Help to Buy removal may be like MIRAS removal

[Si1]

Just a thought. Are the sheeple going to gorge on help to buy equity loans right until the bitter end?

[Bluestone59]

13 minutes ago, Si1 said:

Just a thought. Are the sheeple going to gorge on help to buy equity loans right until the bitter end?

Summer 1988, one of our best workers (building trade) said earnings confirmation request for mortgage coming, need you to "slightly" overstate earnings to ensure acceptance.

My job to deal with, I said no. It's fraud and probably not even in your interests due to danger of big price falls post MiRAS removal.

Boss calls me in, this'll be interesting. He said word for word what I did, which I expected as when MIRAS was abolished there was a several month grace period and he and I spoke about it at the time; he said it was lunacy, politicians not fit for purpose.

Worker leaves firm and goes to rival outfit. One of our guys later bumped into him on a building site, he said something about a lucky escape.

I'm still waiting for him to thank me.

 

[btd1981]

There can no grace period, or it will definitely happen.

There is guaranteed to be a grace period....

[Monkey]

I need to read up on MIRAS... i was too young to know about it.

But i think with HTB,  it will be mortgages companies in charge of it. They will be refusing applicants who want to use it long before it gets pulled by the government

[scottbeard]

Help to buy isn't being removed though is it?  The original end date was 2021 and now it's been extended to 2023 - it's just that it only applies to first time buyers now?

[happyguy]

It will be slowly phased out to reduced the effect and the huge dependence on H2B unlike MIRAS which stopped overnight.  

[Si1]

9 minutes ago, happyguy said:

It will be slowly phased out to reduced the effect and the huge dependence on H2B unlike MIRAS which stopped overnight.  

May well be, you'd think. Is this confirmed anywhere?

[Democorruptcy]

Funny how every other HTB move was announced in the budget speech but not the tapering down. A lot of people seem to think it's a FTB scheme, did Hammond not want to let the cat out of the bag? Was he worried he might crash houses prices with the move?

[mrtickle]

4 hours ago, scottbeard said:

Help to buy isn't being removed though is it?  The original end date was 2021 and now it's been extended to 2023 - it's just that it only applies to first time buyers now?

Even worse than you remember. It was started in 2013 and the original end date was 2017.

It should have been long gone already now.

Then in the 2014 budget the end date was extended until 2021. That was its SECOND end date.

This is despite round criticism from many including the OBR and the OECD.

Now it's been extended yet again, until 2023.

Even worse still, Labour's Election Manifesto in 2017: "Labour will extend Help to Buy for a full decade to 2027."

What a nightmare. I can imagine them both competing at the next election for who can pledge to keep it going the longest.

 

 

[Insane]

4 hours ago, happyguy said:

It will be slowly phased out to reduced the effect and the huge dependence on H2B unlike MIRAS which stopped overnight.  

MIRAS was not stopped overnight. Double MIRAS where unmarried people could both claim MIRAS on the same mortgage was stopped in August 1988. The announcement was made in the spring budget of that year creating a stampede of people who could claim it rushing to buy prior to the cut off . The rush to buy along with interest rates reducing during that spring caused a house price bubble that then burst as interest rates rose at the end of 88 and during 89.

Single MIRAS remained , you could claim it on the first £30,000 of a mortgage and those paying 40% income tax rate got the 40% relief. As time went on it was limited to the basic rate of income tax and I maybe wrong here but reduced to the first £20,000 of a mortgage. As interest rates dropped the value dropped and the Labour government finally  stopped it a few years after coming to power. 

 

[adarmo]

1 hour ago, mrtickle said:

Even worse than you remember. It was started in 2013 and the original end date was 2017.

It should have been long gone already now.

Then in the 2014 budget the end date was extended until 2021. That was its SECOND end date.

This is despite round criticism from many including the OBR and the OECD.

Now it's been extended yet again, until 2023.

Even worse still, Labour's Election Manifesto in 2017: "Labour will extend Help to Buy for a full decade to 2027."

What a nightmare. I can imagine them both competing at the next election for who can pledge to keep it going the longest.

 

 

I predict it will be extended again in 2020

[nothernsoul]

Its the ideal policy for the government, a houseprice prop disguised as help for the priced out. Thinly disguised, but just enough to avoid boldly stating " yes prices are too high but we dont want them to fall. 

