subspace Posted July 31, 2014 Share Posted July 31, 2014 More than 4,000 households in England used the government's Help to Buy loan scheme to buy properties in June, the highest monthly total since the scheme began in 2013.The latest government data indicated more than 4,300 completions during the month, with more than 27,100 homes bought using the scheme. The figures refer to the first phase of Help to Buy, which offers buyers an interest-free loan worth up to 20% of the price of a new-build home. http://www.theguardian.com/money/2014/jul/31/help-to-buy-scheme-4300-completions-june Quote Link to comment Share on other sites More sharing options...
Guest Jemmy Button Posted August 1, 2014 Share Posted August 1, 2014 http://www.theguardian.com/money/2014/jul/31/help-to-buy-scheme-4300-completions-june I'm voting UKIP... Quote Link to comment Share on other sites More sharing options...
stuckmojo Posted August 1, 2014 Share Posted August 1, 2014 I read somewhere else that the average LTV for this usury scheme was the highest ever in June at 94.4%. The scheme is nearly as bad as shared ownership. Only you are borrowing from the government and you will never own your house. It's disgusting. Quote Link to comment Share on other sites More sharing options...
Mr 0.01% Posted August 1, 2014 Share Posted August 1, 2014 It befuddles me how unaffordable help to buy is at high LTV ratios. Are ppl (in general) that manic about buying a shoebox that they're happy to commit themselves to decades of debt slavery? Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted August 1, 2014 Share Posted August 1, 2014 Boosting GDP. Success all the way. Quote Link to comment Share on other sites More sharing options...
Wurzel Of Highbridge Posted August 1, 2014 Share Posted August 1, 2014 I have nothing against HTB1, if people want to sign up to a lifetime of debt to buy a newbuild then so be it. I object against HTB2 as there is just no need for it. Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted August 1, 2014 Share Posted August 1, 2014 7,772 equity loans made in Q2, a new high after Q4 2013 at 7,501 completions. Perhaps it is a feature of the way the quarterly data are collected but the last month in each quarter so far except June '13 (Sep '13, Dec '13, Mar '14, Jun '14) seem to show a spike, so the eyecatching 4,357 completions in June implies a huge run rate but it may drop off substantially in July if the pattern seen to date is repeated. Edit link to pdf: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/338725/20140731_Help_to_Buy_Equity_Loan_and_Help_to_Buy_NewBuy_statistical_release.pdf And spreadsheets: https://www.gov.uk/government/statistics/help-to-buy-equity-loan-scheme-and-help-to-buy-newbuy-statistics-april-2013-to-june-2014 Quote Link to comment Share on other sites More sharing options...
Billy soy Posted August 1, 2014 Share Posted August 1, 2014 Help to buy. Putting the needs of developers, banks and older sellers first. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted August 1, 2014 Share Posted August 1, 2014 Help To Buy Scheme Hits New High - Government duplicity hits new lows. Quote Link to comment Share on other sites More sharing options...
FreeTrader Posted August 1, 2014 Share Posted August 1, 2014 Lloyds is set to slash the maximum loan size for all shared ownership and shared equity products - including Help to Buy equity loans - to £150,000.Previously, all Lloyds brand offering Help to Buy - Halifax and Lloyds Bank - would accept applications for loans up to £500,000 for such products but from tomorrow the maximum loan size for these products will be cut to just £150,000 temporarily. A spokeswoman for Lloyds says: “We have taken the decision to temporarily cap shared equity and shared ownership lending to £150,000. This is a prudent, short term change that reflects the fact that we currently hold around a 50 per cent share of this market and is a further step to focus our activity on supporting first-time buyers who have limited options to get onto the ladder. “We remain committed to supporting the affordable housing sector and new build market, recently extending our Help to Buy mortgage guarantee scheme to allow applications for those with a 5 per cent deposit on new build properties.” London & Country associate director of communications David Hollingworth says the move “changes the face of Help to Buy 1”. http://www.mortgagestrategy.co.uk/news-and-features/sectors/products/products-news/lloyds-slashes-help-to-buy-1-maximum-loan-to-150000/2012941.article Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted August 1, 2014 Share Posted August 1, 2014 I do miss those Northern Rock 120% mortgages. What every became of the NR ? Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted August 1, 2014 Share Posted August 1, 2014 http://www.mortgagestrategy.co.uk/news-and-features/sectors/products/products-news/lloyds-slashes-help-to-buy-1-maximum-loan-to-150000/2012941.articleLike MMR does not cover 5 yr fixes, am I right in thinking that MMR for HTB 1 does not consider repayment or charges on the equity part of the deal? Just the mortgage payments on the 75% of the deal for the initial no cost 5 years? All these coincidences... Quote Link to comment Share on other sites More sharing options...
Wurzel Of Highbridge Posted August 1, 2014 Share Posted August 1, 2014 Lloyds is set to slash the maximum loan size for all shared ownership and shared equity products - including Help to Buy equity loans - to £150,000. Has anyone seen a new build under £150k since help-to-buy came in? It looks like game over for help-to-buy. Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted August 1, 2014 Share Posted August 1, 2014 http://www.mortgagestrategy.co.uk/news-and-features/sectors/products/products-news/lloyds-slashes-help-to-buy-1-maximum-loan-to-150000/2012941.article Interesting stuff, good spot. Quote Link to comment Share on other sites More sharing options...
Quicken Posted August 1, 2014 Share Posted August 1, 2014 Spot the difference: HTB1: interest free Student fee loans: RPI plus 3% We can't afford to fund education, apparently. Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted August 1, 2014 Share Posted August 1, 2014 (edited) Has anyone seen a new build under £150k since help-to-buy came in? It looks like game over for help-to-buy. You can have a 3 bed for £120k (the RM price is the usual deception some developers use with Help to Buy prices) if you are keen to live in the elbow of a major road interchange and want a 3mx3.5m master bedroom: http://www.rightmove.co.uk/new-homes-for-sale/property-43065619.html Edited August 1, 2014 by Joan of The Tower Quote Link to comment Share on other sites More sharing options...
