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Reading the scheme rules, remortgaging into a HtB guaranteed loan will only apply to loans taken out from 2 Jan 2014. You won't be able to remortgage a current loan into the HtB2 scheme.

Still no details on the fees payable by lenders or capital relief. According to the link I posted above these haven't yet been finalised.

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HSBC joins £12bn Help to Buy plan with bank to offer mortgages worth up to 95%

HSBC provided a major boost to the Government's Help to Buy scheme when it confirmed that it would begin offering mortgages worth up to 95 per cent of property values under the initiative.

It is the first major lender outside state-backed banking groups Royal Bank of Scotland and Lloyds to announce participation in the £12 billion programme.

http://www.independent.co.uk/news/uk/politics/hsbc-joins-12bn-help-to-buy-plan-with-bank-to-offer-mortgages-worth-up-to-95-8866137.html

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I assumed the latter.

I was too, the former might mean not much lending. ;)

NW SVR = BoE+3.5% so stress testing at 7% BoE = 10.5% NW IR.

Though if the income multiple is kept at 4.0 (with 95% LTV) it will actully be quite hard for the max repayments (I+C) 55% of (gross?) earnings @ 7% IR affordability criteria to kick in (the 4.0 income multiple does the job)

If it is 55% on another basis i.e. net and child care deducted that would have big effect other wise the 55% criteria would only start to matter above multiples nearing 5.0?

Might the HTB2 scheme lead to more standard lending criteria and affordability checks overall?

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Thoughts?

They're not in FLS are they? Better publicity from HtB? Even if they lend to practically no one?

As I said earlier, I think HSBC will want to be seen to be playing ball with such a high profile scheme – 'helping hardworking families who want to get on with their lives'.

Anyway, if the guarantee fee for 95% LTV is 0.9% of the loan then there's good money to be made at these relatively high 2-yr fix rates. The rates will likely fall as other lenders release products but imagine the mental process of a desperate wannabe homeowner:

Do I...

...get in now before the stampede and pay a usurious rate, but hopefully remortgage at a lower LTV after two years when house prices have risen.

OR

...wait for better rates on 95% LTV but risk house prices rising in the interim, leaving me no better off on the monthly mortgage payment and having to find a larger deposit.

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This little snippet crystallises the media attitude for me.

A horrified Murnaghan on Sky News, in reply to suggestion that more houses need to be built...... "But won't that tend to depress prices and people who have paid an awful lot of money for their houses find that they've got a depreciating asset and they are going into negative equity?".

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This little snippet crystallises the media attitude for me.

A horrified Murnaghan on Sky News, in reply to suggestion that more houses need to be built...... "But won't that tend to depress prices and people who have paid an awful lot of money for their houses find that they've got a depreciating asset and they are going into negative equity?".

Yes, he looked as if someone had taken a dump on the table, he has definitely got skin in the game I think.

Edited by dances with sheeple
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What the hell are the Government up to ?

As far as I can see , all this scheme is doing is getting people into more debt ,while possibly increasing house price inflation .

Why doesn't a mainstream politician admit that house price booms are inflation . Nothing more,nothing less ?

If HM Government wants to increase home ownership ,the best way is to let the housing market crash , so that young people can afford to buy at a cheaper price and have lower debt .

On the other hand of course , the more debt we are in , the more hours we have to put in at the workplace ,and the more compliant we become with the bosses ever increasing demands to work faster .

I think I have just answered my own question ;)

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If it wasn't bad enough that the last government turned the UK housing market into an enormous ponzi scheme at least you could reserve the right not to participate in the madness

What's particularly egregious with this government's help to buy scheme is money is,effectively being seized, on threat of imprisonment, off those who didn't wish to participate, to be used, in a futile attempt to keep the giant housing ponzi scheme afloat.

I read a great quote yesterday about Help to Buy;

Usually it’s considered polite to wait a century before repeating a catastrophic mistake, but this lot are going for it straight away
. Edited by Reck B
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What the hell are the Government up to ?

As far as I can see , all this scheme is doing is getting people into more debt ,while possibly increasing house price inflation .

Why doesn't a mainstream politician admit that house price booms are inflation . Nothing more,nothing less ?

