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SleepyHead

Help To Buy Discussion

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Simon Jack is doing a decent job raising this issue. But he doesn't get given much time by the Beeb bosses.

The excellent Merryn Somerset Webb states what should be the obvious to anyone with a brain.

Discussion about the massive, untested 'no exit strategy', highly risky, experimental government meddling that could destroy the economy, begins at 1hr 13min 36sec, and lasts for only 3 minutes! ... out of a 3 hour long programme.

Today programme 24th May 2013

Well worth a listen, but blink and you'll miss it.

Edited by sleeping dog

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Simon Jack is doing a decent job raising this issue. But he doesn't get given much time by the Beeb bosses.

The excellent Merryn Somerset Webb states what should be the obvious to anyone with a brain.

Discussion about the massive, untested 'no exit strategy', highly risky, experimental government meddling that could destroy the economy, begins at 1hr 13min 36sec, and lasts for only 3 minutes! ... out of a 3 hour long programme.

Today programme 24th May 1013

Well worth a listen, but blink and you'll miss it.

Cheers for the link.

Ms Somerset-Webb is good as usual.

Edited by cheeznbreed

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I've been meaning to ask this. Is the Help To Buy scheme 100% a given? There's been so much criticism of it.

Specifically, do the Treasury Select Committee have the power to stop it? If not, what is the point of them existing? I remember they asked a load of written questions of the government. When do they have to have replied to those questions by?

Is there ANY way by any other means it can be stopped?

If the only way it can be stopped is for Conservatives to make a pasty style U-turn then I don't think they will change their stance. It was their headline policy so they will want to save face. They will never go back unless forced to do so.

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I've been meaning to ask this. Is the Help To Buy scheme 100% a given? There's been so much criticism of it.

Specifically, do the Treasury Select Committee have the power to stop it? If not, what is the point of them existing? I remember they asked a load of written questions of the government. When do they have to have replied to those questions by?

Is there ANY way by any other means it can be stopped?

If the only way it can be stopped is for Conservatives to make a pasty style U-turn then I don't think they will change their stance. It was their headline policy so they will want to save face. They will never go back unless forced to do so.

It's started for newbuilds already- the 'Help to Buy- Equity Loan' scheme is live.

The 'Help to Buy- mortgage guarantee' starts for existing property in Jan 2014, but it's a circular waste of time as discussed elsewhere which fundamentally cannot offer any safety to lenders since they pay for it through the fees levied to provide the guarantee!

If you're after an existing property, the Help to Buy may help you out by encouraging those who can't get the deposit together to buy a new build instead.

Politicians can change their minds at any time of course, but I'd be surprised if the mortgage guarantee part is canned- it's a central plank of pre-election policy, even though it seems to be the equivalent of solving world hunger with a hosepipe from your backside to your mouth.

Edited by cheeznbreed

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Cheers for the link.

Ms Somerset-Webb is good as usual.

Ha!!!

The BBC pro-Niuew Labbia Gordon the Moron Idiot-Brown Munchkins move on swiftly to another topic.... And pretend NOTHING has happened.... :rolleyes::rolleyes: Same old, same old...... Just imagine how many BTL-owning BBC Apparatchiks sat there wetting their underwear praying for this piece to just go away.... FAST... :rolleyes:

Edited by eric pebble

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The loan is interest free for 5 years then gains interest per year after that , as I understand it you don't have to make payments then but when you sell house Gov get's their share back..so what happens if people don't sell.Especially if house prices stay the same or decrease they will still not have more than 5% equity so assuming 1)The scheme does end and 2) mortgages are the same as now how are they actually going to move ?

So isn't this just tax payer money they will never be seen again ?

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Politicians can change their minds at any time of course, but I'd be surprised if the mortgage guarantee part is canned- it's a central plank of pre-election policy, even though it seems to be the equivalent of solving world hunger with a hosepipe from your backside to your mouth.

Brilliant analogy of the idiocy.

The loan is interest free for 5 years then gains interest per year after that , as I understand it you don't have to make payments then but when you sell house Gov get's their share back..so what happens if people don't sell.Especially if house prices stay the same or decrease they will still not have more than 5% equity so assuming 1)The scheme does end and 2) mortgages are the same as now how are they actually going to move ?

So isn't this just tax payer money they will never be seen again ?

Yes, it is smoke and mirrors, a short-term con for the naive and ignorant. As if George Osborne or any of them actually care. It's about the banks, investors, big developers - those that have easy access to our corrupted political class.

There was a summit about the housing crisis not to so long ago that specifically excluded First Time Buyers or their representatives. The whole propping up of the housing market bubble is so bonkers it can only be due to corruption.

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The loan is interest free for 5 years then gains interest per year after that , as I understand it you don't have to make payments then but when you sell house Gov get's their share back..so what happens if people don't sell.Especially if house prices stay the same or decrease they will still not have more than 5% equity so assuming 1)The scheme does end and 2) mortgages are the same as now how are they actually going to move ?

So isn't this just tax payer money they will never be seen again ?

The interest-free loan only applies for the 'Help to Buy- Equity Loan' scheme, the £3.5Bn slush fund for builders' balance sheets for new build sales only.

The similarly-named 'Help to Buy- Mortgage Guarantee' is the scheme which starts in Jan 2014 for existing properties, it's a £12Bn pool whereby lenders can get a guarantee to cover losses on 95% of the loan fraction between 80%LTV and 95% LTV in exchange for a fee which is set at a level which the scheme self-financing. i.e. the net result is that lenders employ a few paper shufflers (if the fees are set properly). There is no interest-free loan in this part of the scheme, which is the only part available for existing properties. Borrowers will have to meet affordability criteria on the entire loan and repayments on any guaranteed portion are expected. There has been a bit of confusion about this, certainly in my brain at least, although others have said the scheme details have in fact been changed since it was announced at budget time.

Edited by cheeznbreed

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They had a discussion about help to buy on the Today programme this morning. Not one positive comment.

Merryn Somerset-Webb from money week gives it a good kicking, 1hr 13mins 39secs into the link.

http://www.bbc.co.uk/iplayer/episode/b01sjn53/Today_24_05_2013/

Her talk is music to a HPCer's ears.

Did you get as far as the first post on the thread.. :)

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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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