MAIN HELP TO BUY MARK2 THREAD -

[rantnrave]

YOUNG VOTERS DON’T KNOW WHAT HELP TO BUY IS

Get ready to use a defibrillator on David Cameron - just as he reshuffles the cabinet to become more media-savvy and in touch with the community, so it has been revealed that over 15 per cent of young adults believe Help To Buy is a personal shopping service.

Despite the publicity machine surrounding its introduction and apparent success, the government’s flagship housing measure is virtually unknown amongst many young adults.

When asked ‘What is the Help to Buy scheme?’ the 1,000 respondents to a survey were given a list of five options.

Over 15 per cent of 18-24 year olds thought it was a recently launched face-to-face personal shopping service by the major supermarkets for the over 60s. Some 10 per cent of 25-34 year olds thought the same.

Another 11 per cent of 18-24 year olds thought Help to Buy was a new web service to help online traders - and 10 per cent of 25-34 year olds thought the same.

It was only those aged 45 and older who, by a significant majority, understood what the scheme was. Some 85 per cent of those aged 45-54 and 94 per cent aged over 55 knew exactly what it was.

From EAToday

Presumably the older ones are informing the younger ones that they can't go wrong with bricks 'n mortar and letting them know about this poisonous scheme to get on the 'property ladder'

Edited July 16, 2014 by rantnrave

[The Knimbies who say No]

Some 85 per cent of those aged 45-54 and 94 per cent aged over 55 knew exactly what it was.

Ain't that the truth. A chute from the dizzying heights at the top of the property ladder.

[Democorruptcy]

I contacted the Treasury Select Committee and expressed some concerns about Help to Buy.

The basis of their reply was.... "we agree.... we said this...."

55. The Treasury Committee expressed serious reservations about the Help to Buy: mortgage guarantee scheme at the time of the 2013 Budget. We highlighted the risk that, without a corresponding supply response, the scheme could serve merely to drive up house prices. We also expressed concern about the appropriateness of the taxpayer acquiring contingent liabilities in this way and questioned the Government's assertion that the commercial fee to be charged to participating lenders could be priced accurately so as to ensure the taxpayer did not suffer losses. We also warned that the political pressure to extend the guarantee scheme—designed to run for three years—could be immense, particularly if the current shortage of high loan-to-value mortgages turned out to be to be structural and not the cyclical problem which the Government said that it was seeking to address.

56. The Government's response to our Report on the 2013 Budget has done little to allay our concerns that the primary effect of the guarantee scheme, at least in the short to medium-term, could be to raise house prices rather than stimulate new supply. Furthermore, we continue to believe that the government of the day will face strong incentives to extend the scheme, with the attendant risk that the mortgage guarantee scheme becomes a permanent feature of the UK mortgage market. Following Committee scrutiny it transpires that the so-called "double lock"—whereby we initially understood that the FPC would have a veto over the continuation of the scheme after three years—is not a lock at all. Our understanding is that the government of the day, if it chose to extend the scheme, could do so despite any objections raised by the FPC. The Government should provide more precise information on the operation of the so-called "double lock" and, in particular, re-examine the case for giving the FPC an explicit veto over the continuation of the scheme.

http://www.publications.parliament.uk/pa/cm201314/cmselect/cmtreasy/575/57506.htm

[zugzwang]

I contacted the Treasury Select Committee and expressed some concerns about Help to Buy.

The basis of their reply was.... "we agree.... we said this...."

Good work, dc. If this comes to pass then HtB may be given the same status in law as Canada's federal Mortgage Insurance Fund (MIF), established in 1954.

Which is ironic (or tragic, depending on your perspective) since the present Canadian govt is doing everything it can to privatise the MIF and get taxpayers' exposure to the housing market reduced - having spent the last three years progressively restricting mortgage insurance availability with a view to containing the bubble of reckless and indiscriminate lending let loose by former Governor of the Bank of Canada Mark Carney.

