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Ologhai Jones

Help To Buy

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I should have put some time aside to try to understand precisely what Help to Buy is all about, but I've been bit busy lately.

However, I was wondering to myself whether the Help to Buy scheme would be any use and worth taking advantage of in any sense for why I might think of as being a typical HPCer, i.e., someone who is relatively cash rich who can afford a substantial (say, 50%+) deposit.

I'm sort of in the position where I could possibly buy outright (I'm kind of on the cusp so it would depend on precisely the price of such a house), so I'm kind of assuming that Help to Buy wouldn't offer anything that I'm interested in?

Can Help to Buy be any use to those with large deposits or even for those who may or may not need a mortgage when the time comes?

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I should have put some time aside to try to understand precisely what Help to Buy is all about, but I've been bit busy lately.

However, I was wondering to myself whether the Help to Buy scheme would be any use and worth taking advantage of in any sense for why I might think of as being a typical HPCer, i.e., someone who is relatively cash rich who can afford a substantial (say, 50%+) deposit.

I'm sort of in the position where I could possibly buy outright (I'm kind of on the cusp so it would depend on precisely the price of such a house), so I'm kind of assuming that Help to Buy wouldn't offer anything that I'm interested in?

Can Help to Buy be any use to those with large deposits or even for those who may or may not need a mortgage when the time comes?

No.

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To anyone thinking about Help2Buy, it's not free money y'know!

It all has to be paid back. Payments kick in after the tories are kicked out in 2015..UKIP/Labour/Lib Dems take the HPC bullet instead..

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Unless you have a cunning plan to flog the house to some idiot and make good your escape with the H2B money still owed. People do this when selling cars all the time.

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It's creating artificial demand which will inevitably push up prices. If you're buying then best get in early but you really need to consider where prices will be in five years or ten. The only way of being confident you're not buying into a sucker's rally is to wait until interest rates begin to recover.

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It's creating artificial demand which will inevitably push up prices. If you're buying then best get in early but you really need to consider where prices will be in five years or ten. The only way of being confident you're not buying into a sucker's rally is to wait until interest rates begin to recover.

Agree..

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I should have put some time aside to try to understand precisely what Help to Buy is all about, but I've been bit busy lately.

However, I was wondering to myself whether the Help to Buy scheme would be any use and worth taking advantage of in any sense for why I might think of as being a typical HPCer, i.e., someone who is relatively cash rich who can afford a substantial (say, 50%+) deposit.

I'm sort of in the position where I could possibly buy outright (I'm kind of on the cusp so it would depend on precisely the price of such a house), so I'm kind of assuming that Help to Buy wouldn't offer anything that I'm interested in?

Can Help to Buy be any use to those with large deposits or even for those who may or may not need a mortgage when the time comes?

If you have a 30-50% deposit then its probably not worth the hassle since the reduced interest due to the 15% "free" loan is negated by the the fact your are raising your LTV to 80% thus paying a higher IR on the remainder of the loan.

The irony is that those without a decent cash fund are the only ones who would benefit, and yet its these people who are most vunerable to any price fall/IR rise. Frankly youd have to be nuts to buy a house in the situation where the 5% HTB deposit was the total extent of your cash.

Edited by goldbug9999

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I think it depends on the small print.

I think it may be useful if you are worried that after buying a house the house price crash comes along. It could mean that the government take the loss and not you. (you will still lose your 5% deposit but that would be covered by not having to pay rent)

Although I think house prices should crash. Six years after the credit crunch I don't believe they will. I would be quite happy to see house prices fall even though I own one.

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If you wanted to buy a house at £185k but needed a £40K mortgage, would you not be better off taking the interest free loan?

Spend five years putting money in an ISA or some other scheme and use it to pay off the loan after the fifth year and before interest is charged?

Or am I missing something?

EDIT: Speeling

Edited by Driver

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Unless you have a cunning plan to flog the house to some idiot and make good your escape with the H2B money still owed. People do this when selling cars all the time.

Yes you could go abroad with the loot!

HTB is to get people with not much money even more in debt, to inflate an asset bubble! :huh:

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If you wanted to buy a house at £185k but needed a £40K mortgage, would you not be better off taking the interest free loan?

Spend five years putting money in an ISA or some other scheme and use it to pay off the loan after the fifth year and before interest is charged?

Or am I missing something?

EDIT: Speeling

Only applicable to newbuilds on the "Equity Loan" basis. You could do as you say but you have the following to consider:

1. You're being stiffed on the price of a newbuild to start with

2. It's an equity loan so you have some risk that a) prices rise and you're equity loan repayment rises in line with that, or B) prices fall and you kiss goodbye to your deposit.

Somewhere amongst those factors, there's a winning position, but I doubt it could be engineered to make it so, looks more like a gamble.

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Unless you have a cunning plan to flog the house to some idiot and make good your escape with the H2B money still owed. People do this when selling cars all the time.

HTB loan will be a first charge on the deeds, even in these regulatory-debased times you won't get away with trying that.

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Shows how ****** the policy is when even a Lib Dem can criticise it coherently. An absolute, grade A, Capesize disaster in the making.

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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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