If HM Government wants to increase home ownership ,the best way is to let the housing market crash , so that young people can afford to buy at a cheaper price and have lower debt .

On the other hand of course , the more debt we are in , the more hours we have to put in at the workplace ,and the more compliant we become with the bosses ever increasing demands to work faster .

I think I have just answered my own question ;)

If you have a workplace. We are at debt saturation point, there are not enough willing borrowers to keep the remaining Ponzi afloat (remember that sales volumes are down about 50% from the glorious "peak")

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In some ways I admire the open contempt they have doing this scheme, on top of all the other stimulus measures we've had since 2009 after house prices trebled in 10 years. Shows you what they think of you; non-owning savers, and the extent of what they've been prepared to do to lock in asset inflation for themselves, older home-owners and landlords, after a decade+ of mad HPI followed by massive stimulus and forbearance policies. Decades of compounding property inflation before that.

At least they live their lives, with ruthless self-interest, rather than laying their lives down for others, offering them excuses for the jumbo mortgages they took to outbid others, when the same people would more often than not dismiss you as a stupid renter. They can get away with these schemes when there is no stomach for a crash.

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In some ways I admire the open contempt they have doing this scheme, on top of all the other stimulus measures we've had since 2009 after house prices trebled in 10 years. Shows you what they think of you; non-owning savers, and the extent of what they've been prepared to do to lock in asset inflation for themselves, older home-owners and landlords, after a decade+ of mad HPI followed by massive stimulus and forbearance policies. Decades of compounding property inflation before that.

At least they live their lives, with ruthless self-interest, rather than laying their lives down for others, offering them excuses for the jumbo mortgages they took to outbid others, when the same people would more often than not dismiss you as a stupid renter. They can get away with these schemes when there is no stomach for a crash.

As I've said before, Mrs Thatcher will be turning in her grave.

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In some ways I admire the open contempt they have doing this scheme, on top of all the other stimulus measures we've had since 2009 after house prices trebled in 10 years. Shows you what they think of you; non-owning savers, and the extent of what they've been prepared to do to lock in asset inflation for themselves, older home-owners and landlords, after a decade+ of mad HPI followed by massive stimulus and forbearance policies. Decades of compounding property inflation before that.

At least they live their lives, with ruthless self-interest, rather than laying their lives down for others, offering them excuses for the jumbo mortgages they took to outbid others, when the same people would more often than not dismiss you as a stupid renter. They can get away with these schemes when there is no stomach for a crash.

I still think part of their thinking is to encourage supply on to the market, those with no or very low mortgage can afford to drop their prices to give the banks a new borrower?

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base rates are 0.5%

they lend at 4.99%

help to buy? more like help to die.

Something else Is widely missed about this scheme.

If you buy insurance, you pay a premium and the insurance company has to have a fund it keeps just in case. That is the Law.

In this case, the borrower is paying a premium in a vain attempt to borrow more than he could afford last friday Week. This premium will go into the usual fund the government keeps....a ledger in the general tax revenue and spent the day they get it.

IE, HTB is a TAX.

Edited by Bloo Loo
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I still think part of their thinking is to encourage supply on to the market, those with no or very low mortgage can afford to drop their prices to give the banks a new borrower?

I hope so, but that could easily been affected in other ways, to bring more supply to market, without overriding all market norms.

Without Gov backstopping mortgages so those with little savings/deposit can jump the queue afford to buy homes upto £600,000 with huge mortgage debt.

If prices do fall with more supply, then the same consequences will come on those who have jumbo mortgages, as if were interest rates to be raised now. Except with HtB2 they will have brought a whole more load of subprime 'entitled' idiots into the market, and then we have to suffer more excuses of why they the new 1.7m borrowers don't have any 'personal responsibility' for their huge mortgages.

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base rates are 0.5%

they lend at 4.99%

help to buy? more like help to die.

Indeed, I knew deep down this H2B part 2 would be a con, and shock horror I've been proven right. :rolleyes:

5.49% for a 5 year fix??? I'd better start investing in funeral parlours and florists because it looks like I'll make a mint when all the mugs that sign up to this BS are hanging themselves when their term expires, interest rates are higher and they realise that they have become untouchables.

As others have stated then end is approaching.

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  • 434 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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