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mikmo

Help To Buy

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That I can see there is no "Help to Buy" scheme in Northern Ireland, only England. Is there an equivalent coming to these shores?

Help to buy details - deets

Consider yourselves lucky.

They will only have it in the S.E. of England really so the bankers can keep their house prices up for another 12 months while they all try and sell them off to the greatest of the greater fools.

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That I can see there is no "Help to Buy" scheme in Northern Ireland, only England. Is there an equivalent coming to these shores?

Help to buy details - deets

Doesn't look like it's coming here.

Just have to save the deposit the good old way.

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I thought phase 1 wasn't coming to NI, but phase 2 (of which we've heard little detail) is?

No details of any lenders yet. Its unlikely any bar the usual subjects will avail of the scheme. There's a commercial fee the lender has to pay based on the LTV. Higher LTV higher fee. First trust, ulster, Halifax and soon Northern offer coownership with no commercial fees and zero risk. I can't see their benefit in offering it to be honest unless. Who knows. Its based on affordability and lending multiples so there could be little demand anyway. If you were looking to borrow Up to 175k and needed a scheme, coownership is a better bet. The mortgage payments will certainly be much cheaper.

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It has been announced that NI is to be included in the Phase2 ver in Jan but as 2buy says it requires the banks to sign up to it.

This is basically indemnity insurance by the taxpayer. prior to the crash the banks acquired mortgage indemnity insurance from the market but those companies obviously lost all and there is no such product available any more. Freddy and fanny offer the same in the US and it has long been standard practice over there.

To me the £600k limit is madness and is exposing the taxpayer to the very risky London market. I read somewhere that over 50% of the over £1m London market is cash sales from over seas (is that an export).

I would like to see the cap reduced if it comes here.

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Should be on BBC newsline tonight at 6.30 - "good news for housebuyers"

Help to Buy: lowdown on the government mortgage scheme

http://www.theguardian.com/money/2013/sep/30/help-to-buy-lowdown-government-mortgage-scheme

Just three lenders have signed up so far: Royal Bank of Scotland, NatWest and Halifax. However, RBS/NatWest clearly thinks this has the potential to be the financial equivalent of the Harrods sale – it says it will be offering a range of "competitive" 95% mortgages to first and next-time buyers in the UK, and that customers will be able to visit any of its 2,000 branches. "Opening hours will be extended at peak times in as many of our branches as possible once the scheme has been launched, to help with customer demand," a spokesman said.

Help-to-Buy stampede expected after Cameron brings phase two forward UK

Lenders could be overwhelmed if homebuyers rush to take advantage of £12bn scheme that still lacks clarity, says industry

http://www.theguardian.com/money/2013/sep/29/help-to-buy-cameron-phase-two

Some banks welcomed the news, with Royal Bank of Scotland promising to open its branches for longer. But mortgage brokers fears a stampede of new applications, while critics say the scheme will simply drive house prices higher.

Edited by Shotoflight

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Lenders undecided over Help to Buy UK

http://www.belfasttelegraph.co.uk/business/news/lenders-undecided-over-help-to-buy-29625333.html

But Ray Boulger, senior technical manager at mortgage adviser John Charcol, suggested that many would-be buyers who are pinning their hopes on the scheme will end up "disappointed".

He said they may find they do not meet the tough checks the Government has promised will be in place to make sure borrowers can afford to pay back their loans.

Mr Boulger said: "Unfortunately there are a lot of people who may think this is going to be their nirvana and for various reasons they won't qualify, perhaps because they have not got enough income or do not meet credit requirements."

HTB2 seems to have caught the local (financial/political) institutions on the hop as I can find little if any response.

It raises a few questions - will it leech demand from co-ownership or are they mutually exclusive?

If HTB2 is deemed appropriate for NI, why not HTB1?

If some (state owned) banks do participate and others don't, will those that don't lose market share or have to offer riskier mortgages to compete. If all participate will it impact on other mortgage products. Will it be the only game in town?

A national policy with a £600k cap - is it appropriate for NI? Could it be abused ie utilised by those for whom it was never intended (people who could easily afford a larger deposit but are happy for the taxpayer to take some of the risk?)

Will it encourage buyers to overstretch in a low interest rate environment?

Funny thing is, 100% mortgages are seen as poison but 95% are state backed - fine margin call, that.

In terms of sellers - If you were trying to sell for some time and thinking of dropping your price, what would be your EA's advice now (and your own thoughts)? wait till Jan? Or if you were on the sidelines thinking of selling, could now be an unexpected window (including NAMA, landlords etc)?

What ever happened momentum?

If any region should have learned lessons, and as people get poorer, surely it should be us. Shouldn't it?

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Lenders undecided over Help to Buy UK

http://www.belfasttelegraph.co.uk/business/news/lenders-undecided-over-help-to-buy-29625333.html

It raises a few questions - will it leech demand from co-ownership or are they mutually exclusive?

If some (state owned) banks do participate and others don't, will those that don't lose market share or have to offer riskier mortgages to compete. If all participate will it impact on other mortgage products. Will it be the only game in town?

A national policy with a £600k cap - is it appropriate for NI? Could it be abused ie utilised by those for whom it was never intended (people who could easily afford a larger deposit but are happy for the taxpayer to take some of the risk?)

If any region should have learned lessons, and as people get poorer, surely it should be us. Shouldn't it?

I hope it takes some of the customers away from Co-ownership. It was never designed to be helping people who could normally afford a mortgage.

I dont agree with the £600k cap at all. it is far to high. £200k or £250k should be more than enough for here.

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I hope it takes some of the customers away from Co-ownership. It was never designed to be helping people who could normally afford a mortgage.