FreeTrader Posted August 1, 2014 Share Posted August 1, 2014 Like MMR does not cover 5 yr fixes, am I right in thinking that MMR for HTB 1 does not consider repayment or charges on the equity part of the deal? Just the mortgage payments on the 75% of the deal for the initial no cost 5 years? Just to be clear, even with a 5-year fix an affordability test is still required as prescribed by MMR. However the test for future rises in interest rates is avoided. I presume the same applies to a HTB equity loan, with only the mortgage element considered (75%). Howeever the lender might take the future equity loan fee into account if (for example) the borrower's income was unlikely to rise in future. All these coincidences... The pattern with Lloyds has been: 1) Mid-June: Withdraws lending to non-FTBs under HTB (Equity Loan). 2) Mid-July: Extends lending under HTB (Mortgage Guarantee) to new builds for both FTBs and home movers. Increases max LTV on new builds to 95%. 3) End-July: Limits HTB (Equity Loan) to £150,000 max. It seems to me that the bank is pushing wealthier new build buyers away from HTB1 to HTB2 where there is more profit to be made. If these buyers are deposit-constrained rather than income-constrained, why not take more money off them? That's possibly why Lloyds have said the move is temporary - they want to see how business volumes are affected by this strategy. Quote Link to comment Share on other sites More sharing options...
TeddyBear Posted August 1, 2014 Share Posted August 1, 2014 Unless other banks pile in to offer higher limits this will be the death knell for help to buy in London and other high price areas surely? Government will pay up to 15% of deposit if you put down 5% I understand? So, if I am understanding this correctly, if you can borrow £150k and have a 20% deposit this leaves you with an upper limit of around 188k for the purchase? I was shocked when I recently learnt that HTB2 had no upper earnings limit as well as the 600k upper price - this surely led to the massive jumps where you saw a London zone 3 tiny terrace leap from about 280k to 450k in the space of a year. Great news if it is over. Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted August 1, 2014 Share Posted August 1, 2014 Just to be clear, even with a 5-year fix an affordability test is still required as prescribed by MMR. However the test for future rises in interest rates is avoided. I presume the same applies to a HTB equity loan, with only the mortgage element considered (75%). Howeever the lender might take the future equity loan fee into account if (for example) the borrower's income was unlikely to rise in future. The pattern with Lloyds has been: 1) Mid-June: Withdraws lending to non-FTBs under HTB (Equity Loan). 2) Mid-July: Extends lending under HTB (Mortgage Guarantee) to new builds for both FTBs and home movers. Increases max LTV on new builds to 95%. 3) End-July: Limits HTB (Equity Loan) to £150,000 max. It seems to me that the bank is pushing wealthier new build buyers away from HTB1 to HTB2 where there is more profit to be made. If these buyers are deposit-constrained rather than income-constrained, why not take more money off them? That's possibly why Lloyds have said the move is temporary - they want to see how business volumes are affected by this strategy. Yes thank you for the clarification. I was thinking of a previous comment about the crazy affordability of htb and I was referring to the presumable lack of stress testing at 7% scenario not general affordability. Ditto ignoring the equity loan elephant. Just like shared ownership or interest only, people are hoping they'll do better in the future. Quote Link to comment Share on other sites More sharing options...
Nabby81 Posted August 1, 2014 Share Posted August 1, 2014 Has anyone seen a new build under £150k since help-to-buy came in? It looks like game over for help-to-buy. The prices have all gone up , Barretts I believe recently reported prices had increased over last year. It's a huge con the 5% needed for the deposit now is no cheaper than the 10% needed previously.The home builders are laughing all the way to the bank. Quote Link to comment Share on other sites More sharing options...
wonderpup Posted August 1, 2014 Share Posted August 1, 2014 It's a huge con the 5% needed for the deposit now is no cheaper than the 10% needed previously.The home builders are laughing all the way to the bank. +1 A lot of people on here predicted this would happen. But lets face it- the real purpose of help to by was to help the Tories to buy the next election- and I'm not even sure that has worked out for them- instead of a being seen as helping the middle class to afford a home Osborne is seen as inflating prices- not the outcome they had in mind. Quote Link to comment Share on other sites More sharing options...
AC44 Posted August 1, 2014 Share Posted August 1, 2014 But sadly the Labour does not have the guts to remove it so the HtB will continue.. I am just waiting to see HTB3 offering 0% deposit loans..With these parties leading us anything can happen.. Quote Link to comment Share on other sites More sharing options...
Patfig Posted August 1, 2014 Share Posted August 1, 2014 I am waiting for the cash back option Quote Link to comment Share on other sites More sharing options...
BlokeInDurham Posted August 1, 2014 Share Posted August 1, 2014 Spot the difference: HTB1: interest free Student fee loans: RPI plus 3% We can't afford to fund education, apparently. Spot the pattern: Help to Buy: props up the assets of an older generation at the expense of a younger generation; Student fees: shits on a younger generation because an older generation don't want to pay when it's their turn. Political decision-making has got nothing to do with what the actual thing is being funded, unfortunately. It's purely about who would be on the hook for paying for it. Quote Link to comment Share on other sites More sharing options...
wonderpup Posted August 1, 2014 Share Posted August 1, 2014 But sadly the Labour does not have the guts to remove it so the HtB will continue.. True- if they pull it they will crash the market- not because it's that big a scheme but because it would be a declaration that the UK government no longer stood behind the housing market. Quote Link to comment Share on other sites More sharing options...
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