 

[peter_2008]

Over the last 20 years, we have managed to reduce the sacred right of democratic vote, which millions fought and died for, to a grotesque charade of basically electing which ever political party is your favourite mortgage broker.

No one cares about rights, equality and social justice anymore. The voters declaimed loud and clear through their votes that the only thing they really want is a cheap mortgage.   

[scottbeard]

8 hours ago, peter_2008 said:

No one cares about rights, equality and social justice anymore. The voters declaimed loud and clear through their votes that the only thing they really want is a cheap mortgage.   

It might seem that way, but actually less than half of eligible voters in the UK even have a mortgage, and for many of those who do it will now be of trivial size and due to be paid off shortly.

As home ownership continues to decline, this group will become ever less of an electoral force, too.

[iamnumerate]

15 hours ago, nothernsoul said:

Its the ideal policy for the government, a houseprice prop disguised as help for the priced out. Thinly disguised, but just enough to avoid boldly stating " yes prices are too high but we dont want them to fall. 

 

Very true, I had a colleague who bought a few years ago via HTB and she thought that it was great for her (it probably wasn't).  It is popular even though it is not good for us.

[Si1]

On 01/11/2018 at 16:22, scottbeard said:

Help to buy isn't being removed though is it?  The original end date was 2021 and now it's been extended to 2023 - it's just that it only applies to first time buyers now?

2021 being just after the postulated 2020 GE. Now that's back to 2022 they need the coolaid to carry on that little bit longer.

[winkie]

10 hours ago, scottbeard said:

It might seem that way, but actually less than half of eligible voters in the UK even have a mortgage, and for many of those who do it will now be of trivial size and due to be paid off shortly.

As home ownership continues to decline, this group will become ever less of an electoral force, too.

Very true......the voters will be the priced out and the parents and grandparents of the priced out.?

[Wayward]

 

https://www.out-law.com/en/articles/2018/october/budget-help-to-buy-equity-loan-scheme/?utm_source=Emerge&utm_medium=Email&utm_content=c3191dda-b46f-4162-be41-a5a017c4f392

 

Fair view from Pinsent Masons solicitors on HTB extension announced in budget ...

 

"Help to Buy has consistently been seen as a mechanism for purchasers to buy properties that were otherwise out of their league, raising concerns that the market has been artificially inflated and purely boosting profits for housebuilders," he said.

"The extension of the mechanism to 2023 (with no obvious subsequent replacement), aligned with a future shift in mortgage interest rates and potential affordability issues, could result in a housing slump."

[rantnrave]

Lots in Saturday's printed Telegraph about the extension having upper price limits which vary around the UK. Cant see any mention of that elsewhere.

[Wayward]

19 minutes ago, rantnrave said:

Lots in Saturday's printed Telegraph about the extension having upper price limits which vary around the UK. Cant see any mention of that elsewhere.

From April 2021, the Help to Buy equity loan scheme will be available to first-time buyers only, and restricted to properties priced at 1.5 times the current forecast regional average first-time buyer price or lower. These caps range from £186,100 in the north east of England, to £600,000 in London

[Si1]

38 minutes ago, rantnrave said:

Lots in Saturday's printed Telegraph about the extension having upper price limits which vary around the UK. Cant see any mention of that elsewhere.

So the sharp elbowed establishment middle class Torygraph readers will know to shoehorn their kiddies into the home counties housing market before 2021 then, while HTB is rather less restricted. Important info.

Edited November 5, 2018 by Si1

[Si1]

"I’m so glad we were able to move when we did”, says Mrs Druce-Harding. “If caps were in place now we wouldn’t have been able to buy.” I wonder how long she will feel this way.

 

from moneyweek

[bear.getting.old]

Hasn't anyone here lobbied their Tory MPs on the HTB extension? Its a bloody disgrace to be carrying this on until 2023. Its like they are on crack cocaine. We need a proper government in who will end this socialist madness. It just leaves the taxpayer on the hook and does nothing to help FTBs afford a house as the prices are just being raised higher because of the turd brained scheme!

Maggie Thatcher wouldn't have had this stupid scheme in her day

Edited November 6, 2018 by bear.getting.old