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HTB extended to existing home owners


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Not sure if this has been started in another topic, but I received an email today from rightmove partners, Bellway homes, saying that HTB will be extended to existing home owners, not just FTB until March 2021. Provided the borrower can stump up 5%, the government will provide 20% of the deposit for a 75% LTV loan.

This obviously has quite big implications, and not all bad in my view. It will mean that existing home owners of flats, semis and terraces wanting to move up will accept lower offers so they can buy a rubbish new build. This will have a negative effect on prices on older homes, but mean that new builds will hold their price...I hate new builds, so doesn’t bother me. I suspect Sunak might stop Stamp duty till next April as well, maybe on houses under 500k, to also get the market moving.

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Help to Buy is due to change

images_5Percent_IconWhite.png

Both existing homeowners and first time buyers can use Help to Buy until March 2021 with just 5% deposit

images_HouseFirstTimeBuyer_IconWhite.png

From April 2021, Help to Buy will only be available for first time buyers

images_Money_IconWhite-1.png

New regional price caps will restrict the value of the home you can buy

 

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8 minutes ago, Warlord said:

Many of us predicted this... 

HTB has cost £10 billion+ so far .. I believe.

We the taxpayer are being screwed yet again.

 

Has it cost 10 billion, or is that the amount of outstanding loans? What interests me is what happens with HTB defaults, presumably the government is on the tab for any 20% loss, but do they chase up the defaulting ex-home owner.

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1 minute ago, HovelinHove said:

Has it cost 10 billion, or is that the amount of outstanding loans? What interests me is what happens with HTB defaults, presumably the government is on the tab for any 20% loss, but do they chase up the defaulting ex-home owner.

Just the loans I believe but we're on the hook for it! 

Quote

Just 24 hours after Persimmon revealed half of its homes were funded by Helped to Buy, HM Treasury has revealed that nearly 500,000 homes have been purchased via the scheme since it started in 2013 and that £10.7 billion has been spent on equity loans for the scheme by the government.

https://thenegotiator.co.uk/help-to-buy-ten-billion-spending/

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48 minutes ago, HovelinHove said:

Not sure if this has been started in another topic, but I received an email today from rightmove partners, Bellway homes, saying that HTB will be extended to existing home owners, not just FTB until March 2021. Provided the borrower can stump up 5%, the government will provide 20% of the deposit for a 75% LTV loan.

This obviously has quite big implications, and not all bad in my view. It will mean that existing home owners of flats, semis and terraces wanting to move up will accept lower offers so they can buy a rubbish new build. This will have a negative effect on prices on older homes, but mean that new builds will hold their price...I hate new builds, so doesn’t bother me. I suspect Sunak might stop Stamp duty till next April as well, maybe on houses under 500k, to also get the market moving.

 

You have got to be f**king kidding me.  Sunak should be jailed.  If the young dont tell these thieves to F**K off they are making a noose for their own necks

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17 minutes ago, Wayward said:

When was this news released..I can't see evidence of this in house builder share price movements?

I got an email Yesterday evening from rightmove sponsored by Bellway builders. It says HTB is about to change, then has that graphic in my original post. Maybe they are jumping the gun before it is officially announced. I kind of get it and if It helps precipitate a 10-20% drop, which I think it will, then bring it on. This won’t help the second hand home market and if anything will make it worse as two people trying to sell a flat at 250k on the same street...one is wanting to buy a 400k detached which is second hand, they can only get an 80% LTV loan, but only have 20% if they sell their flat for 250k...they will not budge on price. The other flat owner with the same finances now can drop their price significantly and still qualify for HTB as they only need 5%.

Yes, this will prop up the evil builders (not a bad thing, they can build more, increasing supply), but this will really make it hard for second hand home owners competing with new builds.

