owing more on an artifically inflated asset.

The scheme also means that the equity is exposed to any HPC that might one day arrive, and l'd rather it were govt funny money than my own that l actually had to work and save up for that takes the hit. Again if HPI re-ignites then l totally understand that l am no better off from this.

One final note is that if this is actually successful then there will be a lull before 1st Jan 2014 as people put off buying because they can get this 'free' 20% so so l would expect volumes and prices to soften in the latter half of the year for existing builds.

Does anyone have nay information on the HPI on new builds from those builders who are in the scheme yet? Are there any early estimates of takeup on the newbuild portion of this that is currently active?

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You are correct as to the outcome, IMO, but the timing is hard to predict. This is yet another attempt to kick the can down the road, and it will be successful in doing that. It can't stop the ultimate unravelling, but when will that be? Actually, if your aim is to prop up house prices in nominal terms, while creating inflation by increasing government debt / liabilities, it's a pretty good policy.

Prices are only really "propped up" if people can actually achieve that price for their property, because if they can`t, it isn`t really a "price"? The boom in cheap credit "propped up" property prices, but unfortunately (for those trying to sell) that boom is not coming back. There is a difference between "I think my property is worth X", and "I have just sold my property for X"? Sales volumes tell us that, for the majority of sellers, todays asking prices are not achievable?

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Sheeple in London know they continue to see returns on property running far higher than savings rates, and that the full weight of government policy is firmly behind that, even if it is to the detriment of other parts of the economy. Any game changer is more likely to be external than internal at this stage, and would need to be overpowering..

Most recent buyers in London are on IO? There is no "return" for them, they are debt serfs, because they have to live somewhere?

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  • 238 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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