[FreeTrader]

HM Treasury quarterly release of HTB (mortgage guarantee) statistics:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/349540/help_to_buy_mortgage_guarantee_quarterly_statistics_020914.pdf

Also monthly update of HTB (equity loan) statistics:

https://www.gov.uk/government/statistical-data-sets/help-to-buy-equity-loan-scheme-monthly-statistics

[zugzwang]

London & SE grab lion's share of HtB subsidies.

London and the south-east grabbed the largest share of Help to Buy loans, according to the latest figures showing more than 48,000 homebuyers have used the government scheme aimed at homebuyers with small deposits.

Adding to concerns that subsidies have triggered a surge in house prices, 7,501 buyers in the south-east and 2,837 in London have taken out either an interest-free loan on a new build home or used the mortgage guarantee that allows them to buy a home with only a 5% deposit. The popularity of the scheme in the south-east pushed the north-west into second place, registering 6,180 buyers under the scheme.

Critics of the mortgage guarantee element of Help to Buy warned when it was launched almost year ago that it would push prices in London and the south-east higher unless the government found a way to increase the supply of homes coming up for sale.

http://www.theguardian.com/money/2014/sep/02/help-to-buy-scheme-treasury-figures

Edited September 2, 2014 by zugzwang

[The Knimbies who say No]

HM Treasury quarterly release of HTB (mortgage guarantee) statistics:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/349540/help_to_buy_mortgage_guarantee_quarterly_statistics_020914.pdf

Also monthly update of HTB (equity loan) statistics:

https://www.gov.uk/government/statistical-data-sets/help-to-buy-equity-loan-scheme-monthly-statistics

Thanks FT, seems like the HTB equity loan is ticking along, but the HTB (Equity Loan) stats by constituency are a bit funny.

Two columns are presented, one covering April 2013- end July 2014 and another covers April 2013 to end June 2014. So there is a month's difference in the stats.

Looking at the numbers from Altrincham and Sale West, 37 reservations were made to July 2014 in the longer period but 40 were made to June 2014.

Similar disappearing loans (#) can be seen in

Barnsley East 1

Carslisle 2

Chatham and Aylesford 1

Cheltenham 2

Gravesham 2

Halton 3

Lewisham East 1

Maldon 1

Oldham West and Royton 1

Redcar 5

South West Bedfordshire 5

Stockton North 1

Thornbury and Yate 1

Totnes 3

West Lancashire 1

Might be a good explanation for it, deals falling through at the last moment for whatever reason.

Edit there also seems to be a discrepancy of 1,929 loans between the constituency and regional data. Hmm.

[TheCountOfNowhere]

who has help to buy call helped?

[Democorruptcy]

I asked HM Treasury how many and the value of remortages done under HTB2. Got this reply...

We do not currently publish the number and value of remortgages carried out under the scheme. This is because a very small number of lenders are offering remortgages and to publish this information would result in the disclosure of commercially sensitive information.

Why is that information so sensitive? It's our taxes they are using there to underwrite losses for private firms. Then they won't tell us how much we are on the hook for?

[TheCountOfNowhere]

[The Knimbies who say No]

a terrible justification for withholding the information. Is there an appeals process?

[Democorruptcy]

a terrible justification for withholding the information. Is there an appeals process?

I've just replied that they are using my taxes to underwrite losses for private firms i.e. banks, instead of use them for public services etc and that I have a right to know.... so tell me.

[Dorkins]

I've just replied that they are using my taxes to underwrite losses for private firms i.e. banks, instead of use them for public services etc and that I have a right to know.... so tell me.

Is this FOI-able? Or was this treated as a FOI request?

Edited September 8, 2014 by Dorkins

[Democorruptcy]

Is this FOI-able? Or was this treated as a FOI request?

I presume it was one. It came from the "Correspondence & Information Rights Team".

[Democorruptcy]

The Treasury have replied again and still insist that remortgaging information is commercially sensitive. However if more firms do remortgaging in the future, then they may publish the details.

So.... if the info is sensitive they are only going to publish it when they can publish more of it? If.... it gives a non-participant lender an advantage they want to wait until the advantage is greater?

Also they say the scheme is completely self funding. The governbankment charges a fee that covers admin, cost of capital and expected losses if any mortgage defaults. So why do banks use it then? If the fees really covers all that why bother?

