Government Lending Scheme Failing To Help First-Time Buyers

[peahead]

Help to sell's big brother funding for lending - number of deals for FTBs down - all the cheap money bunged to people with maaahhooosive deposits - complete waste of time and money - yadda yadda yadda

http://www.telegraph.co.uk/finance/personalfinance/insurance/mortgage/10118063/Government-lending-scheme-failing-to-help-first-time-buyers.html

[inflating]

But while this has caused mortgage rates to tumble for those with large deposits, or significant equity in their home, it has not had a pronounced effect on the first-time buyer market, who are struggling to save for a deposit.

There has been a slight increase in the number of mortgage deals available to those with a 10pc deposit. But Moneyfacts said that when you looked at the number of deals available to those with either a 5 or 10pc down payment, this remained unchanged from a year ago, and still made up just 14pc of the mortgage market.

However, rates are slightly more competitive for those who can save a 10pc deposit.

Neg press like this might well encourage Osborne's lot to cosh a few million more savers and taxpayers over the head in yet more ways I fear

[The Knimbies who say No]

Neg press like this might well encourage Osborne's lot to cosh a few million more savers and taxpayers over the head in yet more ways I fear

Thankfully he doesn't have the wriggle room.

Seems like Dave, George and the Treasury are locked in an increasingly acrimonious debate about spending plans. And remember, Govt spending vs. receipts shows a £120 deficit, which has to be filled with tax rises, spending cuts or both before the nation's finances are stabilised if not repaired.

In my view, the scope to raise taxes from here is null.

Edited June 14, 2013 by cheeznbreed

[inflating]

Thankfully he doesn't have the wriggle room.

I'd love you to be right, but are we sure? Isn't that quite possibly what Canada Dry has been drafted in for ... to make 'difficult' decisions and mangle a load more taxpayers and savers?

[19 year mortgage 8itch]

Thankfully he doesn't have the wriggle room.

Seems like Dave, George and the Treasury are locked in an increasingly acrimonious debate about spending plans. And remember, Govt spending vs. receipts shows a £120 deficit, which has to be filled with tax rises, spending cuts or both before the nation's finances are stabilised if not repaired.

In my view, the scope to raise taxes from here is null.

I had a chat with someone about this earlier in the week, BBC researcher looking for a middle income case study. Conversation turned to post election tax rises and likelihod of VAT and NI rises. Upper rate income tax could see further fiscal drag, 40% below £40(!). The sums don't add up, look at corporation tax, how on earth will they get enough to pay up for their optimistic projections? Where is the escape route? Evn nominal GDP and inflation targeting looks like just escalating spending not growth. Everyone is itching to spending money on their pet projects.

Edited June 14, 2013 by SeeYouNextTuesday

[The Knimbies who say No]

I'd love you to be right, but are we sure? Isn't that quite possibly what Canada Dry has been drafted in for ... to make 'difficult' decisions and mangle a load more taxpayers and savers?

Fair point.

Gotta wonder how far it can be pushed, wages back to 2000 in real terms, housing expensivve, and beig avoided despite the biggest campaign to encourage debt servitude ever seen. No spring bounce, interest rates close to the bottom.

[inflating]

Fair point.

Gotta wonder how far it can be pushed, wages back to 2000 in real terms, housing expensivve, and beig avoided despite the biggest campaign to encourage debt servitude ever seen. No spring bounce, interest rates close to the bottom.

I was hoping you'd say I didn't have a fair point and that I'm bonkers.

(You can say it in the next post if you want, it'd be reassuring!)

Edited June 14, 2013 by inflating

[The Knimbies who say No]

I was hoping you'd say I didn't have a fair point and that I'm bonkers.

(You can say it in the next post if you want, it'd be reassuring!)

On the contrary, it was me who was being fanciful if anyone.

Osborne's upcoming spending review will cement his place as Broon2, I fear. Funded by Carnage.