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9 minutes ago, HovelinHove said:

Hang on...am I being dumb...is HTB already open to existing home owners? The changes they describe are an extension only for FTBs from April 2021.

correct. The scheme was always there for new build (irrespective of who buys it). The change is to restrict to FTB and put a ceiling on price based on region. Essex for example is moving from 600k to 410k.

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2 minutes ago, Gush said:

correct. The scheme was always there for new build (irrespective of who buys it). The change is to restrict to FTB and put a ceiling on price based on region. Essex for example is moving from 600k to 410k.

True, but Scotland has already extended HTB for another year to existing home owners so I’m pretty sure it’ll be a uk-wide ‘budget giveaway for hardworking families’  in November.

I too am not really fussed about this. Let them have the new builds as I’ve got no interest in them. 

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59 minutes ago, TheCountOfNowhere said:

You have got to be f**king kidding me.  Sunak should be jailed.  If the young dont tell these thieves to F**K off they are making a noose for their own necks

He seems to be very popular, although I can't think why. All smiles, no substance and slippery as an eel. I Identified him as such when he first rose from the ranks to become Chief Secretary to the Treasury.

Don't forget that he only got the job because Javid resigned rather than come under the direct control of Cummings and his No 10 "advisers".

Edited by Bruce Banner
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54 minutes ago, TheCountOfNowhere said:

You have got to be f**king kidding me.  Sunak should be jailed.  If the young dont tell these thieves to F**K off they are making a noose for their own necks

The young don't vote, never really have. And those that do, don't vote for these thieves.

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Just now, Bruce Banner said:

He seems to be very popular, although I can't think why. All smiles, no substance and slippery as an eel. I Identified him as such when he first rose from the ranks to become Chief Secretary to the Treasury.

I thought he was ok at first and willing to give him the benefit of the doubt but I'm starting to think I was wrong.

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24 minutes ago, HovelinHove said:

Hang on...am I being dumb...is HTB already open to existing home owners? The changes they describe are an extension only for FTBs from April 2021.

That's how I read it...they are changing the logo it appears to include a little  '1st'..so from spring next year I will be competing with more existing owners...but do many existing owners use HTB?

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27 minutes ago, Wayward said:

That's how I read it...they are changing the logo it appears to include a little  '1st'..so from spring next year I will be competing with more existing owners...but do many existing owners use HTB?

Existing home owners already use HTB. From April next year they won't be able to. I don't think this is new news, unless your concern is that existing owners will now be competing on the resale market.

Edited by Si1
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33 minutes ago, Bruce Banner said:

He seems to be very popular, although I can't think why. All smiles, no substance and slippery as an eel. I Identified him as such when he first rose from the ranks to become Chief Secretary to the Treasury.

Don't forget that he only got the job because Javid resigned rather than come under the direct control of Cummings and his No 10 "advisers".

At last.  Someone else who thinks what I do. And Count of Nowhere. Apologies to anyone else I can't think of who agrees. Fair play to you for sussing him well before I did.

I M O this bloke is beginning to look like the worst of the worst. Fortunately he may still be sunk by the sheer scale of the problems he faces.

 

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The chancellor is just another big spending politician in the mould of Blair/Brown/Cameron etc. If he had anything about him he would tell the truth about the dire situation and cut spending but he wont ... ask yourself why!

 

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So why won't the chancellor tell the truth about the dire situation? Why won't he cut spending and balance the budget ?

He is captured by special interests, the civil service and tory Party donors who do very well out of the status quo. 

This is the only explanation .  

He is a liar and a fraud.   Don't look to  him for salvation.

 

Edited by Warlord
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4 minutes ago, Warlord said:

So why won't the chancellor tell the truth about the dire situation? Why won't he cut spending and balance the budget ?

He is captured by special interests, the civil service and tory Party donors who do very well out of the status quo. 

This is the only explanation .  

He is a liar and a fraud.   Don't look to  him for salvation.

 

His billionaire father in law may have some influence too?

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  • 415 Brexit, House prices and Summer 2020

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      • up 5%



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