I dont agree with the £600k cap at all. it is far to high. £200k or £250k should be more than enough for here.

There's talk lender will introduce their own regional cap.

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I hope it takes some of the customers away from Co-ownership. It was never designed to be helping people who could normally afford a mortgage.

I dont agree with the £600k cap at all. it is far to high. £200k or £250k should be more than enough for here.

Even at £250k, that's almost double the average UUJ/EA selling price currently.

If (as yet unknown acceptance) criteria is met, £12,500 gets your foot in the door of a quarter of a million house.

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Even at £250k, that's almost double the average UUJ/EA selling price currently.

If (as yet unknown acceptance) criteria is met, £12,500 gets your foot in the door of a quarter of a million house.

I have a feeling the banks are going to hammer them on affordability. For 250k you'll need to earn 65k with no kids. I don't think the banks will want to lend on it.

I think northern are pushing their 95% product because they are worried about losing market share to h2b. It was released before the treasury pulled their plans forward. I'd be interested in seeing Northern's criteria. If it takes off, Halifax will mop up those that meet affordability.

I think at last count h2b1 only "helped" 1000 transactions in England.

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I have a feeling the banks are going to hammer them on affordability. For 250k you'll need to earn 65k with no kids. I don't think the banks will want to lend on it.

I think northern are pushing their 95% product because they are worried about losing market share to h2b. It was released before the treasury pulled their plans forward. I'd be interested in seeing Northern's criteria. If it takes off, Halifax will mop up those that meet affordability.

I think at last count h2b1 only "helped" 1000 transactions in England.

Certainly seems a lot of trepidation and uncertainty about it. In fact, it's only material effect to date is to bring the concept of housing bubbles to the masses!!!

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Certainly seems a lot of trepidation and uncertainty about it. In fact, it's only material effect to date is to bring the concept of housing bubbles to the masses!!!

You're right. I never really looked at it like this before.

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To meet the affordability requirements on a 600k house you'll need to make 150k with no depends. Not many in NI on that.

I dont think we are talking about FTBers here. The Help to Buy is also for people moving house and whilst there may be a small number of £600k house sales here very few are borrowing all that. they would be typically be selling a £400k house with alot of equity in it. Scotland has set a limit of £400k. Here should be alot less.

Edited by BelfastVI

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I have a feeling the banks are going to hammer them on affordability. For 250k you'll need to earn 65k with no kids. I don't think the banks will want to lend on it.

I think northern are pushing their 95% product because they are worried about losing market share to h2b. It was released before the treasury pulled their plans forward. I'd be interested in seeing Northern's criteria. If it takes off, Halifax will mop up those that meet affordability.

I think at last count h2b1 only "helped" 1000 transactions in England.

Latest count 12,500 (Sept)and it was limited to new build only.

I agree Halifax, who have already signed up to this are set to mop up whilst the others try to work out what is happening.

Edited by BelfastVI

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Even at £250k, that's almost double the average UUJ/EA selling price currently.

If (as yet unknown acceptance) criteria is met, £12,500 gets your foot in the door of a quarter of a million house.

As I understand it this is not specifically a 95% loan. It can be, depending on circumstances a 90% loan and therefore 12k deposit would get you a £130k house. At the moment you generally need over £24k. I think the 5% will be used sparingly.

The help to buy replaces the mortgage idementy insurance that the banks used to buy. Obviously that is no longer available and the Gov is stepping into their shoes. the guarantee lasts for 7 years, by which time the repayment mortgages should have reduced below the level guaranteed.

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Latest count 12,500 (Sept)and it was limited to new build only.

I agree Halifax, who have already signed up to this are set to mop up whilst the others try to work out what is happening.

Can I have a link to the completion numbers please?

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As I understand it this is not specifically a 95% loan. It can be, depending on circumstances a 90% loan and therefore 12k deposit would get you a £130k house. At the moment you generally need over £24k. I think the 5% will be used sparingly.

The help to buy replaces the mortgage idementy insurance that the banks used to buy. Obviously that is no longer available and the Gov is stepping into their shoes. the guarantee lasts for 7 years, by which time the repayment mortgages should have reduced below the level guaranteed.

Sorry but I didn't this mortgage indemity insurance was ever a big thing in the UK, Canada and the US yes but not here.

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I dont think we are talking about FTBers here. The Help to Buy is also for people moving house and whilst there may be a small number of £600k house sales here very few are borrowing all that. they would be typically be selling a £400k house with alot of equity in it. Scotland has set a limit of £400k. Here should be alot less.

Unless I'm missing something why would someone with a lot of equity in their old home need to take advantage of a scheme desgined to enable people on high LTV ratios to get a mortgage?

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I dont think we are talking about FTBers here. The Help to Buy is also for people moving house and whilst there may be a small number of £600k house sales here very few are borrowing all that. they would be typically be selling a £400k house with alot of equity in it. Scotland has set a limit of £400k. Here should be alot less.

You've lost me here.

Affordability is based on the whole loan. Why would someone with a 10%+ deposit use the scheme? The rates are going to be worse than existing products. This isn't the shared equity scheme; the rates are based on the % borrowed. So a 90% LTV using the scheme will get 90% rates and have to meet affordability. Your typically selling a 400k house has lost me. Why would someone selling a house with " alot of equity in it" want to use a product designed for people with no deposit paying for it through more expensive rates?

400k house person will be old, they still have to meet affordability to move up the ladder.

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Can I have a link to the completion numbers please?

The scheme only started in June. I wouldnt think there are overly many completions to date. In Sept there were 12,500 mortgage offers using the scheme. Your post said 'helped'.

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