Edited June 14, 2013 by cheeznbreed

[The Knimbies who say No]

I had a chat with someone about this earlier in the week, BBC researcher looking for a middle income case study. Conversation turned to post election tax rises and likelihod of VAT and NI rises. Upper rate income tax could see further fiscal drag, 40% below £40(!). The sums don't add up, look at corporation tax, how on earth will they get enough to pay up for their optimistic projections? Where is the escape route? Evn nominal GDP and inflation targeting looks like just escalating spending not growth. Everyone is itching to spending money on their pet projects.

Dave&Co. simply lack the character to seriously examine and implement spending cuts. It's much easier for Osborne to tell an engineer in Manchester that he'll be losing another 2k before it hits the bank account from the dispatch box rather than do likewise with his officials, face to face. No contingency, no backup, no plan B. Pretend to be responsible by announcing £10Bn of savings and carry on.

Did the Beeboid seem receptive btw?

[The Knimbies who say No]

I'm confused ...

(from Sept 2012) Only 250 homes were bought through the government's NewBuy scheme in the first four months since its launch in March 2012, according to government figures. The government hoped it would help up to 100,000 people move by 2015. The initiative allows first-time buyers to get a 90-95% mortgage for a new-build home with the government and housebuilders sharing part of the risk to protect lenders against default on the mortgage.

However, Jack Dromey, Labour's shadow housing minister, was critical. "The government needs to drop the hype and change course by implementing a real plan for homes, jobs and growth. If it fails to do so, at this rate, it will take 200 years for NewBuy to help 100,000 homebuyers buy their own home."

So we have Newbuy, FirstBuy, HelpToBuy all providing 'help' from the taxpayer for thousands upon thousands of people to buy houses, but for some reason the uptake is slow ... of course when first announced there was 'scramble for NewBuy loans' as there are now for HtB apparently.

Newbuy has been replaced by "Help to Buy- Equity Loan". Seems HtB has actually resulted in plenty of sales/reservations to date, trading updates have confirmed. I expect it'll tail off soon enough-seen any boomesque news pieces of people queueing round the block? Me neither.

[19 year mortgage 8itch]

Dave&Co. simply lack the character to seriously examine and implement spending cuts. It's much easier for Osborne to tell an engineer in Manchester that he'll be losing another 2k before it hits the bank account from the dispatch box rather than do likewise with his officials, face to face. No contingency, no backup, no plan B. Pretend to be responsible by announcing £10Bn of savings and carry on.

Did the Beeboid seem receptive btw?

To be fair it was Radio 4 but turns out I wasn't quite what they wanted. He made it clear that whoever won the next election, tax rises were inevitable.

[The Knimbies who say No]

To be fair it was Radio 4 but turns out I wasn't quite what they wanted. He made it clear that whoever won the next election, tax rises were inevitable.

Seems plausible but I think the ability to raise more is questionable. 2015 prices with 1998 purchasing power is not an enticing prospect.

[Sour Mash]

Help to sell's big brother funding for lending - number of deals for FTBs down - all the cheap money bunged to people with maaahhooosive deposits - complete waste of time and money - yadda yadda yadda

http://www.telegraph.co.uk/finance/personalfinance/insurance/mortgage/10118063/Government-lending-scheme-failing-to-help-first-time-buyers.html

I'm shocked, SHOCKED, to find that government policy has completely failed to 'help' normal people as they said it would and has instead just enriched a bunch of well connected banksters and insiders at the expense of savers and the taxpayer.

[I ♥ spreadsheets]

Newbuy has been replaced by "Help to Buy- Equity Loan". Seems HtB has actually resulted in plenty of sales/reservations to date, trading updates have confirmed. I expect it'll tail off soon enough-seen any boomesque news pieces of people queueing round the block? Me neither.

There's plenty shifting in Hampshire, from what I've seen. Whether it's the lure of HtB or just the fact that builders are suddenly building again in areas short of homes (on those plots they've been hoarding for years), I'm not sure.

[long time lurking]

I'm confused ...

(from Sept 2012) Only 250 homes were bought through the government's NewBuy scheme in the first four months since its launch in March 2012, according to government figures. The government hoped it would help up to 100,000 people move by 2015. The initiative allows first-time buyers to get a 90-95% mortgage for a new-build home with the government and housebuilders sharing part of the risk to protect lenders against default on the mortgage.