[Quicken]

The Treasury have replied again and still insist that remortgaging information is commercially sensitive. However if more firms do remortgaging in the future, then they may publish the details.

So.... if the info is sensitive they are only going to publish it when they can publish more of it? If.... it gives a non-participant lender an advantage they want to wait until the advantage is greater?

Also they say the scheme is completely self funding. The governbankment charges a fee that covers admin, cost of capital and expected losses if any mortgage defaults. So why do banks use it then? If the fees really covers all that why bother?

It's self-funding as long as prices keep rising and nobody defaults - just like the previous sub-prime models. You'd think TPTB might have learned something from that, but no.

EDIT: UK Treasury = AIG

Edited October 8, 2014 by Quicken

[tinker]

How Help to Buy is being sold to prospective buyers.

[Bruce Banner]

Seems that in order to get 'their' money back the government needs at least level prices but to make a profit (much touted IIRC) they need lots of lovely HPI .... and all the lovely stamp duty and interest payments to the bank.

I amuse myself by picturing Cameron slipping on a banana skin. To think I not only voted for the joker but convinced Labour voting extended family members to do so also. Fortunately, those I convinced to vote Conservative at the last election will now be joining me in voting UKIP in May.

[andygivenup]

Fortunately, those I convinced to vote Conservative at the last election will now be joining me in voting UKIP in May.

Sounds risky to me.

[Bruce Banner]

Sounds risky to me.

True, they could change their minds at the last minute.

[tinker]

Oh dear, desperate times, desperate measures. An election coming up!

http://www.dailymail.co.uk/news/article-2872991/JAMES-FORSYTH-Yanks-coming-late-save-Ed.html

A couple of paragraphs down in secondary story

Home is where the votes are ...

David Cameron is so concerned home ownership is falling that on Monday he’ll bring forward a plan for discounted homes for young, first-time buyers.

The scheme, which had originally been planned for the Tory manifesto, will see first-time buyers under 40 offered a 20 per cent discount on 100,000 new homes. The Government hopes this scheme will be up and running before the Election.

[tinker]

Desperate stuff with an election coming up... an advert for Help to Buy on prime-time TV (Broadchurch) extolling the virtues of the 5% deposit to buy the house of your dreams, helped by the government.

[kev-all-in]

from the beeb

First-time buyers at highest level since 2007, says Halifax

The number of first-time buyers in 2014 rose to its highest level in seven years, according to one of the UK's largest lenders.

The Halifax estimates that 326,500 people bought their first house or flat last year - a rise of 22% compared to 2013.

That was the highest total since 2007, at the start of the financial crisis.

The main reason was cheap mortgage rates, and government schemes like Help to Buy, which require small deposits.

Affordability

The Halifax said the size of the average deposit fell by 7% during the year.

In 2014, first-time buyers typically had to find a down-payment of £29,218 - compared with £31,582 the year before.

And they spent a smaller proportion of their income on the mortgage than in previous years, thanks to lower borrowing rates.

In the third quarter of 2014, first-time buyers were spending an average of 32% of their disposable incomes on paying the mortgage, according to the Halifax.

That compares to 50% of their incomes back in 2007.

However, prices themselves went up.

The average first-time buyer paid £171,870 in 2014, a 9% rise on the previous year.

About 80% of those taking advantage of the government's Help to Buy scheme are purchasing their first property.

Help to Buy enables people to put down a deposit for as little as 5% of the selling price.

[ProleStore]

Desperate stuff with an election coming up... an advert for Help to Buy on prime-time TV (Broadchurch) extolling the virtues of the 5% deposit to buy the house of your dreams, helped by the government.

I saw this. Appalling use of taxpayer money to pay for Tory propaganda.

'Help to buy has helped 70000 people get on the property ladder'

No, it has prevented thousands of people getting on the property ladder.

[long time lurking]

Desperate stuff with an election coming up... an advert for Help to Buy on prime-time TV (Broadchurch) extolling the virtues of the 5% deposit to buy the house of your dreams, helped by the government.

Same add all over the minor channels last night Quest Dave More 4,,, transactions have gone through the floor in 2014 so desperate is spot on