rantnrave Posted June 5, 2013 Share Posted June 5, 2013 2,291 take up the offer so far... out of an expected 100,000 From EAToday: There have been 2,291 home purchases completed in its first year under the NewBuy Guarantee scheme in England – seemingly a fraction of what ministers originally hoped. The figure, released by the Department for Communities and Local Government, is for up until March 31. CLG also reports that taxpayers’ liability by then had reached £23.1m, although none of the money had had to be paid out. The scheme was launched on March 12, 2012, and is a mortgage guarantee available to purchasers of new homes who have jus a 5% deposit. The Government indemnifies 5.5% of the property’s sale value, while developers in the scheme deposit 3.5% into the fund. Costs would be incurred only when and if the property had to be possessed by the lender and then sold at a loss. The scheme does not indemnify purchasers against negative equity. For the four quarterly periods that the scheme has been running, there have been respectively 253, 376, 908 and 754 homes bought under NewBuy, bringing the total to 2,291. The figures mean NewBuy completions dipped 17% in the first three months of this year compared with the last quarter of last year. Geographically, the scheme has met with very patchy take-up, petering out in swathes of the North and the West Country. The place with the highest number of NewBuy completions has been Dartford, Kent, where there have been 40 sales. The scheme is due to close in two years’ time, March 2015, and government ministers had said it could help up to 100,000 borrowers. Given that well under 3,000 borrowers have so far used the scheme in its first year, that target seems highly unlikely – particularly given the Help to Buy scheme, which builds on NewBuy, and which was launched in this year’s Budget. Ben Thompson, managing director of Legal & General Mortgage Club, said: “The UK is in dire need of a greater supply of affordable housing to meet ever increasing demand, and NewBuy, along with other Government stimulus measures, has been a laudable step in the right direction in meeting this need. “While many have pointed out that too much stimulus may cause artificial house price inflation in London and the South-East, the truth is that many areas of the country are still very much in need of schemes like NewBuy to get things back on track and to help many first-time buyers achieve their ambition of home ownership.” Quote at the end puts the cart before the donkey. Less hairbrained schemes are needed to let the market find it's own price level, not more. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted June 5, 2013 Share Posted June 5, 2013 Wonder how many are buy to letters in disguise? Quote Link to comment Share on other sites More sharing options...
Tonkers Posted June 5, 2013 Share Posted June 5, 2013 2,291 take up the offer so far... out of an expected 100,000 From EAToday: Quote at the end puts the cart before the donkey. Less hairbrained schemes are needed to let the market find it's own price level, not more. Starting to smell of desperation. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted June 5, 2013 Share Posted June 5, 2013 Newbuy flats....comedy gold. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted June 5, 2013 Share Posted June 5, 2013 less than 5% of one months mortgages.....over a year.... Its vanishingly small, but every one that enables a buyer to UP THEIR BID, sets a new price for the area. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted June 5, 2013 Share Posted June 5, 2013 The scheme was launched on March 12, 2012, and is a mortgage guarantee available to purchasers of new homes who have jus a 5% deposit Shouldn't that be "a mortgage guarantee to the purchaser's bank using the purchaser's taxes"? Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted June 5, 2013 Share Posted June 5, 2013 and thats on top of the equity on which the loan is already insured. This is a measure to prevent negative equity affecting the Banks position..... There should NEVER be a time when this is the case....the lender makes a decision based on the current market trend, and lends accordingly....If they need insurance, the borrower should pay for it...indeed, they used to. Quote Link to comment Share on other sites More sharing options...
inflating Posted June 5, 2013 Share Posted June 5, 2013 Quote Link to comment Share on other sites More sharing options...
I ♥ spreadsheets Posted June 5, 2013 Share Posted June 5, 2013 The way I see it, this scheme allowed people to get a 95% mortgage (and a shoebox). It will be more interesting to see how "Help to Buy" pans out, as this appears to be far more tempting for those desperate to own. The interest rates on the 75% mortgages offered are much lower, and the buyers don't have to worry about the equity loan for 5 years. So in the short term it all looks really "affordable". The problems will come when the outgrow their shoebox, and lose that 20% equity. What then? Quote Link to comment Share on other sites More sharing options...
zugzwang Posted June 5, 2013 Share Posted June 5, 2013 NewBuy = Goodbye. Quote Link to comment Share on other sites More sharing options...
57percent Posted June 5, 2013 Share Posted June 5, 2013 I've just realised this isn't the first part of Help2Buy, this is the old NewBuy. And no-one took that one either? Is this the part loan from govt/builder? Total failure and they made such a big thing about it. Will Help2Buy fail too? How much do these schemes cost to administer? Quote Link to comment Share on other sites More sharing options...
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