However, Jack Dromey, Labour's shadow housing minister, was critical. "The government needs to drop the hype and change course by implementing a real plan for homes, jobs and growth. If it fails to do so, at this rate, it will take 200 years for NewBuy to help 100,000 homebuyers buy their own home."

So we have Newbuy, FirstBuy, HelpToBuy all providing 'help' from the taxpayer for thousands upon thousands of people to buy houses, but for some reason the uptake is slow ... of course when first announced there was 'scramble for NewBuy loans' as there are now for HtB apparently.

""APPARENTLY""

Yep I can also remember the hype when first buy/ new buy were first launched and that`s all it was HYPE

[The Knimbies who say No]

I think I might have had too much to drink but I can imagine the situation and end up feeling sorry for George Osborne.

His hands are tied by politically astute front man Cameron with ring fencing re Overseas Aid, NHS and Education....then he's told he's got to save 'x' % of the total (which ends up being 20% or thereabouts of the rest) ...then the Liberals veto the possible options that he might like.

Hmm, Osborne will apparently set out his tough spending plans later this month, which will it seems be ncluding some £11Bn of reduced spending as the central plank of his demonstration of fiscal responsibility. View that against the fact he wrote a cheque for £9Bn to the IMF shortly after taking office without so much as wanting the matter discussed in Parliament!

He is hamstrung on spending, but so is every Chancellor. He has shown little aptitude for making fair, reasonable and defensible but also significant cuts to spending. He's in cloud cuckoo land if he thinks £10Bn will make any difference on annual deficit of ten times that and more.

£120Bn deficit, or £300/month/household equivalent. Good luck extracting that from fuel duty, income tax and VAT. No chance imo.

[Traktion]

[inflating]

Yet he's doesn't seem too keen at all

[doomed]

Hmm, Osborne will apparently set out his tough spending plans later this month, which will it seems be ncluding some £11Bn of reduced spending as the central plank of his demonstration of fiscal responsibility. View that against the fact he wrote a cheque for £9Bn to the IMF shortly after taking office without so much as wanting the matter discussed in Parliament!

He is hamstrung on spending, but so is every Chancellor. He has shown little aptitude for making fair, reasonable and defensible but also significant cuts to spending. He's in cloud cuckoo land if he thinks £10Bn will make any difference on annual deficit of ten times that and more.

£120Bn deficit, or £300/month/household equivalent. Good luck extracting that from fuel duty, income tax and VAT. No chance imo.

It is pretty clear how this is all going to end. Even if they found cuts of £120 billion (they won't) they still need to find more to pay of the massive debt that we are left with. We are past the point of no return; It just is not possible for the debt to be repaid.

[Bloo Loo]

It is pretty clear how this is all going to end. Even if they found cuts of £120 billion (they won't) they still need to find more to pay of the massive debt that we are left with. We are past the point of no return; It just is not possible for the debt to be repaid.

yes, they could.

They could stop paying themselves over the odds..that is, public sector largess in salaries, non jobs and pensions.

Program on the other day looking at cost cutting in a Norfolk NHS service ( kids I think)...interview in a beautiful reception area, fresh flowers and paintings everywhere, expensive logos clearly designer paid for, and an exec who couldnt actually answer a question straight. Clearly a member of a small empire where politiking rules the time of their days.

[wonderpup]

Hmm, Osborne will apparently set out his tough spending plans later this month, which will it seems be ncluding some £11Bn of reduced spending as the central plank of his demonstration of fiscal responsibility.

I'm still trying to figure out the part where taking on massive potential losses from defaulting mortgage payers in the form of 'Help to Buy' fits into the cunningly crafted plans of fiscal responsibility?

I mean what is the point of demonstrating your iron resolve by refusing to subsidise spare rooms on the one hand- while subsidising the purchase of entire houses on the other?

So fiscally prudent is the Chancellor that he is prepared to gamble billions of public money on the value of massively overpriced assets in the middle of a global recession unlike anything we have seen before- the man is a veritable role model of responsible and intelligent fiscal planning.

How can we take these people seriously?